Smith Douglas Homes (NYSE:SDHC) Shares Gap Up Following Insider Buying Activity

Smith Douglas Homes Corp. (NYSE:SDHC) shares gapped up before the market opened on Monday following insider buying activity. The stock had previously closed at $17.72, but opened at $19.24. Smith Douglas Homes shares last traded at $18.34, with a volume of 17,500 shares trading hands.

Specifically, Director George Ervin Perdue III bought 1,400 shares of Smith Douglas Homes stock in a transaction on Friday, June 13th. The shares were bought at an average cost of $18.25 per share, for a total transaction of $25,550.00. Following the acquisition, the director now owns 40,384 shares in the company, valued at approximately $737,008. This trade represents a 3.59% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director George Ervin Perdue III bought 3,500 shares of Smith Douglas Homes stock in a transaction on Wednesday, June 11th. The stock was purchased at an average price of $19.74 per share, for a total transaction of $69,090.00. Following the completion of the acquisition, the director now owns 38,484 shares in the company, valued at $759,674.16. This represents a 10.00% increase in their position. The disclosure for this purchase can be found here.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Wedbush reiterated a “neutral” rating and set a $18.00 price objective on shares of Smith Douglas Homes in a report on Wednesday, May 14th. JPMorgan Chase & Co. cut their price objective on shares of Smith Douglas Homes from $24.00 to $18.50 and set a “neutral” rating on the stock in a report on Wednesday, May 21st. Wells Fargo & Company cut their price objective on shares of Smith Douglas Homes from $21.00 to $20.00 and set an “equal weight” rating on the stock in a report on Monday, April 14th. Finally, Royal Bank Of Canada set a $16.00 price objective on shares of Smith Douglas Homes and gave the stock a “sector perform” rating in a report on Tuesday, May 20th. One equities research analyst has rated the stock with a sell rating and four have given a hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $18.90.

Smith Douglas Homes Stock Performance

The firm has a market capitalization of $906.20 million, a PE ratio of 10.19, a price-to-earnings-growth ratio of 9.54 and a beta of 1.05. The company’s fifty day moving average price is $18.90 and its two-hundred day moving average price is $22.31.

Smith Douglas Homes declared that its board has approved a stock buyback plan on Wednesday, May 28th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 5.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of SDHC. Arcadia Investment Management Corp MI purchased a new position in Smith Douglas Homes in the fourth quarter valued at approximately $27,000. M&T Bank Corp raised its holdings in Smith Douglas Homes by 8.4% in the first quarter. M&T Bank Corp now owns 11,001 shares of the company’s stock valued at $215,000 after buying an additional 848 shares during the period. Trexquant Investment LP purchased a new position in Smith Douglas Homes in the fourth quarter valued at approximately $218,000. PDT Partners LLC raised its holdings in Smith Douglas Homes by 10.7% in the first quarter. PDT Partners LLC now owns 13,988 shares of the company’s stock valued at $273,000 after buying an additional 1,349 shares during the period. Finally, Victory Capital Management Inc. raised its holdings in Smith Douglas Homes by 80.2% in the first quarter. Victory Capital Management Inc. now owns 14,395 shares of the company’s stock valued at $281,000 after buying an additional 6,406 shares during the period.

About Smith Douglas Homes

Smith Douglas Homes Corp., together with its subsidiaries, engages in the design, construction, and sale of single-family homes in the southeastern United States. It also provides closing, escrow, and title insurance services. The company sells its products to entry-level and empty-nest homebuyers. Smith Douglas Homes Corp.