Smith Douglas Homes (NYSE:SDHC) Sees Unusually-High Trading Volume – What’s Next?

Shares of Smith Douglas Homes Corp. (NYSE:SDHC) saw unusually-strong trading volume on Monday . Approximately 217,672 shares changed hands during mid-day trading, an increase of 115% from the previous session’s volume of 101,225 shares.The stock last traded at $19.11 and had previously closed at $19.27.

Analysts Set New Price Targets

Several analysts have issued reports on SDHC shares. Wells Fargo & Company decreased their price objective on shares of Smith Douglas Homes from $21.00 to $20.00 and set an “equal weight” rating for the company in a research note on Monday, April 14th. Royal Bank of Canada set a $16.00 price objective on shares of Smith Douglas Homes and gave the company a “sector perform” rating in a report on Tuesday, May 20th. 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. Finally, Wedbush reissued a “neutral” rating and set a $18.00 price objective on shares of Smith Douglas Homes in a report on Wednesday, May 14th. One investment analyst has rated the stock with a sell rating and four have given a hold rating to the company. According to MarketBeat.com, Smith Douglas Homes currently has a consensus rating of “Hold” and a consensus price target of $18.90.

Smith Douglas Homes Price Performance

The stock has a market capitalization of $1.00 billion, a PE ratio of 11.29, a price-to-earnings-growth ratio of 6.87 and a beta of 1.05. The business’s fifty day moving average price is $18.88 and its two-hundred day moving average price is $22.94.

Smith Douglas Homes (NYSE:SDHC) last announced its quarterly earnings data on Wednesday, March 12th. The company reported $0.46 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.46. Smith Douglas Homes had a net margin of 4.60% and a return on equity of 21.01%. The firm had revenue of $287.49 million for the quarter, compared to analyst estimates of $265.85 million. As a group, equities research analysts anticipate that Smith Douglas Homes Corp. will post 1.73 earnings per share for the current fiscal year.

Smith Douglas Homes announced that its board has approved a stock repurchase plan on Wednesday, May 28th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 5.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Smith Douglas Homes

In other news, Director Neill B. Faucett acquired 7,000 shares of the firm’s stock in a transaction on Friday, May 23rd. The stock was acquired at an average price of $17.36 per share, for a total transaction of $121,520.00. Following the completion of the transaction, the director now owns 14,505 shares in the company, valued at approximately $251,806.80. The trade was a 93.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Russell Devendorf acquired 3,000 shares of the firm’s stock in a transaction on Wednesday, May 21st. The stock was purchased at an average price of $16.80 per share, with a total value of $50,400.00. Following the transaction, the insider now owns 299,952 shares of the company’s stock, valued at approximately $5,039,193.60. This trade represents a 1.01% increase in their position. The disclosure for this purchase can be found here. Over the last three months, insiders have acquired 35,252 shares of company stock valued at $644,624. 82.71% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Geode Capital Management LLC raised its position in shares of Smith Douglas Homes by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 90,038 shares of the company’s stock worth $2,310,000 after purchasing an additional 457 shares during the last quarter. M&T Bank Corp raised its position in shares of Smith Douglas Homes by 8.4% during the 1st quarter. M&T Bank Corp now owns 11,001 shares of the company’s stock worth $215,000 after purchasing an additional 848 shares during the last quarter. Arcadia Investment Management Corp MI acquired a new position in shares of Smith Douglas Homes during the 4th quarter worth about $27,000. PDT Partners LLC raised its position in shares of Smith Douglas Homes by 10.7% during the 1st quarter. PDT Partners LLC now owns 13,988 shares of the company’s stock worth $273,000 after purchasing an additional 1,349 shares during the last quarter. Finally, New York State Common Retirement Fund raised its position in shares of Smith Douglas Homes by 1.0% during the 1st quarter. New York State Common Retirement Fund now owns 185,119 shares of the company’s stock worth $3,614,000 after purchasing an additional 1,744 shares during the last quarter.

Smith Douglas Homes Company Profile

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.