Smith Douglas Homes (NYSE:SDHC) Shares Down 11.1% After Earnings Miss

Shares of Smith Douglas Homes Corp. (NYSE:SDHC) traded down 11.1% during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $13.64 and last traded at $13.83. Approximately 17,401 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 100,106 shares. The stock had previously closed at $15.55.

The company reported $0.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.11 by ($0.08). Smith Douglas Homes had a net margin of 0.64% and a negative return on equity of 0.19%. The business had revenue of $273.03 million during the quarter, compared to analysts’ expectations of $258.10 million.

Wall Street Analyst Weigh In

A number of research firms have issued reports on SDHC. Wall Street Zen upgraded shares of Smith Douglas Homes from a “sell” rating to a “hold” rating in a report on Saturday, June 13th. Zacks Research upgraded shares of Smith Douglas Homes from a “strong sell” rating to a “hold” rating in a report on Friday, May 15th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Smith Douglas Homes in a research report on Friday, July 17th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Smith Douglas Homes presently has an average rating of “Reduce” and a consensus price target of $13.90.

Hedge Funds Weigh In On Smith Douglas Homes

Several large investors have recently added to or reduced their stakes in SDHC. First Eagle Investment Management LLC increased its stake in shares of Smith Douglas Homes by 14.2% during the 4th quarter. First Eagle Investment Management LLC now owns 378,774 shares of the company’s stock valued at $6,352,000 after acquiring an additional 47,100 shares during the last quarter. Conifer Management L.L.C. grew its holdings in Smith Douglas Homes by 68.3% in the fourth quarter. Conifer Management L.L.C. now owns 1,433,350 shares of the company’s stock valued at $24,037,000 after purchasing an additional 581,794 shares during the period. Teachers Retirement System of The State of Kentucky grew its holdings in Smith Douglas Homes by 13.9% in the fourth quarter. Teachers Retirement System of The State of Kentucky now owns 37,859 shares of the company’s stock valued at $635,000 after purchasing an additional 4,608 shares during the period. Quent Capital LLC acquired a new position in Smith Douglas Homes during the fourth quarter worth approximately $386,000. Finally, VARCOV Co. purchased a new position in Smith Douglas Homes during the fourth quarter worth approximately $200,000.

Smith Douglas Homes Stock Performance

The stock’s fifty day simple moving average is $14.51 and its two-hundred day simple moving average is $14.63. The company has a market cap of $706.35 million, a price-to-earnings ratio of 19.32 and a beta of 0.88.

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. was founded in 2008 and is headquartered in Woodstock, Georgia.