Smith Douglas Homes (NYSE:SDHC) Shares Down 5.7% – Should You Sell?

Smith Douglas Homes Corp. (NYSE:SDHC)’s share price was down 5.7% on Monday . The company traded as low as $35.25 and last traded at $35.36. Approximately 15,494 shares changed hands during trading, a decline of 89% from the average daily volume of 143,204 shares. The stock had previously closed at $37.50.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on SDHC shares. Royal Bank of Canada reiterated a “sector perform” rating and set a $26.00 price objective on shares of Smith Douglas Homes in a research report on Thursday, August 15th. Bank of America increased their target price on shares of Smith Douglas Homes from $36.00 to $40.00 and gave the company a “neutral” rating in a report on Thursday, September 19th. Wedbush reiterated a “neutral” rating and issued a $20.00 target price on shares of Smith Douglas Homes in a research note on Wednesday, August 14th. Finally, Wells Fargo & Company lifted their target price on shares of Smith Douglas Homes from $35.00 to $40.00 and gave the company an “equal weight” rating in a research report on Monday, October 7th. Five analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $31.50.

Smith Douglas Homes Stock Up 1.3 %

The firm’s 50 day moving average is $36.27 and its 200 day moving average is $30.27.

Smith Douglas Homes (NYSE:SDHC) last issued its quarterly earnings data on Wednesday, August 14th. The company reported $0.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.03. The company had revenue of $220.90 million for the quarter, compared to analysts’ expectations of $208.02 million. Smith Douglas Homes’s quarterly revenue was up 21.7% on a year-over-year basis. As a group, analysts anticipate that Smith Douglas Homes Corp. will post 1.66 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Azzad Asset Management Inc. ADV lifted its stake in Smith Douglas Homes by 3.1% during the 3rd quarter. Azzad Asset Management Inc. ADV now owns 11,579 shares of the company’s stock valued at $437,000 after acquiring an additional 349 shares during the period. nVerses Capital LLC bought a new position in shares of Smith Douglas Homes during the 3rd quarter valued at approximately $34,000. RiverPark Advisors LLC bought a new position in shares of Smith Douglas Homes during the 2nd quarter valued at approximately $120,000. Sandia Investment Management LP bought a new stake in Smith Douglas Homes in the first quarter worth $178,000. Finally, Teachers Retirement System of The State of Kentucky boosted its stake in shares of Smith Douglas Homes by 38.0% during the second quarter. Teachers Retirement System of The State of Kentucky now owns 26,226 shares of the company’s stock valued at $613,000 after purchasing an additional 7,217 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.