Smith Douglas Homes (NYSE:SDHC) Shares Gap Up – Still a Buy?

Smith Douglas Homes Corp. (NYSE:SDHC) gapped up prior to trading on Monday . The stock had previously closed at $19.67, but opened at $20.29. Smith Douglas Homes shares last traded at $20.11, with a volume of 20,809 shares trading hands.

Analyst Ratings Changes

Several brokerages have recently issued reports on SDHC. JPMorgan Chase & Co. decreased their target price on Smith Douglas Homes from $36.00 to $35.00 and set a “neutral” rating for the company in a research report on Friday, December 13th. Bank of America lowered Smith Douglas Homes from a “neutral” rating to an “underperform” rating and decreased their target price for the company from $33.00 to $22.00 in a research report on Monday, January 27th. Finally, Wells Fargo & Company decreased their target price on Smith Douglas Homes from $24.00 to $21.00 and set an “equal weight” rating for the company in a research report on Thursday. One research analyst has rated the stock with a sell rating and four have issued a hold rating to the company. According to MarketBeat, Smith Douglas Homes presently has a consensus rating of “Hold” and an average target price of $24.80.

Smith Douglas Homes Stock Performance

The company has a market cap of $1.03 billion, a P/E ratio of 11.42, a P/E/G ratio of 6.87 and a beta of 1.44. The firm has a 50 day moving average price of $23.02 and a two-hundred day moving average price of $29.89.

Smith Douglas Homes (NYSE:SDHC) last posted its quarterly earnings results on Wednesday, March 12th. The company reported $0.46 earnings per share for the quarter, hitting the consensus estimate of $0.46. The company had revenue of $287.49 million during the quarter, compared to the consensus estimate of $265.85 million. Smith Douglas Homes had a return on equity of 21.01% and a net margin of 4.60%. On average, sell-side analysts predict that Smith Douglas Homes Corp. will post 1.73 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Geode Capital Management LLC grew its stake 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 acquiring an additional 457 shares during the period. Arcadia Investment Management Corp MI bought a new position in Smith Douglas Homes in the 4th quarter worth about $27,000. Quantbot Technologies LP boosted its stake in Smith Douglas Homes by 287.0% in the 3rd quarter. Quantbot Technologies LP now owns 3,692 shares of the company’s stock worth $139,000 after purchasing an additional 2,738 shares during the period. Atria Investments Inc bought a new position in Smith Douglas Homes in the 3rd quarter worth about $204,000. Finally, XTX Topco Ltd bought a new position in Smith Douglas Homes in the 3rd quarter worth about $246,000.

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.