Smith Douglas Homes (NYSE:SDHC) Shares Gap Up – Should You Buy?

Shares of 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.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. JPMorgan Chase & Co. decreased their price objective on shares of Smith Douglas Homes from $36.00 to $35.00 and set a “neutral” rating on the stock in a report on Friday, December 13th. Wells Fargo & Company decreased their price objective on shares of Smith Douglas Homes from $24.00 to $21.00 and set an “equal weight” rating on the stock in a report on Thursday, March 13th. Finally, Bank of America lowered shares of Smith Douglas Homes from a “neutral” rating to an “underperform” rating and decreased their price objective for the stock from $33.00 to $22.00 in a report on Monday, January 27th. One research analyst has rated the stock with a sell rating and four have assigned 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 $24.80.

Smith Douglas Homes Stock Performance

The firm’s 50 day moving average is $22.85 and its two-hundred day moving average is $29.64. The stock has a market capitalization of $1.00 billion, a PE ratio of 11.10, a P/E/G ratio of 6.87 and a beta of 1.44.

Smith Douglas Homes (NYSE:SDHC) last announced its earnings results on Wednesday, March 12th. The company reported $0.46 earnings per share for the quarter, hitting the consensus estimate 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 the consensus estimate of $265.85 million. On average, analysts anticipate that Smith Douglas Homes Corp. will post 1.73 EPS for the current year.

Institutional Investors Weigh In On Smith Douglas Homes

A number of large investors have recently modified their holdings of SDHC. Wasatch Advisors LP increased its position in shares of Smith Douglas Homes by 438.9% in the 4th quarter. Wasatch Advisors LP now owns 1,156,019 shares of the company’s stock valued at $29,640,000 after purchasing an additional 941,511 shares during the last quarter. Beck Mack & Oliver LLC increased its position in shares of Smith Douglas Homes by 58.1% in the 4th quarter. Beck Mack & Oliver LLC now owns 699,430 shares of the company’s stock valued at $17,933,000 after purchasing an additional 256,950 shares during the last quarter. First Eagle Investment Management LLC increased its position in shares of Smith Douglas Homes by 52.8% in the 4th quarter. First Eagle Investment Management LLC now owns 148,882 shares of the company’s stock valued at $3,817,000 after purchasing an additional 51,419 shares during the last quarter. Artisan Partners Limited Partnership increased its position in shares of Smith Douglas Homes by 4.6% in the 4th quarter. Artisan Partners Limited Partnership now owns 813,082 shares of the company’s stock valued at $20,847,000 after purchasing an additional 35,702 shares during the last quarter. Finally, Renaissance Technologies LLC increased its position in shares of Smith Douglas Homes by 31.9% in the 4th quarter. Renaissance Technologies LLC now owns 99,200 shares of the company’s stock valued at $2,543,000 after purchasing an additional 24,000 shares during the last quarter.

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.