Smith Douglas Homes Corp. (NYSE:SDHC) saw its share price decline by 4.5% during trading on Thursday, reaching a low of $20.45 before closing at $20.53. This drop occurred amid significant changes in analyst ratings and a notable decrease in trading volume. Approximately 17,501 shares changed hands, marking a 79% decline from the average daily volume of 81,578 shares.
Analyst Ratings Shift
Several brokerages have reassessed their ratings for Smith Douglas Homes in recent days. On October 8, Weiss Ratings reaffirmed a “sell (d+)” rating for the company’s shares. Following this, Wall Street Zen downgraded the stock from a “hold” to a “sell” rating on November 9. Royal Bank of Canada reduced its price target for Smith Douglas Homes from $16.00 to $15.00, maintaining a “sector perform” rating. Similarly, Wells Fargo & Company lowered its price target from $20.00 to $18.00 and set an “equal weight” rating.
As of now, one equity research analyst has issued a Buy rating, five have assigned a Hold rating, and three have given a Sell rating. According to MarketBeat, the consensus rating for Smith Douglas Homes is “Reduce,” with an average target price of $16.60.
Financial Performance and Future Projections
Smith Douglas Homes released its quarterly earnings on November 5, reporting a loss of ($0.12) earnings per share, significantly missing the consensus estimate of $0.26 by ($0.38). The company achieved revenue of $262.04 million for the quarter, surpassing the consensus estimate of $251.41 million. Analysts currently forecast that Smith Douglas Homes will post an EPS of 1.73 for the current fiscal year.
Institutional investors have recently altered their positions in the stock. Covey Capital Advisors LLC acquired a new stake during the second quarter, amounting to approximately $705,000. First Eagle Investment Management LLC increased its holdings by 1.7%, now owning 240,382 shares valued at $4.67 million. Beck Mack & Oliver LLC raised its position by 20.2%, resulting in ownership of 840,975 shares valued at $16.42 million.
PDT Partners LLC also increased its stake by 10.7%, owning 13,988 shares valued at $273,000 after additional purchases. Corton Capital Inc. boosted its holdings by 41.0%, now owning 20,752 shares worth $403,000.
Smith Douglas Homes Corp. is engaged in the design, construction, and sale of single-family homes primarily in the southeastern United States. The company’s offerings target entry-level and empty-nest homebuyers and include services such as closing, escrow, and title insurance.
