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In a recent transaction, Faucett Neill B, a director at Smith Douglas Homes Corp. (NASDAQ:SDHC), purchased 7,000 shares of Class A Common Stock. The shares were acquired on May 23, 2025, at a price of $17.3575 per share, totaling approximately $121,502. The purchase comes as InvestingPro data shows the stock trading significantly below its Fair Value, despite the company maintaining strong liquidity with a current ratio of 8.2. Following this purchase, Neill B’s direct ownership in the company increased to 14,505 shares. This transaction reflects continued confidence in Smith Douglas Homes by its board members, particularly notable given the stock’s 46% decline over the past six months. For comprehensive insider trading analysis and 10+ additional ProTips, explore InvestingPro’s detailed research report.
In other recent news, Smith Douglas Homes Corp reported its Q1 2025 earnings, showing a revenue increase of 19% year-over-year to $224.7 million, although earnings per share (EPS) missed expectations at $0.30 compared to the forecasted $0.40. This was attributed to increased home closings, yet net income decreased to $18.7 million from $20.5 million the previous year. In a strategic financial move, the company amended its credit agreement, increasing total revolving commitments to $325 million and extending the revolving loan maturity date to May 2029. This amendment aims to provide additional borrowing capacity and support growth. Meanwhile, RBC Capital maintained a Sector Perform rating on Smith Douglas Homes but lowered the price target from $21.00 to $16.00, citing a challenging economic environment and the company’s focus on sales volume over price increases. RBC analysts also revised their forecasts for the company’s adjusted EPS for fiscal years 2025 and 2026, projecting declines of 24% and 26%, respectively. Despite these challenges, Smith Douglas Homes remains optimistic about future performance, projecting EPS increases and maintaining a robust gross margin of 23.8% on home closings.
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