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In a series of recent transactions, George Ervin Perdue III, a director at Smith Douglas Homes Corp. (NASDAQ:SDHC), acquired shares of the company’s Class A common stock totaling approximately $104,324. The purchases occurred over three consecutive days, from June 11 to June 13, 2025. The timing is notable as InvestingPro data shows the stock has declined over 44% in the past six months, with the company currently appearing undervalued according to InvestingPro’s Fair Value analysis.
On June 11, Perdue purchased 3,500 shares at a weighted average price of $19.7357 per share. The shares were acquired in multiple transactions, with prices ranging from $19.35 to $20.10. The following day, he added another 500 shares at $19.40 per share. Finally, on June 13, Perdue bought 1,400 shares at $18.25 per share. The stock currently trades at $17.72, below Perdue’s purchase prices. InvestingPro subscribers can access 8 additional key insights about SDHC’s financial health and future prospects through exclusive ProTips.
These acquisitions increased Perdue’s direct ownership to 40,384 shares following the transactions. The company, with a market capitalization of $159 million, maintains strong liquidity with a current ratio of 8.2 and operates with moderate debt levels.
In other recent news, Smith Douglas Homes Corp reported a 19% year-over-year increase in revenue for Q1 2025, reaching $224.7 million. However, the company missed earnings per share (EPS) expectations, reporting $0.30 compared to the forecasted $0.40. Analysts from RBC Capital maintained a Sector Perform rating on Smith Douglas Homes but reduced the price target from $21.00 to $16.00, citing concerns about a challenging economic environment and the company’s strategy of prioritizing sales volume over price increases. Additionally, Smith Douglas Homes announced an amendment to its credit agreement, increasing its total revolving commitments to $325 million and extending the revolving loan maturity date to May 15, 2029. This amendment, involving Wells Fargo (NYSE:WFC) Bank as the administrative agent, aims to provide increased financial flexibility to support the company’s operations and growth. Despite the earnings miss, the company maintained a robust gross margin of 23.8% on home closings. RBC Capital noted the long-term appeal of Smith Douglas Homes’ asset-light business model, although they anticipate continued stock volatility in the near term.
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