Why These 15 Real Estate Stocks Are Plunging In 2025

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10. Smith Douglas Homes Corp (NYSE:SDHC)

Number of Hedge Fund Holders In Q4 2024: 10

Smith Douglas Homes Corp (NYSE:SDHC) is a real estate company that sells single-family homes in the southeastern United States. It targets entry-level and empty-nest homebuyers.

The stock is down significantly so far in 2025 as Bank of America downgraded Smith Douglas Homes from “neutral” to “underperform” and slashed its price target from $33 to $22 in January.

Analysts also noted that the company’s return on equity (ROE) is expected to decline as delivery growth moderates and margins normalize.

Plus, rising mortgage rates have dampened demand for entry-level homes. This is the core market for the company, and higher lot costs and construction cost inflation have also squeezed margins across the homebuilding sector.

The company is set to release its fourth-quarter 2024 financial results on March 12, 2025.

The consensus price target of $25.4 implies 15.11% upside.

SDHC stock is down 14.20% year-to-date.

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