On August 2, 2023, THOMPSON DAVIS & CO., INC., a Richmond-based investment firm, made a notable addition to its portfolio by increasing its position in Smith-Midland Corp (SMID, Financial). This article provides an in-depth analysis of this transaction, the profiles of the firm and the traded company, and an overview of Smith-Midland Corp's stock performance.
Details of the Transaction
The transaction saw THOMPSON DAVIS & CO., INC. add 31,504 shares of Smith-Midland Corp to its portfolio at a trade price of $23.77 per share. This move had a 0.84% impact on the firm's portfolio. Following this transaction, Smith-Midland Corp now constitutes 30.74% of the firm's portfolio. The firm's holding of 1,151,740 shares represents a 21.52% stake in the traded stock.
Profile of the Firm
THOMPSON DAVIS & CO., INC. is a renowned investment firm based in Richmond, Virginia. The firm manages a diverse portfolio of 121 stocks, with a total equity of $88 million. Its top holdings include Sotherly Hotels Inc (SOHO, Financial), Tesla Inc (TSLA, Financial), Carlisle Companies Inc (CSL, Financial), Dover Corp (DOV, Financial), and Smith-Midland Corp (SMID, Financial). The firm's investment strategy primarily focuses on the Basic Materials and Industrials sectors.
Overview of Smith-Midland Corp
Smith-Midland Corp, a USA-based company, is a leading player in the construction, highway, utilities, and farming industries. The company invents, develops, manufactures, markets, sells, and installs precast concrete products. Its primary customers are general contractors and federal, state, and local transportation authorities. The company's market capitalization stands at $126.679 million, with a current stock price of $24.1. 
Analysis of Smith-Midland Corp's Stock
Smith-Midland Corp's stock has a PE percentage of 126.18, indicating that the company is profitable. However, the stock is significantly overvalued according to the GF Value Rank, with a GF Value of 18.36 and a Price to GF Value ratio of 1.31. Since the transaction, the stock has gained 1.39%, and it has grown 369.79% since its IPO. The stock's year-to-date price change ratio is 17.96%.
The stock has a GF Score of 72/100, indicating good outperformance potential. It also has a Balance Sheet Rank of 8/10, a Profitability Rank of 7/10, a Growth Rank of 6/10, a GF Value Rank of 1/10, and a Momentum Rank of 6/10.
Further Analysis of Smith-Midland Corp's Stock
The stock has a Piotroski F-Score of 4 and an Altman Z Score of 5.31. It has a cash to debt ratio of 0.63 and an interest coverage of 3.90. The stock's ROE is 3.05, and its ROA is 1.81.
Growth and Performance of Smith-Midland Corp's Stock
Smith-Midland Corp's stock has seen a gross margin growth of -4.10% and an operating margin growth of -14.40%. The stock's 3-year revenue growth is 1.70%, while its EBITDA growth over the same period is -3.60%. The stock's 3-year earning growth is -26.60%.
Momentum Analysis of Smith-Midland Corp's Stock
The stock's RSI 5 Day is 45.89, its RSI 9 Day is 50.49, and its RSI 14 Day is 55.91. The stock's momentum index 6 - 1 month is 5.96, and its momentum index 12 - 1 month is 36.99.
In conclusion, THOMPSON DAVIS & CO., INC.'s recent acquisition of Smith-Midland Corp's shares has significantly increased the guru's stake in the company. This transaction has not only diversified the guru's portfolio but also positioned the guru to potentially benefit from the stock's future performance.
