Shares of D.R. Horton, Inc. (NYSE:DHI) have been assigned an average rating of “Hold” by fifteen research firms currently covering the stock, as reported by MarketBeat.com. The ratings include two sell recommendations, six holds, six buys, and one strong buy. Analysts set an average 12-month target price of $161.08 for the homebuilding company, reflecting a cautious outlook.
Recent Analyst Insights
The stock has been the focus of several recent analyst evaluations. Weiss Ratings reaffirmed a “hold (C+)” rating on October 7, 2023. On the same day, Evercore ISI set a target price of $169.00, issuing an “in-line” rating. Following this, Bank of America lowered its price objective from $175.00 to $165.00 while maintaining a “neutral” rating on October 10, 2023. In a separate report, BTIG Research initiated coverage with a “buy” rating and a target price of $186.00 on December 1, 2023. Moreover, Wells Fargo & Company revised their target from $190.00 to $180.00, assigning an “overweight” rating on December 8, 2023.
Quarterly Earnings Performance
D.R. Horton released its quarterly earnings results on October 28, 2023. The company reported earnings per share (EPS) of $3.04, missing analysts’ consensus estimates of $3.29 by $0.25. The firm achieved a return on equity of 14.39% with a net margin of 10.47%. Revenue for the quarter reached $9.68 billion, surpassing expectations of $9.44 billion, although it represented a 3.2% decline compared to the same quarter last year, when the EPS was $3.92. Analysts anticipate that D.R. Horton will post an EPS of $13.04 for the current fiscal year.
Dividend Increase
In addition to its earnings report, D.R. Horton announced a quarterly dividend of $0.45, paid on November 20, 2023. Shareholders of record on November 13 received this dividend, which marks an increase from the previous quarter’s $0.40. This brings the annualized dividend to $1.80, yielding 1.2% based on the current stock price. The company’s payout ratio stands at 15.53%.
Institutional Investment Trends
Recent trading activity indicates increased interest from institutional investors. SteelPeak Wealth LLC raised its holdings in D.R. Horton by 65.9% during the second quarter, now owning 10,051 shares valued at approximately $1.3 million. Inspire Investing LLC expanded its position by 787.0% in the first quarter, acquiring an additional 18,086 shares valued at $2.59 million. Swedbank AB increased its stake by 22.8%, holding 524,512 shares worth around $66.68 million after acquiring additional shares. Also, Berkshire Hathaway Inc. purchased a new stake valued at approximately $191.49 million in the second quarter. Currently, institutional investors own 90.63% of the stock.
D.R. Horton remains a key player in the U.S. residential construction sector, focusing on building single-family homes, townhomes, and condominiums. The company also provides services related to mortgage and closing processes, facilitating a comprehensive experience for homebuyers. Founded in 1978 by Donald R., D.R. Horton has established itself as a leading name in the industry.
