D.R. Horton (NYSE:DHI) Sets New 52-Week Low – Should You Sell?

D.R. Horton, Inc. (NYSE:DHI)’s stock price hit a new 52-week low during trading on Wednesday. The company traded as low as $130.40 and last traded at $130.89, with a volume of 500,875 shares. The stock had previously closed at $135.45.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the company. BTIG Research reaffirmed a “buy” rating and set a $174.00 price target on shares of D.R. Horton in a research note on Tuesday, September 22nd. Royal Bank Of Canada reiterated a “mixed” rating on shares of D.R. Horton in a research report on Wednesday, July 22nd. Weiss Ratings lowered shares of D.R. Horton from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, September 16th. Morgan Stanley started coverage on shares of D.R. Horton in a report on Thursday, October 1st. They set an “equal weight” rating and a $151.00 target price on the stock. Finally, The Goldman Sachs Group reissued a “buy” rating and set a $182.00 price target on shares of D.R. Horton in a research report on Monday. Five equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $158.79.

D.R. Horton Trading Down 2.5%

The company has a debt-to-equity ratio of 0.29, a current ratio of 6.43 and a quick ratio of 1.04. The stock’s 50-day simple moving average is $142.30 and its two-hundred day simple moving average is $146.45. The firm has a market capitalization of $36.93 billion, a P/E ratio of 12.55, a price-to-earnings-growth ratio of 2.08 and a beta of 1.35.

D.R. Horton (NYSE:DHI) last announced its quarterly earnings results on Tuesday, July 21st. The construction company reported $3.20 EPS for the quarter, beating analysts’ consensus estimates of $3.02 by $0.18. D.R. Horton had a return on equity of 12.47% and a net margin of 9.15%. The company had revenue of $9.23 billion during the quarter, compared to analyst estimates of $9.10 billion. During the same period in the prior year, the company earned $3.36 earnings per share. The firm’s revenue was up .0% on a year-over-year basis. Equities research analysts expect that D.R. Horton, Inc. will post 10.44 EPS for the current year.

D.R. Horton Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 13th. Investors of record on Thursday, August 6th were paid a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 1.4%. The ex-dividend date was Thursday, August 6th. D.R. Horton’s payout ratio is currently 17.13%.

Hedge Funds Weigh In On D.R. Horton

A number of institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in D.R. Horton during the 2nd quarter valued at $4,067,842,000. Bank of America Corp DE purchased a new position in shares of D.R. Horton in the second quarter worth about $477,358,000. Bank of New York Mellon Corp purchased a new stake in D.R. Horton during the 2nd quarter worth about $294,292,000. Legal & General Group Plc bought a new position in D.R. Horton in the 2nd quarter valued at $280,664,000. Finally, Deutsche Bank AG purchased a new position in shares of D.R. Horton during the second quarter worth approximately $201,077,000. Institutional investors and hedge funds own 90.63% of the company’s stock.

About D.R. Horton

D.R. Horton, Inc is one of the largest homebuilding companies in the United States. Founded in 1978 by Donald R. Horton, the company develops and constructs single-family homes, townhomes and other residential properties for a range of buyers, including first-time, move-up and active-adult households.

The company operates through several homebuilding brands, including D.R. Horton, Express Homes, Emerald Homes and Freedom Homes. Its offerings generally span entry-level and affordable homes, move-up residences, luxury properties and age-qualified communities.