D.R. Horton (NYSE:DHI) Shares Cross Below Two Hundred Day Moving Average After Analyst Downgrade

D.R. Horton, Inc. (NYSE:DHI) passed below its 200-day moving average during trading on Wednesday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock has a 200-day moving average of $147.51 and traded as low as $146.40. D.R. Horton shares last traded at $147.2340, with a volume of 3,342,717 shares traded.

Several other equities analysts have also issued reports on DHI. Wells Fargo & Company lowered their price target on D.R. Horton from $145.00 to $140.00 and set an “equal weight” rating on the stock in a research note on Friday, October 16th. Weiss Ratings downgraded D.R. Horton from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, November 2nd. Citigroup lifted their price objective on D.R. Horton from $150.00 to $152.00 and gave the stock a “neutral” rating in a report on Monday, November 2nd. Keefe, Bruyette & Woods cut their target price on D.R. Horton from $160.00 to $152.00 in a research note on Thursday, October 22nd. Finally, Morgan Stanley cut their target price on D.R. Horton from $151.00 to $130.00 and set an “equal weight” rating for the company in a research note on Tuesday, November 3rd. Five investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $151.33.

Key Stories Impacting D.R. Horton

Investors following DHI have been watching these stories:

• Neutral Sentiment: A dividend analysis reviews D.R. Horton’s payout, but the available article details do not specify the yield, payout ratio, or a dividend change, so the near-term stock impact is unclear. D.R. Horton Inc’s Dividend Analysis
• Negative Sentiment: Zacks Research cut its rating on D.R. Horton from “hold” to “strong sell,” adding to concerns about the stock’s outlook. Zacks Research ratings
• Negative Sentiment: Melius Research reiterated a “sell” rating and a $128 price target, below the $145.41 price cited in the coverage. Its estimates project fiscal 2027 EPS of $7.57 and fiscal 2028 EPS of $9.12, versus the reported current-year consensus estimate of $10.48, signaling expected earnings pressure. The multiple reports repeat the same Melius forecast and rating. D.R. Horton analyst coverage

Institutional Investors Weigh In On D.R. Horton

A number of institutional investors have recently added to or reduced their stakes in DHI. Empowered Funds LLC boosted its stake in D.R. Horton by 10.5% in the 3rd quarter. Empowered Funds LLC now owns 170,827 shares of the construction company’s stock valued at $23,344,000 after buying an additional 16,280 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund grew its position in D.R. Horton by 1,027.4% in the third quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 185,885 shares of the construction company’s stock valued at $25,401,000 after acquiring an additional 169,397 shares during the period. Hartree Partners LP acquired a new position in D.R. Horton during the third quarter worth $683,000. State Board of Administration of Florida Retirement System raised its stake in D.R. Horton by 7.1% during the third quarter. State Board of Administration of Florida Retirement System now owns 243,608 shares of the construction company’s stock worth $33,289,000 after acquiring an additional 16,069 shares in the last quarter. Finally, Mosaic Family Wealth Partners LLC lifted its holdings in shares of D.R. Horton by 22.1% during the third quarter. Mosaic Family Wealth Partners LLC now owns 8,385 shares of the construction company’s stock valued at $1,146,000 after acquiring an additional 1,518 shares during the period. 90.63% of the stock is owned by institutional investors and hedge funds.

D.R. Horton Price Performance

The company’s 50 day moving average price is $141.65 and its 200 day moving average price is $147.46. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.95 and a current ratio of 6.01. The company has a market cap of $40.67 billion, a price-to-earnings ratio of 14.34, a P/E/G ratio of 1.88 and a beta of 1.35.

D.R. Horton (NYSE:DHI) last announced its earnings results on Thursday, October 29th. The construction company reported $2.67 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.01 by ($0.34). D.R. Horton had a return on equity of 11.93% and a net margin of 8.74%. The firm had revenue of $9.37 billion for the quarter, compared to analyst estimates of $9.07 billion. During the same quarter last year, the business earned $3.04 EPS. The company’s revenue for the quarter was down 3.2% compared to the same quarter last year. On average, equities research analysts predict that D.R. Horton, Inc. will post 9.58 earnings per share for the current fiscal year.

D.R. Horton Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 12th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Thursday, November 12th. This is an increase from D.R. Horton’s previous quarterly dividend of $0.45. D.R. Horton’s dividend payout ratio (DPR) is presently 17.75%.

About D.R. Horton

D.R. Horton, Inc. is a U.S. homebuilder founded in 1978 by Donald R. Horton. Headquartered in Arlington, Texas, the company builds and sells homes in markets across the United States. Its homebuilding business offers single-family homes and townhomes for buyers with a range of needs and budgets. D.R. Horton markets homes under brands including D.R. Horton, Express, Emerald and Freedom, which serves active-adult buyers. The company also provides mortgage financing and title services to homebuyers through its financial-services operations, and has a home-rental business.