D.R. Horton (NYSE:DHI) Given New $114.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut D.R. Horton’s price target to $114 from $119 and maintained an “underperform” rating, implying 21.31% downside from the prior close.
• Analyst sentiment remains cautious: D.R. Horton has a consensus “hold” rating and average price target of $152.60, despite five buy, twelve hold and three sell ratings.
• The company’s latest quarter showed mixed results, with EPS of $2.67 missing the $3.01 consensus while revenue of $9.37 billion exceeded estimates but fell 3.2% year over year; higher mortgage rates and buyer incentives continue to pressure demand and margins.

D.R. Horton (NYSE:DHI - Get Free Report) had its target price reduced by stock analysts at Royal Bank Of Canada from $119.00 to $114.00 in a note issued to investors on Friday, Benzinga reports. The firm currently has an "underperform" rating on the construction company's stock. Royal Bank Of Canada's price target points to a potential downside of 21.31% from the stock's previous close.

A number of other brokerages also recently issued reports on DHI. Bank of America cut their price target on D.R. Horton from $150.00 to $145.00 in a report on Wednesday, October 7th. Truist Financial cut their target price on D.R. Horton from $150.00 to $140.00 and set a "hold" rating on the stock in a research note on Wednesday, September 16th. Barclays decreased their price target on shares of D.R. Horton from $130.00 to $125.00 and set an "equal weight" rating for the company in a research report on Friday. Evercore lowered their price target on shares of D.R. Horton from $171.00 to $166.00 in a report on Thursday, October 8th. Finally, Citigroup cut their price objective on shares of D.R. Horton from $160.00 to $150.00 and set a "neutral" rating on the stock in a research report on Thursday, October 15th. Five equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $152.60.

D.R. Horton Trading Down 1.1%

DHI stock traded down $1.66 during mid-day trading on Friday, reaching $144.87. The company had a trading volume of 591,443 shares, compared to its average volume of 2,718,154. The company has a market capitalization of $40.52 billion, a PE ratio of 13.76, a price-to-earnings-growth ratio of 2.23 and a beta of 1.35. The firm has a 50 day moving average of $140.80 and a 200 day moving average of $147.77. D.R. Horton has a 12 month low of $130.40 and a 12 month high of $170.79. The company has a debt-to-equity ratio of 0.29, a current ratio of 6.43 and a quick ratio of 1.04.

D.R. Horton (NYSE:DHI - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The construction company reported $2.67 EPS for the quarter, missing the consensus estimate of $3.01 by ($0.34). The firm had revenue of $9.37 billion for the quarter, compared to analysts' expectations of $9.07 billion. D.R. Horton had a return on equity of 12.47% and a net margin of 9.15%. The company's revenue for the quarter was down 3.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.04 earnings per share. On average, equities analysts predict that D.R. Horton will post 10.43 earnings per share for the current fiscal year.

Hedge Funds Weigh In On D.R. Horton

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Caitlin John LLC acquired a new position in shares of D.R. Horton in the second quarter valued at about $25,000. Fiduciary Financial Advisors purchased a new position in shares of D.R. Horton in the second quarter worth about $25,000. Compass Wealth Management LLC purchased a new stake in D.R. Horton in the third quarter valued at approximately $27,000. Bell Investment Advisors Inc acquired a new position in D.R. Horton in the 2nd quarter worth approximately $32,000. Finally, Compass Financial Management LLC purchased a new position in D.R. Horton during the 2nd quarter worth approximately $31,000. Hedge funds and other institutional investors own 90.63% of the company's stock.

More D.R. Horton News

Here are the key news stories impacting D.R. Horton this week:

• Positive Sentiment: D.R. Horton raised its quarterly dividend 11.1% to $0.50 per share, equivalent to $2.00 annually and a yield of approximately 1.4%. The increase signals confidence in the company’s cash generation and returns to shareholders.
• Positive Sentiment: The builder is expanding its use of robotics in home construction, which could improve productivity, reduce labor costs and support margins over time. Inside giant homebuilder D.R. Horton's bet on robotic homebuilding
• Neutral Sentiment: D.R. Horton projects fiscal 2027 revenue of $30 billion to $32 billion and controls 77% of its lot supply through purchase contracts. The land strategy provides supply visibility and flexibility, but the outlook reflects continued pressure from elevated mortgage rates. D.R. Horton: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Fiscal fourth-quarter earnings per share were $2.67, below the roughly $3.01–$3.03 analyst consensus and down from $3.04 a year earlier. Revenue of $9.37 billion beat estimates of $9.07 billion but declined 3.2% year over year, highlighting a widening gap between sales and profitability.
• Negative Sentiment: Higher mortgage rates reduced housing demand, pressured orders and increased cancellations. Management warned that mortgage-rate pressure and a softer housing environment could persist into fiscal 2027, while buyer incentives continued to squeeze margins. D.R. Horton Profit Down as Mortgage Rates Weigh
• Negative Sentiment: D.R. Horton reported a $91 million impairment, adding to concerns about profitability and the quality of the near-term earnings outlook. Barclays also lowered its price target from $130 to $125 while maintaining an equal-weight rating, implying limited upside based on its assumptions.

D.R. Horton Company Profile

D.R. Horton, Inc is a residential construction company that builds and sells single-family detached and attached homes in the United States. Its offerings include entry-level, move-up, luxury and active-adult housing, serving a range of homebuyers through brands such as D.R. Horton, Express Homes, Emerald Homes and Freedom Homes.

The company's operations also include land acquisition and development, home financing and title services. Through subsidiaries and affiliated businesses, D.R.

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