Melius Research Begins Coverage on D.R. Horton (NYSE:DHI)

Key Points

• Melius Research initiated coverage of D.R. Horton with a “sell” rating and a $128 price target, implying 3.78% downside from the stock’s current price.
• D.R. Horton shares opened at $133.03, down 1.5%, and remain near their 52-week low of $131.75. Overall analyst sentiment is “hold,” with an average price target of $159.36.
• The company exceeded quarterly expectations, reporting $3.20 in earnings per share versus a $3.02 consensus estimate and $9.23 billion in revenue versus $9.10 billion expected; institutional investors own 90.63% of the stock.

Research analysts at Melius Research began coverage on shares of D.R. Horton (NYSE:DHI - Get Free Report) in a report issued on Tuesday, Briefing.com reports. The firm set a "sell" rating and a $128.00 price target on the construction company's stock. Melius Research's price target points to a potential downside of 3.78% from the company's current price.

Other research analysts have also recently issued research reports about the stock. Royal Bank Of Canada restated a "mixed" rating on shares of D.R. Horton in a report on Wednesday, July 22nd. Keefe, Bruyette & Woods reduced their price target on D.R. Horton from $167.00 to $160.00 and set a "market perform" rating for the company in a report on Tuesday, September 22nd. Truist Financial lowered their price target on shares of 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. BTIG Research reaffirmed a "buy" rating and set a $174.00 price objective on shares of D.R. Horton in a report on Tuesday, September 22nd. Finally, Wells Fargo & Company cut their target price on shares of D.R. Horton from $155.00 to $145.00 and set an "equal weight" rating for the company in a research report on Friday, September 11th. Five equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $159.36.

D.R. Horton Stock Down 1.5%

DHI stock opened at $133.03 on Tuesday. The firm has a 50-day simple moving average of $143.77 and a 200-day simple moving average of $146.54. D.R. Horton has a 52 week low of $131.75 and a 52 week high of $176.04. The stock has a market capitalization of $37.21 billion, a P/E ratio of 12.66, a P/E/G ratio of 1.92 and a beta of 1.35. The company has a quick ratio of 1.04, a current ratio of 6.43 and a debt-to-equity ratio of 0.29.

D.R. Horton (NYSE:DHI - Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The construction company reported $3.20 EPS for the quarter, beating analysts' consensus estimates of $3.02 by $0.18. The company had revenue of $9.23 billion during the quarter, compared to the consensus estimate of $9.10 billion. D.R. Horton had a net margin of 9.15% and a return on equity of 12.47%. D.R. Horton's quarterly revenue was up .0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.36 EPS. Equities analysts forecast that D.R. Horton will post 10.46 earnings per share for the current fiscal year.

Institutional Investors Weigh In On D.R. Horton

Several institutional investors and hedge funds have recently added to or reduced their stakes in DHI. BlackRock Inc. acquired a new stake in D.R. Horton in the 2nd quarter valued at $4,067,842,000. Bank of America Corp DE bought a new position in D.R. Horton in the 2nd quarter worth about $477,358,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in D.R. Horton by 4.4% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,903,786 shares of the construction company's stock worth $472,969,000 after acquiring an additional 122,434 shares during the period. Dimensional Fund Advisors LP boosted its stake in D.R. Horton by 0.7% during the first quarter. Dimensional Fund Advisors LP now owns 3,081,672 shares of the construction company's stock valued at $422,734,000 after buying an additional 21,514 shares in the last quarter. Finally, Principal Financial Group Inc. raised its holdings in shares of D.R. Horton by 2.3% in the 1st quarter. Principal Financial Group Inc. now owns 2,155,581 shares of the construction company's stock worth $295,789,000 after purchasing an additional 48,723 shares in the last quarter. 90.63% of the stock is currently owned by institutional investors and hedge funds.

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.

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