Royal Bank Of Canada Issues Pessimistic Forecast for D.R. Horton (NYSE:DHI) Stock Price

Key Points

• Royal Bank of Canada cut its D.R. Horton price target from $125 to $119 and maintained an “underperform” rating, implying 14.41% downside from the prior close.
• Analyst sentiment remains mixed but leans cautious: D.R. Horton has an overall “Hold” consensus rating and an average price target of $158.36, based on five Buy, eleven Hold, and two Sell ratings.
• D.R. Horton shares rose 4.0% to $139.04, while the company’s latest earnings exceeded expectations with $3.20 in EPS versus a $3.02 consensus estimate and $9.23 billion in revenue.

D.R. Horton (NYSE:DHI - Get Free Report) had its price objective reduced by stock analysts at Royal Bank Of Canada from $125.00 to $119.00 in a research report issued on Thursday, Benzinga reports. The firm currently has an "underperform" rating on the construction company's stock. Royal Bank Of Canada's target price points to a potential downside of 14.41% from the company's previous close.

Other equities analysts have also issued research reports about the company. Evercore set a $166.00 price target on D.R. Horton in a report on Friday, September 25th. Citigroup reaffirmed a "neutral" rating on shares of D.R. Horton in a research note on Wednesday, July 22nd. Morgan Stanley started coverage on D.R. Horton in a research report on Thursday, October 1st. They set an "equal weight" rating and a $151.00 target price on the stock. Truist Financial cut their price objective on D.R. Horton from $150.00 to $140.00 and set a "hold" rating on the stock in a report on Wednesday, September 16th. Finally, Barclays decreased their price objective on shares of D.R. Horton from $141.00 to $130.00 and set an "equal weight" rating for the company in a research note on Tuesday, October 6th. Five research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $158.36.

D.R. Horton Stock Up 4.0%

NYSE:DHI traded up $5.40 during mid-day trading on Thursday, hitting $139.04. The stock had a trading volume of 1,003,510 shares, compared to its average volume of 2,690,742. The company has a market capitalization of $38.89 billion, a PE ratio of 13.21, a PEG ratio of 2.10 and a beta of 1.35. The stock has a 50-day simple moving average of $141.93 and a two-hundred day simple moving average of $146.43. D.R. Horton has a twelve month low of $130.40 and a twelve month high of $170.79. The company has a current ratio of 6.43, a quick ratio of 1.04 and a debt-to-equity ratio of 0.29.

D.R. Horton (NYSE:DHI - Get Free Report) last posted its earnings results on Tuesday, July 21st. The construction company reported $3.20 earnings per share for the quarter, topping the consensus estimate of $3.02 by $0.18. The firm had revenue of $9.23 billion during the quarter, compared to analysts' expectations of $9.10 billion. D.R. Horton had a return on equity of 12.47% and a net margin of 9.15%. The firm's revenue was up .0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.36 earnings per share. On average, equities research analysts anticipate that D.R. Horton will post 10.43 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. William Allan Corp grew its stake in shares of D.R. Horton by 0.3% in the 3rd quarter. William Allan Corp now owns 27,548 shares of the construction company's stock valued at $3,764,000 after buying an additional 77 shares in the last quarter. Hudock Inc. raised its stake in D.R. Horton by 16.1% during the 3rd quarter. Hudock Inc. now owns 2,083 shares of the construction company's stock valued at $285,000 after purchasing an additional 289 shares during the last quarter. West Wealth Group LLC bought a new stake in shares of D.R. Horton in the 3rd quarter worth approximately $1,835,000. Sanders Morris Harris LLC acquired a new position in shares of D.R. Horton in the 3rd quarter valued at $2,225,000. Finally, First Citizens Bank & Trust Co. lifted its stake in D.R. Horton by 322.7% during the third quarter. First Citizens Bank & Trust Co. now owns 7,038 shares of the construction company's stock worth $962,000 after purchasing an additional 5,373 shares during the period. 90.63% of the stock is owned by institutional investors and hedge funds.

D.R. Horton Company Profile

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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