Bank of America Issues Pessimistic Forecast for D.R. Horton (NYSE:DHI) Stock Price

Key Points

• Bank of America has lowered its price target for D.R. Horton from $175.00 to $165.00, while maintaining a "neutral" rating on the stock, suggesting a potential upside of 9.17% from its current price.
• Despite the pessimistic forecast from Bank of America, other analysts like Wells Fargo and UBS have increased their target prices, indicating mixed sentiments in the market.
• D.R. Horton reported an earnings per share (EPS) of $3.36 for the last quarter, exceeding estimates, although their quarterly revenue experienced a 7.4% decline year-over-year.

D.R. Horton (NYSE:DHI - Get Free Report) had its price objective dropped by equities researchers at Bank of America from $175.00 to $165.00 in a report released on Friday,Benzinga reports. The firm presently has a "neutral" rating on the construction company's stock. Bank of America's price objective would indicate a potential upside of 9.17% from the stock's current price.

A number of other research analysts also recently weighed in on the company. Weiss Ratings reiterated a "hold (c+)" rating on shares of D.R. Horton in a report on Wednesday. Wedbush boosted their target price on D.R. Horton from $155.00 to $170.00 and gave the company a "neutral" rating in a research note on Wednesday, July 23rd. UBS Group boosted their target price on D.R. Horton from $176.00 to $187.00 and gave the company a "buy" rating in a research note on Wednesday, July 23rd. Royal Bank Of Canada boosted their target price on D.R. Horton from $105.00 to $117.00 and gave the company an "underperform" rating in a research note on Wednesday, July 23rd. Finally, Wells Fargo & Company boosted their target price on D.R. Horton from $175.00 to $190.00 and gave the company an "overweight" rating in a research note on Tuesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $156.54.

D.R. Horton Price Performance

Shares of DHI traded down $0.24 during midday trading on Friday, reaching $151.15. The stock had a trading volume of 889,188 shares, compared to its average volume of 3,742,981. D.R. Horton has a 52 week low of $110.44 and a 52 week high of $195.50. The company has a debt-to-equity ratio of 0.29, a current ratio of 7.06 and a quick ratio of 1.19. The firm's 50 day moving average price is $167.11 and its 200-day moving average price is $140.72. The company has a market capitalization of $45.06 billion, a P/E ratio of 12.13, a P/E/G ratio of 3.30 and a beta of 1.40.

D.R. Horton (NYSE:DHI - Get Free Report) last issued its earnings results on Tuesday, July 22nd. The construction company reported $3.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.90 by $0.46. The business had revenue of $9.23 billion for the quarter, compared to analysts' expectations of $8.80 billion. D.R. Horton had a return on equity of 15.74% and a net margin of 11.46%.The company's quarterly revenue was down 7.4% on a year-over-year basis. During the same period in the previous year, the firm posted $4.10 EPS. D.R. Horton has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. On average, analysts forecast that D.R. Horton will post 13.04 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Chairman David V. Auld sold 30,000 shares of the business's stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $182.21, for a total transaction of $5,466,300.00. Following the completion of the transaction, the chairman owned 815,672 shares of the company's stock, valued at approximately $148,623,595.12. The trade was a 3.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Aron M. Odom sold 1,376 shares of the business's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $183.00, for a total value of $251,808.00. Following the transaction, the senior vice president owned 6,457 shares in the company, valued at $1,181,631. This represents a 17.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 32,376 shares of company stock valued at $5,898,848. Insiders own 0.54% of the company's stock.

Institutional Investors Weigh In On D.R. Horton

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in shares of D.R. Horton by 1.9% in the 1st quarter. Vanguard Group Inc. now owns 33,664,013 shares of the construction company's stock valued at $4,279,706,000 after purchasing an additional 642,642 shares during the period. State Street Corp lifted its stake in shares of D.R. Horton by 0.7% in the 2nd quarter. State Street Corp now owns 12,636,264 shares of the construction company's stock valued at $1,629,067,000 after purchasing an additional 92,219 shares during the period. Norges Bank acquired a new position in shares of D.R. Horton in the 2nd quarter valued at $494,278,000. Dimensional Fund Advisors LP lifted its stake in shares of D.R. Horton by 1.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,509,407 shares of the construction company's stock valued at $446,093,000 after purchasing an additional 33,412 shares during the period. Finally, Franklin Resources Inc. lifted its stake in shares of D.R. Horton by 16.4% in the 2nd quarter. Franklin Resources Inc. now owns 3,200,176 shares of the construction company's stock valued at $412,567,000 after purchasing an additional 450,362 shares during the period. 90.63% of the stock is currently owned by institutional investors.

About D.R. Horton

D.R. Horton, Inc operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R.

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