Dream Finders Homes (NASDAQ:DFH) Trading 9.3% Higher - Time to Buy?

Key Points

• Dream Finders Homes' stock rose by 9.3% to $28.38, despite a significant drop in trading volume, which was down 59% from the average.
• The company's quarterly earnings report showed an EPS of $0.57, which was below analysts' expectations of $0.65, yet revenue increased by 9% year-over-year.
• Insider trading activity indicates a 0.52% ownership reduction by CEO Patrick O. Zalupski, who sold 10,416 shares recently, amidst high institutional ownership at 95.55% of the stock.

Dream Finders Homes, Inc. (NASDAQ:DFH - Get Free Report) shares traded up 9.3% on Wednesday . The stock traded as high as $28.17 and last traded at $28.38. 186,232 shares were traded during mid-day trading, a decline of 59% from the average session volume of 454,664 shares. The stock had previously closed at $25.97.

Analyst Ratings Changes

Separately, Wedbush reaffirmed a "neutral" rating and issued a $26.00 target price on shares of Dream Finders Homes in a research note on Tuesday, May 6th.

Dream Finders Homes Stock Up 13.0%

The company has a market capitalization of $2.73 billion, a price-to-earnings ratio of 9.59, a P/E/G ratio of 1.28 and a beta of 1.90. The stock's fifty day moving average price is $25.40 and its 200-day moving average price is $23.61.

Dream Finders Homes (NASDAQ:DFH - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.57 EPS for the quarter, missing analysts' consensus estimates of $0.65 by ($0.08). Dream Finders Homes had a return on equity of 30.18% and a net margin of 7.65%. During the same quarter in the prior year, the firm earned $0.83 EPS. Dream Finders Homes's revenue was up 9.0% compared to the same quarter last year. Analysts anticipate that Dream Finders Homes, Inc. will post 3.31 EPS for the current year.

Insider Activity

In related news, CEO Patrick O. Zalupski sold 10,416 shares of the company's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $28.47, for a total transaction of $296,543.52. Following the completion of the sale, the chief executive officer owned 1,989,091 shares of the company's stock, valued at $56,629,420.77. This represents a 0.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders have sold a total of 31,264 shares of company stock valued at $855,698 over the last three months. Insiders own 68.16% of the company's stock.

Institutional Trading of Dream Finders Homes

Several institutional investors have recently added to or reduced their stakes in the stock. Eukles Asset Management purchased a new stake in shares of Dream Finders Homes during the 1st quarter valued at $34,000. Quarry LP bought a new position in Dream Finders Homes in the 1st quarter worth about $40,000. Nisa Investment Advisors LLC boosted its stake in Dream Finders Homes by 164.3% in the 2nd quarter. Nisa Investment Advisors LLC now owns 1,792 shares of the company's stock worth $45,000 after purchasing an additional 1,114 shares during the period. Russell Investments Group Ltd. boosted its stake in Dream Finders Homes by 11.9% in the 2nd quarter. Russell Investments Group Ltd. now owns 3,777 shares of the company's stock worth $95,000 after purchasing an additional 402 shares during the period. Finally, GAMMA Investing LLC boosted its stake in Dream Finders Homes by 907.1% in the 1st quarter. GAMMA Investing LLC now owns 5,962 shares of the company's stock worth $135,000 after purchasing an additional 5,370 shares during the period. 95.55% of the stock is currently owned by institutional investors.

About Dream Finders Homes

Dream Finders Homes, Inc operates as a holding company for Dream Finders Homes LLC that engages in homebuilding business in the United States. The company operates through four segments: Southeast, Mid-Atlantic, Midwest, and Financial Services. It designs, constructs, and sells single-family entry-level, and first-time and second time move-up homes, as well as active adult homes and custom homes in Florida, Texas, Tennessee, North Carolina, South Carolina, Georgia, Colorado, and the Washington, DC metropolitan area.

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