Bank of America Corp DE Makes New Investment in D.R. Horton, Inc. $DHI

Key Points

• Bank of America acquired 2.93 million D.R. Horton shares in the second quarter, valued at approximately $477.4 million and representing about 1.05% of the homebuilder.
• Institutional ownership remains high at 90.63%, with Capital World Investors increasing its stake and BlackRock and Norges Bank establishing new positions.
• D.R. Horton exceeded quarterly earnings and revenue expectations, while analysts maintained a consensus “Hold” rating with an average price target of $166.08. The company also announced a quarterly dividend of $0.45 per share.

Bank of America Corp DE acquired a new stake in D.R. Horton, Inc. (NYSE:DHI - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund acquired 2,930,736 shares of the construction company's stock, valued at approximately $477,358,000. Bank of America Corp DE owned approximately 1.05% of D.R. Horton as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Capital World Investors lifted its stake in D.R. Horton by 22.1% during the 4th quarter. Capital World Investors now owns 36,948,434 shares of the construction company's stock valued at $5,321,849,000 after acquiring an additional 6,695,592 shares in the last quarter. BlackRock Inc. purchased a new stake in shares of D.R. Horton during the 2nd quarter valued at approximately $4,067,842,000. Capital Research Global Investors lifted its position in shares of D.R. Horton by 0.3% during the fourth quarter. Capital Research Global Investors now owns 4,647,088 shares of the construction company's stock worth $669,330,000 after acquiring an additional 13,155 shares in the last quarter. Norges Bank bought a new position in D.R. Horton in the 4th quarter worth about $649,305,000. Finally, Dimensional Fund Advisors LP grew 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 acquiring an additional 21,514 shares in the last quarter. 90.63% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms recently weighed in on DHI. Weiss Ratings upgraded shares of D.R. Horton from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, July 20th. Citigroup restated a "neutral" rating on shares of D.R. Horton in a report on Wednesday, July 22nd. Wells Fargo & Company cut their price target on shares of D.R. Horton from $155.00 to $145.00 and set an "equal weight" rating on the stock in a report on Friday. BTIG Research set a $184.00 target price on D.R. Horton in a report on Wednesday, July 22nd. Finally, Barclays increased their price target on shares of D.R. Horton from $140.00 to $141.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 14th. Five investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $166.08.

D.R. Horton Stock Up 0.6%

Shares of DHI stock opened at $140.19 on Wednesday. The company has a current ratio of 6.43, a quick ratio of 1.04 and a debt-to-equity ratio of 0.29. The stock has a market cap of $39.21 billion, a P/E ratio of 13.34, a P/E/G ratio of 2.22 and a beta of 1.37. D.R. Horton, Inc. has a 12 month low of $131.75 and a 12 month high of $177.58. The company has a 50 day simple moving average of $146.32 and a two-hundred day simple moving average of $147.48.

D.R. Horton (NYSE:DHI - Get Free Report) last announced its quarterly earnings data on Tuesday, July 21st. The construction company reported $3.20 earnings per share (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 return on equity of 12.47% and a net margin of 9.15%.The firm's revenue was up .0% on a year-over-year basis. During the same period in the previous year, the company posted $3.36 EPS. On average, research analysts expect that D.R. Horton, Inc. will post 10.45 earnings per share for the current year.

D.R. Horton Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 13th. Stockholders of record on Thursday, August 6th were issued a $0.45 dividend. The ex-dividend date was Thursday, August 6th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 1.3%. D.R. Horton's payout ratio is 17.13%.

D.R. Horton Profile

D.R. Horton, Inc is a residential home construction company that designs, builds and sells single-family homes and townhomes in the United States. Its homes are offered under brands including D.R. Horton, Emerald Homes, Express and Freedom Homes, serving a range of buyers from entry-level and first-time purchasers to move-up and active-adult customers.

In addition to homebuilding, the company operates businesses that support the residential real estate process. These include mortgage financing through DHI Mortgage, title services through DHI Title, and insurance-related services.

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