Neo Ivy Capital Management Acquires New Shares in D.R. Horton, Inc. (NYSE:DHI)

Key Points

• Neo Ivy Capital Management has acquired 20,902 shares of D.R. Horton, valued at approximately $2.66 million, making it the company's 22nd largest holding.
• Analysts have set varying price targets for D.R. Horton, with estimates ranging from $150 to $187, reflecting concerns about a potential decline in U.S. new home sales and lower consumer confidence.
• D.R. Horton announced a quarterly dividend of $0.40 per share, yielding 1.10%, to be paid on August 14th for shareholders of record on August 7th.

Neo Ivy Capital Management bought a new position in D.R. Horton, Inc. (NYSE:DHI - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 20,902 shares of the construction company's stock, valued at approximately $2,657,000. D.R. Horton comprises 0.8% of Neo Ivy Capital Management's holdings, making the stock its 22nd biggest holding.

A number of other hedge funds have also recently modified their holdings of DHI. Bank Pictet & Cie Europe AG increased its holdings in shares of D.R. Horton by 1.6% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 319,166 shares of the construction company's stock valued at $44,626,000 after purchasing an additional 5,052 shares during the last quarter. Proficio Capital Partners LLC boosted its holdings in D.R. Horton by 59.5% in the fourth quarter. Proficio Capital Partners LLC now owns 1,880 shares of the construction company's stock valued at $263,000 after purchasing an additional 701 shares during the period. LPL Financial LLC raised its stake in D.R. Horton by 8.0% in the fourth quarter. LPL Financial LLC now owns 236,514 shares of the construction company's stock valued at $33,069,000 after buying an additional 17,550 shares in the last quarter. Zions Bancorporation N.A. raised its stake in D.R. Horton by 49.9% in the fourth quarter. Zions Bancorporation N.A. now owns 3,206 shares of the construction company's stock valued at $448,000 after buying an additional 1,067 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in D.R. Horton by 4.5% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 467,676 shares of the construction company's stock valued at $65,423,000 after buying an additional 19,960 shares in the last quarter. Hedge funds and other institutional investors own 90.63% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently issued reports on DHI. UBS Group raised their price target on D.R. Horton from $176.00 to $187.00 and gave the stock a "buy" rating in a report on Wednesday. BTIG Research reduced their price target on D.R. Horton from $171.00 to $150.00 and set a "buy" rating on the stock in a research note on Wednesday, April 16th. Their comments are based on a broader research note on Homebuilders ahead of the industry’s start of the earnings season. The firm is projecting a 7% decline in U.S. new home sales and a 27% average decline in earnings due to lower consumer confidence as a result of heightened uncertainty about the future in terms of both income/job security and cost of living along with still-relatively high interest rates. The Goldman Sachs Group cut their target price on D.R. Horton from $173.00 to $150.00 and set a "buy" rating on the stock in a research report on Tuesday, April 15th. JMP Securities lowered their price target on D.R. Horton from $210.00 to $180.00 and set a "market outperform" rating for the company in a report on Monday, April 21st. Finally, Keefe, Bruyette & Woods raised their target price on D.R. Horton from $135.00 to $161.00 and gave the company a "market perform" rating in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, six have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, D.R. Horton has an average rating of "Hold" and an average price target of $153.23.

Insider Activity

In other D.R. Horton news, Director Michael R. Buchanan sold 2,150 shares of D.R. Horton stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $127.70, for a total transaction of $274,555.00. Following the completion of the sale, the director owned 2,193 shares of the company's stock, valued at $280,046.10. This trade represents a 49.50% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 0.54% of the stock is owned by company insiders.

D.R. Horton Stock Performance

Shares of DHI traded up $0.76 during mid-day trading on Friday, reaching $145.46. 3,708,392 shares of the company's stock traded hands, compared to its average volume of 4,832,295. The business's 50-day moving average price is $128.00 and its 200-day moving average price is $129.22. The stock has a market capitalization of $43.36 billion, a P/E ratio of 11.66, a price-to-earnings-growth ratio of 3.15 and a beta of 1.38. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.15 and a current ratio of 7.06. D.R. Horton, Inc. has a 12 month low of $110.44 and a 12 month high of $199.85.

D.R. Horton (NYSE:DHI - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The construction company reported $3.36 EPS for the quarter, topping the consensus estimate of $2.90 by $0.46. The firm 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 firm's quarterly revenue was down 7.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $4.10 earnings per share. Equities analysts predict that D.R. Horton, Inc. will post 13.04 earnings per share for the current year.

D.R. Horton Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Thursday, August 7th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 1.10%. The ex-dividend date of this dividend is Thursday, August 7th. D.R. Horton's payout ratio is 12.83%.

D.R. Horton Company Profile

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.