Parnassus Investments LLC Trims Holdings in D.R. Horton, Inc. $DHI

Key Points

• Parnassus Investments LLC drastically reduced its stake in D.R. Horton by 68.2%, selling over 2.7 million shares, leaving it with 1.3 million shares valued at approximately $165 million.
• Despite Parnassus's decrease, other hedge funds, such as Edgestream Partners, significantly increased their positions, with Edgestream raising its stake by 1,710%.
• Analysts have raised their price targets for D.R. Horton, with Wells Fargo increasing its target from $160 to $175 and UBS from $176 to $187, indicating a positive outlook for the stock.

Parnassus Investments LLC lessened its holdings in shares of D.R. Horton, Inc. (NYSE:DHI - Free Report) by 68.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,301,393 shares of the construction company's stock after selling 2,797,095 shares during the quarter. Parnassus Investments LLC owned approximately 0.42% of D.R. Horton worth $165,446,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Bank Pictet & Cie Europe AG increased its position in 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 worth $44,626,000 after buying an additional 5,052 shares in the last quarter. The Manufacturers Life Insurance Company raised its stake in D.R. Horton by 0.6% during the 4th quarter. The Manufacturers Life Insurance Company now owns 178,449 shares of the construction company's stock worth $24,951,000 after acquiring an additional 1,148 shares during the period. AQR Capital Management LLC lifted its holdings in D.R. Horton by 9.9% during the fourth quarter. AQR Capital Management LLC now owns 249,784 shares of the construction company's stock valued at $34,925,000 after purchasing an additional 22,417 shares in the last quarter. Schonfeld Strategic Advisors LLC boosted its position in shares of D.R. Horton by 271.6% in the fourth quarter. Schonfeld Strategic Advisors LLC now owns 40,524 shares of the construction company's stock worth $5,666,000 after purchasing an additional 64,133 shares during the period. Finally, Voleon Capital Management LP purchased a new stake in shares of D.R. Horton in the fourth quarter worth $1,976,000. 90.63% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Michael R. Buchanan sold 2,150 shares of D.R. Horton stock in a transaction dated 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 transaction, the director directly owned 2,193 shares of the company's stock, valued at approximately $280,046.10. The trade was a 49.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.54% of the company's stock.

Analyst Upgrades and Downgrades

DHI has been the subject of a number of analyst reports. Wall Street Zen upgraded D.R. Horton from a "sell" rating to a "hold" rating in a research note on Sunday, July 20th. Keefe, Bruyette & Woods lifted 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, July 24th. UBS Group upped their price target on D.R. Horton from $176.00 to $187.00 and gave the stock a "buy" rating in a research note on Wednesday, July 23rd. Wedbush lifted their price objective on shares of D.R. Horton from $155.00 to $170.00 and gave the company a "neutral" rating in a research report on Wednesday, July 23rd. Finally, Royal Bank Of Canada upped their target price on shares of D.R. Horton from $105.00 to $117.00 and gave the stock an "underperform" rating in a research report on Wednesday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, D.R. Horton has an average rating of "Hold" and a consensus target price of $154.38.

D.R. Horton Price Performance

D.R. Horton stock traded up $0.77 during mid-day trading on Tuesday, reaching $170.25. 2,546,337 shares of the company's stock traded hands, compared to its average volume of 3,795,855. D.R. Horton, Inc. has a 12-month low of $110.44 and a 12-month high of $199.85. The company has a market cap of $50.76 billion, a price-to-earnings ratio of 13.65, a PEG ratio of 3.60 and a beta of 1.36. The stock has a 50 day moving average of $147.83 and a two-hundred day moving average of $132.71. The company has a quick ratio of 1.19, a current ratio of 7.06 and a debt-to-equity ratio of 0.29.

D.R. Horton (NYSE:DHI - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The construction company reported $3.36 earnings per share (EPS) for the quarter, beating 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 net margin of 11.46% and a return on equity of 15.74%. During the same period in the prior year, the company earned $4.10 EPS. The business's revenue was down 7.4% compared to the same quarter last year. D.R. Horton has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. Equities analysts forecast that D.R. Horton, Inc. will post 13.04 earnings per share for the current year.

D.R. Horton Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Stockholders of record on Thursday, August 7th were paid a $0.40 dividend. The ex-dividend date of this dividend was Thursday, August 7th. This represents a $1.60 annualized dividend and a dividend yield of 0.9%. D.R. Horton's dividend payout ratio is currently 12.83%.

D.R. Horton 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.