Two Point Capital Management Inc. Buys New Shares in D.R. Horton, Inc. $DHI

Key Points

• Two Point Capital Management Inc. acquired 135,713 shares of D.R. Horton, Inc., representing about $17.5 million and making it the fund's second largest position.
• D.R. Horton reported $3.36 earnings per share for the last quarter, exceeding estimates of $2.90, with a net margin of 11.46% and revenue of $9.23 billion.
• The company recently announced a $0.40 quarterly dividend, yielding 0.9%, with a low payout ratio of 12.83%.

Two Point Capital Management Inc. bought a new position in shares of D.R. Horton, Inc. (NYSE:DHI - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 135,713 shares of the construction company's stock, valued at approximately $17,496,000. D.R. Horton comprises approximately 7.4% of Two Point Capital Management Inc.'s holdings, making the stock its 2nd largest position.

Other large investors have also recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC increased its stake in shares of D.R. Horton by 652.0% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 1,981,609 shares of the construction company's stock worth $252,477,000 after purchasing an additional 1,718,094 shares during the last quarter. Pacer Advisors Inc. grew its holdings in D.R. Horton by 4,630.6% during the first quarter. Pacer Advisors Inc. now owns 1,691,056 shares of the construction company's stock worth $214,984,000 after purchasing an additional 1,655,309 shares during the period. Amundi increased its position in D.R. Horton by 60.2% during the first quarter. Amundi now owns 2,176,211 shares of the construction company's stock worth $266,811,000 after buying an additional 817,998 shares during the last quarter. Nuveen LLC acquired a new stake in shares of D.R. Horton in the first quarter valued at approximately $98,382,000. Finally, Vanguard Group Inc. boosted its stake in shares of D.R. Horton by 1.9% during the 1st quarter. Vanguard Group Inc. now owns 33,664,013 shares of the construction company's stock worth $4,279,706,000 after acquiring an additional 642,642 shares during the period. Institutional investors and hedge funds own 90.63% of the company's stock.

D.R. Horton Stock Performance

DHI opened at $171.50 on Friday. The firm has a market cap of $51.13 billion, a P/E ratio of 13.75, a price-to-earnings-growth ratio of 3.58 and a beta of 1.40. The business's fifty day moving average is $165.27 and its 200-day moving average is $139.56. D.R. Horton, Inc. 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 quick ratio of 1.19 and a current ratio of 7.06.

D.R. Horton (NYSE:DHI - Get Free Report) last posted its quarterly earnings data on Tuesday, July 22nd. The construction company reported $3.36 earnings per share for the quarter, topping the consensus estimate of $2.90 by $0.46. D.R. Horton had a net margin of 11.46% and a return on equity of 15.74%. The business had revenue of $9.23 billion during the quarter, compared to analysts' expectations of $8.80 billion. During the same quarter in the prior year, the business posted $4.10 earnings per share. D.R. Horton'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. Sell-side analysts expect that D.R. Horton, Inc. will post 13.04 EPS for the current fiscal year.

D.R. Horton Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Royal Bank Of Canada upped their price target on shares of D.R. Horton from $105.00 to $117.00 and gave the company an "underperform" rating in a research note on Wednesday, July 23rd. Wells Fargo & Company boosted their price target 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. Bank of America upped their price objective on D.R. Horton from $155.00 to $175.00 and gave the company a "neutral" rating in a report on Thursday, September 18th. Wedbush lifted their target price on D.R. Horton from $155.00 to $170.00 and gave the stock a "neutral" rating in a report on Wednesday, July 23rd. Finally, Wall Street Zen raised shares of D.R. Horton from a "sell" rating to a "hold" rating in a research report on Sunday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $160.00.

Insider Buying and Selling at D.R. Horton

In other D.R. Horton news, Chairman David V. Auld sold 30,000 shares of the company's stock in a transaction on 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 sale, the chairman directly owned 815,672 shares in the company, valued at $148,623,595.12. This represents a 3.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Aron M. Odom sold 1,376 shares of the firm's stock in a transaction on Friday, September 5th. The shares were sold at an average price of $183.00, for a total value of $251,808.00. Following the completion of the sale, the senior vice president directly owned 6,457 shares in the company, valued at approximately $1,181,631. This represents a 17.57% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 32,376 shares of company stock worth $5,898,848 over the last three months. Corporate insiders own 0.54% of the company's stock.

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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