D.R. Horton (NYSE:DHI) Stock Price Breaks Below 200-Day Moving Average - Should You Sell?

Key Points

• D.R. Horton shares fell below their 200-day moving average, reaching $146.40 before last trading at $147.23. The 200-day average was $147.51.
• Analyst sentiment is mixed but averages to Hold: five Buy, twelve Hold, and four Sell ratings, with an average price target of $151.33.
• Quarterly EPS of $2.67 missed the $3.01 consensus, while revenue of $9.37 billion topped estimates but declined 3.2% year over year. The company also raised its quarterly dividend from $0.45 to $0.50 per share.

D.R. Horton, Inc. (NYSE:DHI - Get Free Report)'s share price passed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $147.51 and traded as low as $146.40. D.R. Horton shares last traded at $147.2340, with a volume of 3,342,717 shares trading hands.

Analysts Set New Price Targets

DHI has been the topic of several analyst reports. Truist Financial cut their price target on shares of D.R. Horton from $150.00 to $140.00 and set a "hold" rating on the stock in a research report on Wednesday, September 16th. Citigroup boosted their price target on D.R. Horton from $150.00 to $152.00 and gave the stock a "neutral" rating in a research report on Monday, November 2nd. Wells Fargo & Company decreased their target price on shares of D.R. Horton from $145.00 to $140.00 and set an "equal weight" rating for the company in a research note on Friday, October 16th. Evercore dropped their price target on shares of D.R. Horton from $171.00 to $166.00 in a research report on Thursday, October 8th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $182.00 target price (down from $190.00) on shares of D.R. Horton in a report on Monday, October 12th. Five analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $151.33.

D.R. Horton Stock Down 1.6%

The company has a market cap of $41.18 billion, a price-to-earnings ratio of 14.52, a P/E/G ratio of 1.75 and a beta of 1.35. The firm has a 50-day moving average price of $141.58 and a 200 day moving average price of $147.51. The company has a debt-to-equity ratio of 0.26, a current ratio of 6.01 and a quick ratio of 0.95.

D.R. Horton (NYSE:DHI - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The construction company reported $2.67 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.01 by ($0.34). D.R. Horton had a net margin of 8.74% and a return on equity of 11.93%. The firm had revenue of $9.37 billion during the quarter, compared to the consensus estimate of $9.07 billion. During the same quarter last year, the firm earned $3.04 earnings per share. The business's revenue for the quarter was down 3.2% compared to the same quarter last year. Sell-side analysts predict that D.R. Horton, Inc. will post 10.48 EPS for the current year.

D.R. Horton Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 12th will be issued a dividend of $0.50 per share. This is an increase from D.R. Horton's previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. D.R. Horton's payout ratio is currently 17.75%.

Hedge Funds Weigh In On D.R. Horton

Several hedge funds have recently bought and sold shares of the company. Silvant Capital Management LLC acquired a new position in shares of D.R. Horton during the 2nd quarter worth $4,828,000. Johnson Financial Group Inc. acquired a new stake in shares of D.R. Horton in the 2nd quarter valued at approximately $6,126,000. Wealthfront Advisers LLC acquired a new position in D.R. Horton during the 2nd quarter worth approximately $14,622,000. Alpine Woods Capital Investors LLC acquired a new stake in D.R. Horton in the second quarter valued at approximately $2,219,000. Finally, BlackRock Inc. bought a new stake in shares of D.R. Horton during the second quarter worth $4,067,842,000. 90.63% of the stock is owned by institutional investors.

D.R. Horton Company Profile

D.R. Horton, Inc. is a U.S. homebuilder founded in 1978 by Donald R. Horton. Headquartered in Arlington, Texas, the company builds and sells homes in markets across the United States. Its homebuilding business offers single-family homes and townhomes for buyers with a range of needs and budgets. D.R. Horton markets homes under brands including D.R. Horton, Express, Emerald and Freedom, which serves active-adult buyers. The company also provides mortgage financing and title services to homebuyers through its financial-services operations, and has a home-rental business.

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