Dream Finders Homes (NYSE:DFH) Sets New 52-Week Low - Time to Sell?

Key Points

• Dream Finders Homes shares fell 8.3%, reaching a new 52-week low of $9.73 and trading well below their 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: Weiss Ratings reiterated a “sell (D+)” rating, while the broader consensus is “Hold” with an average price target of $26.00.
• Despite the decline, insiders bought 103,000 shares worth about $1.43 million over the past 90 days, while institutional investors own 95.55% of the company.

Dream Finders Homes, Inc. (NYSE:DFH - Get Free Report)'s stock price hit a new 52-week low on Tuesday. The stock traded as low as $9.73 and last traded at $9.8630, with a volume of 1533857 shares trading hands. The stock had previously closed at $10.75.

Analyst Ratings Changes

Separately, Weiss Ratings reiterated a "sell (d+)" rating on shares of Dream Finders Homes in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $26.00.

Dream Finders Homes Trading Down 8.3%

The company's 50-day simple moving average is $13.30 and its 200 day simple moving average is $14.32. The stock has a market cap of $894.77 million, a P/E ratio of 6.90 and a beta of 1.91.

Dream Finders Homes (NYSE:DFH - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.27 earnings per share (EPS) for the quarter. The company had revenue of $1.06 billion during the quarter. Dream Finders Homes had a return on equity of 10.38% and a net margin of 3.55%.

Insiders Place Their Bets

In other Dream Finders Homes news, Director Richard Beckwitt acquired 70,000 shares of Dream Finders Homes stock in a transaction on Tuesday, August 11th. The stock was purchased at an average price of $13.95 per share, for a total transaction of $976,500.00. Following the purchase, the director directly owned 70,000 shares of the company's stock, valued at $976,500. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders acquired a total of 103,000 shares of company stock valued at $1,427,755 over the last 90 days. 65.97% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Dream Finders Homes

A number of hedge funds have recently made changes to their positions in the business. Engineers Gate Manager LP bought a new position in Dream Finders Homes during the second quarter valued at about $667,000. Bank of New York Mellon Corp bought a new stake in Dream Finders Homes in the second quarter worth about $2,833,000. Handelsbanken Fonder AB raised its position in Dream Finders Homes by 87.3% in the second quarter. Handelsbanken Fonder AB now owns 26,600 shares of the company's stock worth $459,000 after acquiring an additional 12,400 shares during the period. GAMMA Investing LLC boosted its stake in Dream Finders Homes by 37.5% in the second quarter. GAMMA Investing LLC now owns 9,996 shares of the company's stock valued at $173,000 after acquiring an additional 2,728 shares during the last quarter. Finally, Versant Capital Management Inc boosted its stake in Dream Finders Homes by 59.4% in the second quarter. Versant Capital Management Inc now owns 5,135 shares of the company's stock valued at $89,000 after acquiring an additional 1,913 shares during the last quarter. 95.55% of the stock is currently owned by institutional investors.

About Dream Finders Homes

Dream Finders Homes, Inc is a residential homebuilder that designs, constructs and sells single-family homes. The company offers a range of home plans and options intended for first-time, move-up and luxury buyers, with homes typically sold through a build-to-order model as well as from completed inventory. Its operations also include the development and acquisition of residential lots for use in its homebuilding activities.

Founded in 2008, Dream Finders Homes has expanded through organic growth and acquisitions into multiple housing markets across the United States.

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