Stock Traders Buy High Volume of D.R. Horton Put Options (NYSE:DHI)

Key Points

• Unusually heavy put buying hit D.R. Horton on Monday, with investors purchasing 5,169 put options, about 75% above the normal daily volume of 2,950.
• The stock fell 2.0% to $146.40, trading below its 50-day and 200-day moving averages, while volume was lighter than average.
• Analysts remain cautious overall: D.R. Horton has a consensus “Hold” rating and an average price target of $168.62, even after several firms recently raised their targets.

D.R. Horton, Inc. (NYSE:DHI - Get Free Report) was the target of unusually large options trading on Monday. Stock investors bought 5,169 put options on the stock. This is an increase of approximately 75% compared to the typical daily volume of 2,950 put options.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in DHI. First Manhattan CO. LLC. raised its position in D.R. Horton by 2.0% in the 4th quarter. First Manhattan CO. LLC. now owns 3,546 shares of the construction company's stock valued at $511,000 after purchasing an additional 70 shares during the last quarter. Deseret Mutual Benefit Administrators grew its position in D.R. Horton by 11.0% during the 4th quarter. Deseret Mutual Benefit Administrators now owns 716 shares of the construction company's stock worth $103,000 after purchasing an additional 71 shares during the last quarter. Cornerstone Planning Group LLC increased its stake in D.R. Horton by 27.9% in the first quarter. Cornerstone Planning Group LLC now owns 330 shares of the construction company's stock valued at $48,000 after purchasing an additional 72 shares during the period. AMG National Trust Bank boosted its stake in shares of D.R. Horton by 0.7% during the fourth quarter. AMG National Trust Bank now owns 10,899 shares of the construction company's stock worth $1,570,000 after buying an additional 74 shares during the period. Finally, AdvisorShares Investments LLC grew its holdings in shares of D.R. Horton by 2.4% during the fourth quarter. AdvisorShares Investments LLC now owns 3,336 shares of the construction company's stock worth $480,000 after buying an additional 77 shares during the last quarter. Institutional investors and hedge funds own 90.63% of the company's stock.

Analyst Ratings Changes

A number of research analysts have issued reports on the company. Citigroup boosted their target price on D.R. Horton from $162.00 to $173.00 and gave the company a "neutral" rating in a research note on Thursday, April 23rd. Barclays boosted their price objective on D.R. Horton from $140.00 to $141.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 14th. Truist Financial raised their target price on shares of D.R. Horton from $140.00 to $150.00 and gave the stock a "hold" rating in a report on Wednesday, April 22nd. Wells Fargo & Company lifted their price target on shares of D.R. Horton from $147.00 to $170.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 22nd. Finally, Royal Bank Of Canada increased their price objective on shares of D.R. Horton from $117.00 to $123.00 and gave the stock an "underperform" rating in a research report on Wednesday, April 22nd. Five equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, D.R. Horton has an average rating of "Hold" and an average target price of $168.62.

D.R. Horton Stock Down 2.0%

Shares of DHI stock traded down $2.99 on Monday, hitting $146.40. 990,272 shares of the stock were exchanged, compared to its average volume of 2,712,666. The company has a current ratio of 6.46, a quick ratio of 0.97 and a debt-to-equity ratio of 0.27. The firm has a market capitalization of $41.52 billion, a P/E ratio of 13.71, a price-to-earnings-growth ratio of 2.09 and a beta of 1.36. The business has a 50-day moving average of $150.54 and a 200 day moving average of $150.44. D.R. Horton has a fifty-two week low of $129.22 and a fifty-two week high of $184.54.

D.R. Horton (NYSE:DHI - Get Free Report) last posted its quarterly earnings data on Tuesday, April 21st. The construction company reported $2.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.15 by $0.09. The business had revenue of $7.56 billion during the quarter, compared to the consensus estimate of $7.55 billion. D.R. Horton had a return on equity of 12.94% and a net margin of 9.51%.D.R. Horton's quarterly revenue was down 2.3% on a year-over-year basis. During the same period last year, the company earned $2.58 earnings per share. Equities analysts anticipate that D.R. Horton will post 10.6 EPS for the current year.

D.R. Horton Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 14th. Stockholders of record on Thursday, May 7th were issued a $0.45 dividend. The ex-dividend date was Thursday, May 7th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 1.2%. D.R. Horton's dividend payout ratio (DPR) is 16.87%.

About D.R. Horton

D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company's core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.

Founded in 1978 by Donald R.

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