Wolfe Research Has Negative View of D.R. Horton Q3 Earnings

Key Points

• Wolfe Research cut Q3 2026 EPS estimate for D.R. Horton to $3.04 (from $3.24) and trimmed its FY2026 view to $10.49, signaling a more cautious near‑term outlook from that shop.
• D.R. Horton beat Q3 estimates with $2.24 EPS (vs. $2.15 expected) and $7.56B revenue (down 2.3% YoY), while analyst sentiment remains mixed—Street consensus is a "Hold" with an average price target of $168.54.
• Dividend and ownership: the company pays a $0.45 quarterly dividend (about a 1.2% yield) and is heavily institutionally owned (~90.6%), which could affect stock stability and investor interest.

D.R. Horton, Inc. (NYSE:DHI - Free Report) - Research analysts at Wolfe Research dropped their Q3 2026 earnings per share (EPS) estimates for D.R. Horton in a research report issued on Tuesday, April 21st. Wolfe Research analyst T. Allinson now expects that the construction company will post earnings per share of $3.04 for the quarter, down from their prior forecast of $3.24. The consensus estimate for D.R. Horton's current full-year earnings is $10.53 per share. Wolfe Research also issued estimates for D.R. Horton's Q4 2026 earnings at $3.20 EPS and FY2026 earnings at $10.49 EPS.

Other equities analysts have also issued research reports about the company. Zacks Research upgraded D.R. Horton from a "strong sell" rating to a "hold" rating in a research note on Friday, March 27th. Citizens Jmp restated a "market perform" rating on shares of D.R. Horton in a research note on Wednesday, January 7th. Citigroup raised their price target 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. Seaport Research Partners restated a "neutral" rating on shares of D.R. Horton in a research note on Tuesday, April 7th. Finally, Evercore raised their price target on D.R. Horton from $167.00 to $169.00 and gave the company an "in-line" rating in a research note on Wednesday, January 21st. Four investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $168.54.

D.R. Horton Stock Performance

Shares of D.R. Horton stock opened at $154.13 on Friday. The firm has a market cap of $43.71 billion, a P/E ratio of 14.44, a P/E/G ratio of 2.13 and a beta of 1.44. The company has a current ratio of 6.46, a quick ratio of 0.97 and a debt-to-equity ratio of 0.27. D.R. Horton has a 12 month low of $114.17 and a 12 month high of $184.54. The stock's fifty day moving average price is $147.26 and its 200-day moving average price is $150.61.

D.R. Horton (NYSE:DHI - Get Free Report) last released its earnings results on Tuesday, April 21st. The construction company reported $2.24 earnings per share for the quarter, topping analysts' consensus estimates of $2.15 by $0.09. The business had revenue of $7.56 billion for the quarter, compared to analyst estimates of $7.55 billion. D.R. Horton had a return on equity of 12.94% and a net margin of 9.51%.The business's revenue was down 2.3% compared to the same quarter last year. During the same quarter last year, the firm posted $2.58 earnings per share.

Institutional Investors Weigh In On D.R. Horton

A number of institutional investors have recently added to or reduced their stakes in the stock. Capital World Investors boosted its position in D.R. Horton by 22.1% during the fourth quarter. Capital World Investors now owns 36,948,434 shares of the construction company's stock valued at $5,321,849,000 after purchasing an additional 6,695,592 shares in the last quarter. Capital Research Global Investors boosted its position in D.R. Horton by 0.3% during the fourth quarter. Capital Research Global Investors now owns 4,647,088 shares of the construction company's stock valued at $669,330,000 after purchasing an additional 13,155 shares in the last quarter. Norges Bank bought a new stake in D.R. Horton during the fourth quarter valued at about $649,305,000. Morgan Stanley boosted its holdings in D.R. Horton by 1.9% in the fourth quarter. Morgan Stanley now owns 3,684,724 shares of the construction company's stock worth $530,711,000 after acquiring an additional 67,578 shares in the last quarter. Finally, Invesco Ltd. boosted its holdings in D.R. Horton by 4.5% in the fourth quarter. Invesco Ltd. now owns 3,523,164 shares of the construction company's stock worth $507,441,000 after acquiring an additional 151,144 shares in the last quarter. Institutional investors own 90.63% of the company's stock.

Insiders Place Their Bets

In related news, SVP Aron M. Odom sold 260 shares of the firm's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $167.55, for a total transaction of $43,563.00. Following the sale, the senior vice president owned 6,457 shares of the company's stock, valued at $1,081,870.35. This trade represents a 3.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.66% of the stock is currently owned by insiders.

D.R. Horton Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Thursday, May 7th will be given a dividend of $0.45 per share. The ex-dividend date of this dividend is Thursday, May 7th. This represents a $1.80 dividend on an annualized basis and a yield of 1.2%. D.R. Horton's dividend payout ratio (DPR) is presently 16.87%.

D.R. Horton News Summary

Here are the key news stories impacting D.R. Horton this week:

• Positive Sentiment: Multiple firms raised EPS forecasts for upcoming quarters and FY outyears — Citizens Jmp lifted several quarters and FY2027/FY2026 estimates (e.g., FY2027 to $11.15), Wolfe Research and Keefe Bruyette & Woods raised Q4/FY targets — signaling analysts expect stronger-than-previously-modeled profitability going into late‑2026/2027.
• Positive Sentiment: Company-level revenue guidance, while trimmed at the high end, remains above analyst expectations, supporting the view that demand and scale can sustain earnings recovery; this was highlighted in recent coverage calling DHI a top housing stock for 2026. Article Title
• Positive Sentiment: Operational expansion: D.R. Horton’s Minnesota division opened a new community (Badger Heights in Rochester), indicating continued land/community development activity and local market growth. Article Title
• Neutral Sentiment: Analyst consensus still places FY earnings near $10.50–10.73 depending on the shop; upgrades are incremental and some firms retain conservative ratings (Market Perform/Reduce), so upside may be measured rather than dramatic.
• Negative Sentiment: Citizens Jmp cut its Q1 2027 EPS estimate significantly (from $1.92 to $1.69), which flags near‑term timing risks to the recovery (seasonality, closings, or mix).
• Negative Sentiment: Wolfe Research trimmed Q3 2026 and lowered its FY2026 view in prior notes — showing some disagreement across shops on the pace of margin and volume improvement, which could make guidance sensitivity an ongoing volatility driver.

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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