BIP Wealth LLC has made a significant investment in D.R. Horton, Inc. (NYSE: DHI), acquiring a new position during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the firm purchased 4,251 shares of the homebuilding company, valued at approximately $720,000. This move aligns with a broader trend, as several institutional investors have adjusted their positions in D.R. Horton recently.
In the second quarter, State Street Corp increased its stake in D.R. Horton by 0.7%, now holding 12,636,264 shares worth $1.63 billion. Norges Bank also established a new position in the company, with an investment valued at $494.3 million. Franklin Resources Inc. expanded its holdings by 16.4%, acquiring an additional 450,362 shares to reach a total of 3,200,176 shares worth $412.6 million. Invesco Ltd. raised its stake by 13.2%, now holding 2,854,268 shares valued at $368 million. Allspring Global Investments Holdings LLC increased its holdings by 42.7%, now owning 2,827,694 shares worth $378.6 million. Overall, institutional investors and hedge funds collectively own 90.63% of D.R. Horton’s stock.
D.R. Horton shares opened at $155.79 on Friday, reflecting a 1.5% decrease. The company has a current ratio of 6.63, a quick ratio of 1.18, and a debt-to-equity ratio of 0.23. The stock has experienced fluctuations, with a 12-month low of $110.44 and a high of $184.54. D.R. Horton maintains a market capitalization of $45.35 billion, along with a price-to-earnings (P/E) ratio of 14.15 and a beta of 1.42.
The company’s latest earnings report, released on January 20, 2024, revealed earnings per share (EPS) of $2.03, surpassing the consensus estimate of $1.98 by $0.05. Revenue for the quarter reached $6.89 billion, exceeding analyst expectations of $6.66 billion. Despite these positive figures, D.R. Horton reported a 9.5% decline in revenue compared to the same quarter last year, when the company posted an EPS of $2.61. Analysts forecast an average EPS of $13.04 for the current fiscal year.
In addition to strong earnings, D.R. Horton announced a quarterly dividend of $0.45, which will be distributed on February 12, 2024. Shareholders of record as of February 5, 2024, will be eligible for this payment. This dividend represents an annualized payout of $1.80 and a yield of 1.2%, with a dividend payout ratio of 15.53%.
Recent analyst reports have prompted discussions regarding D.R. Horton’s stock performance. Keefe, Bruyette & Woods has lowered their target price from $178.00 to $175.00, maintaining a “market perform” rating. Conversely, Evercore ISI increased their price target from $167.00 to $169.00, reaffirming an “in-line” rating. Barclays and Bank of America have both adjusted their target prices downward to $129.00 and $158.00 respectively, citing a neutral stance. In contrast, UBS Group continues to endorse a “buy” rating with a target price of $193.00. Currently, four analysts rate D.R. Horton as a “buy,” nine maintain a “hold” rating, and three suggest it as a “sell,” resulting in a consensus rating of “hold” with a target price of $160.92.
As D.R. Horton navigates the complexities of the housing market, investor sentiment remains a focal point. The company, established in 1978 by Donald R. Horton, operates as a prominent national homebuilder, focusing on single-family homes, townhomes, and condominiums across the United States. It also offers services related to mortgage, title, and closing processes through its subsidiaries, enhancing the homebuying experience for customers.
This recent activity among institutional investors and analysts reflects a keen interest in D.R. Horton as the company continues to adapt to market dynamics and investor expectations.
