D.R. Horton (NYSE:DHI) Cut to “Sell” at StockNews.com

StockNews.com downgraded shares of D.R. Horton (NYSE:DHI) from a hold rating to a sell rating in a research report sent to investors on Thursday morning.

DHI has been the subject of several other reports. UBS Group reduced their price target on D.R. Horton from $214.00 to $203.00 and set a “buy” rating for the company in a report on Wednesday. Evercore ISI reduced their price objective on shares of D.R. Horton from $218.00 to $204.00 and set an “outperform” rating for the company in a research note on Wednesday, October 30th. Barclays reiterated an “equal weight” rating and issued a $170.00 target price (down previously from $192.00) on shares of D.R. Horton in a research note on Wednesday, December 11th. Citigroup reduced their price target on shares of D.R. Horton from $185.00 to $152.00 and set a “neutral” rating for the company in a research report on Monday, January 6th. Finally, Royal Bank of Canada lowered their price objective on D.R. Horton from $154.00 to $145.00 and set an “underperform” rating on the stock in a research report on Wednesday, October 30th. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating and six have issued a buy rating to the company. According to MarketBeat.com, D.R. Horton has a consensus rating of “Hold” and a consensus price target of $176.93.

D.R. Horton Trading Down 2.4 %

Shares of NYSE DHI opened at $136.52 on Thursday. The stock has a market cap of $43.85 billion, a P/E ratio of 9.51, a price-to-earnings-growth ratio of 0.56 and a beta of 1.71. The company has a debt-to-equity ratio of 0.23, a current ratio of 7.32 and a quick ratio of 1.61. D.R. Horton has a 1 year low of $133.02 and a 1 year high of $199.85. The firm has a 50-day moving average of $154.38 and a 200 day moving average of $168.61.

D.R. Horton (NYSE:DHI) last released its earnings results on Tuesday, October 29th. The construction company reported $3.92 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.17 by ($0.25). D.R. Horton had a net margin of 12.93% and a return on equity of 19.24%. The business had revenue of $10 billion for the quarter, compared to analysts’ expectations of $10.22 billion. During the same quarter in the previous year, the business posted $4.45 earnings per share. D.R. Horton’s revenue for the quarter was down 4.7% on a year-over-year basis. As a group, sell-side analysts expect that D.R. Horton will post 14.03 EPS for the current fiscal year.

D.R. Horton Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, November 19th. Stockholders of record on Tuesday, November 12th were paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.17%. The ex-dividend date was Tuesday, November 12th. This is a boost from D.R. Horton’s previous quarterly dividend of $0.30. D.R. Horton’s dividend payout ratio is 11.14%.

Insider Buying and Selling

In other news, Director Barbara K. Allen sold 5,650 shares of D.R. Horton stock in a transaction dated Thursday, November 21st. The stock was sold at an average price of $163.10, for a total transaction of $921,515.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 1.74% of the stock is currently owned by insiders.

Institutional Investors Weigh In On D.R. Horton

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DHI. Coastline Trust Co bought a new position in shares of D.R. Horton in the third quarter worth approximately $26,000. Rakuten Securities Inc. lifted its stake in shares of D.R. Horton by 216.7% during the 3rd quarter. Rakuten Securities Inc. now owns 171 shares of the construction company’s stock valued at $33,000 after buying an additional 117 shares in the last quarter. Wolff Wiese Magana LLC boosted its holdings in D.R. Horton by 1,306.7% in the 3rd quarter. Wolff Wiese Magana LLC now owns 211 shares of the construction company’s stock worth $40,000 after buying an additional 196 shares during the period. Grove Bank & Trust increased its stake in D.R. Horton by 76.2% in the 3rd quarter. Grove Bank & Trust now owns 215 shares of the construction company’s stock worth $41,000 after buying an additional 93 shares in the last quarter. Finally, FSA Wealth Management LLC bought a new stake in D.R. Horton during the third quarter valued at about $47,000. 90.63% of the stock is owned by hedge funds and other institutional investors.

About D.R. Horton

D.R. Horton, Inc operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R.