Market Analysts see D.R. Horton Inc. [DHI] gaining to $90. Time to buy?

D.R. Horton Inc. [NYSE: DHI] price surged by 0.40 percent to reach at $0.28. The company report on October 19, 2020 that D.R. Horton, Inc. Acquires the Homebuilding Operations of Braselton Homes.

D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today announced the acquisition of Braselton Homes, the largest homebuilder in Corpus Christi, Texas. The homebuilding assets acquired include approximately 95 lots, 90 homes in inventory and 125 homes in sales order backlog. D.R. Horton also acquired control of approximately 840 lots through purchase contracts. For the twelve months ended September 30, 2020, Braselton closed 223 homes ($56.3 million in revenue) with an average home size of approximately 1,815 square feet and an average sales price of $253,000. D.R. Horton expects to pay approximately $23 million in cash for the purchase, and Braselton will operate as a separate division within D.R. Horton.

Donald R. Horton, Chairman of the Board, said, “We are pleased to have Braselton Homes, their local management and employees join the D.R. Horton family. Their experienced, dedicated team and well-established building operations make Braselton a great addition as we continue to expand our footprint across Texas.”.

A sum of 2504528 shares traded at recent session while its average daily volume was at 3.12M shares. D.R. Horton Inc. shares reached a high of $70.57 and dropped to a low of $68.72 until finishing in the latest session at $69.46.

The one-year DHI stock forecast points to a potential upside of 13.53. The average equity rating for DHI stock is currently 2.10, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on D.R. Horton Inc. [DHI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DHI shares is $80.33 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DHI stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Atlantic Equities have made an estimate for D.R. Horton Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on November 02, 2020. The new note on the price target was released on October 26, 2020, representing the official price target for D.R. Horton Inc. stock.

The Average True Range (ATR) for D.R. Horton Inc. is set at 2.45, with the Price to Sales ratio for DHI stock in the period of the last 12 months amounting to 1.36. The Price to Book ratio for the last quarter was 2.29, with the Price to Cash per share for the same quarter was set at 6.35. Price to Free Cash Flow for DHI in the course of the last twelve months was 24.61.

DHI Stock Performance Analysis:

D.R. Horton Inc. [DHI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.52. With this latest performance, DHI shares dropped by -8.24% in over the last four-week period, additionally plugging by 46.97% over the last 6 months – not to mention a rise of 35.80% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DHI stock in for the last two-week period is set at 42.92, with the RSI for the last a single of trading hit 40.21, and the three-weeks RSI is set at 44.31 for D.R. Horton Inc. [DHI]. The present Moving Average for the last 50 days of trading for this stock 73.21, while it was recorded at 68.47 for the last single week of trading, and 58.60 for the last 200 days.

Insight into D.R. Horton Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and D.R. Horton Inc. [DHI] shares currently have an operating margin of +11.68 and a Gross Margin at +22.01. D.R. Horton Inc.’s Net Margin is presently recorded at +9.20.

Return on Total Capital for DHI is now 15.77, given the latest momentum, and Return on Invested Capital for the company is 14.67. Return on Equity for this stock inclined to 17.03, with Return on Assets sitting at 10.81. When it comes to the capital structure of this company, D.R. Horton Inc. [DHI] has a Total Debt to Total Equity ratio set at 33.92. Additionally, DHI Total Debt to Total Capital is recorded at 25.33, with Total Debt to Total Assets ending up at 21.60. Long-Term Debt to Equity for the company is recorded at 14.90, with the Long-Term Debt to Total Capital now at 11.12.

Reflecting on the efficiency of the workforce at the company, D.R. Horton Inc. [DHI] managed to generate an average of $181,528 per employee. Receivables Turnover for the company is 99.31 with a Total Asset Turnover recorded at a value of 1.18.


With the latest financial reports released by the company, D.R. Horton Inc. posted 1.35/share EPS, while the average EPS was predicted by analysts to be reported at 1.25/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 8.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DHI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for D.R. Horton Inc. go to 20.50%.

D.R. Horton Inc. [DHI] Insider Position Details

There are presently around $20,715 million, or 83.30% of DHI stock, in the hands of institutional investors. The top three institutional holders of DHI stocks are: VANGUARD GROUP INC with ownership of 37,409,712, which is approximately -5.075% of the company’s market cap and around 8.51% of the total institutional ownership; BLACKROCK INC., holding 33,775,597 shares of the stock with an approximate value of $2.35 billion in DHI stocks shares; and STATE STREET CORP, currently with $1.1 billion in DHI stock with ownership of nearly -0.254% of the company’s market capitalization.

Positions in D.R. Horton Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 362 institutional holders increased their position in D.R. Horton Inc. [NYSE:DHI] by around 32,908,433 shares. Additionally, 411 investors decreased positions by around 40,912,058 shares, while 67 investors held positions by with 224,409,386 shares. The mentioned changes placed institutional holdings at 298,229,877 shares, according to the latest SEC report filing. DHI stock had 134 new institutional investments in for a total of 12,311,517 shares, while 87 institutional investors sold positions of 9,724,771 shares during the same period.

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