why D.R. Horton Inc. [DHI] is a Good Choice for Investors After New Price Target of $93.33

D.R. Horton Inc. [NYSE: DHI] stock went on an upward path that rose over 3.49% on Thursday, amounting to a one-week price increase of more than 5.26%. The company report on December 15, 2022 that D.R. Horton, Inc. Acquires the Homebuilding Operations of Riggins Custom Homes in Fayetteville, AR.

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D.R. Horton, Inc. (NYSE:DHI), America’s Builder, today announced the acquisition of Riggins Custom Homes, one of the largest builders in Northwest Arkansas. The homebuilding assets of Riggins Custom Homes and related entities (Riggins) acquired include approximately 3,000 lots, 170 homes in inventory and 173 homes in sales order backlog. For the trailing twelve months ended November 30, 2022, Riggins closed 153 homes ($48 million in revenue) with an average home size of approximately 1,925 square feet and an average sales price of $313,600. D.R. Horton expects to pay approximately $107 million in cash for the purchase, and the Company plans to combine the Riggins operations with the current D.R. Horton platform in Northwest Arkansas.

Donald R. Horton, Chairman of the Board, said, “We are excited for the Riggins team to join the D.R. Horton family. Their quality building operations and local market expertise make Riggins an excellent extension as we grow our local start-up market position in Northwest Arkansas.”.

Over the last 12 months, DHI stock dropped by -15.76%. The one-year D.R. Horton Inc. stock forecast points to a potential upside of 3.09. The average equity rating for DHI stock is currently 2.00, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $31.36 billion, with 346.90 million shares outstanding and 302.33 million shares in the current float. Compared to the average trading volume of 3.05M shares, DHI stock reached a trading volume of 5030825 in the most recent trading day, which is why market watchdogs consider the stock to be active.

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 $93.33 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 2.00. 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.

Raymond James have made an estimate for D.R. Horton Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on October 21, 2022. The new note on the price target was released on September 19, 2022, representing the official price target for D.R. Horton Inc. stock. Previously, the target price had yet another raise to $89, while Credit Suisse analysts kept a Neutral rating on DHI stock.

The Average True Range (ATR) for D.R. Horton Inc. is set at 3.06, with the Price to Sales ratio for DHI stock in the period of the last 12 months amounting to 0.94. The Price to Book ratio for the last quarter was 1.62, with the Price to Cash per share for the same quarter was set at 7.33. Price to Free Cash Flow for DHI in the course of the last twelve months was 322.97.

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 5.26. With this latest performance, DHI shares gained by 7.46% in over the last four-week period, additionally plugging by 47.55% over the last 6 months – not to mention a drop of -15.76% 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 69.33, with the RSI for the last a single of trading hit 74.71, and the three-weeks RSI is set at 65.85 for D.R. Horton Inc. [DHI]. The present Moving Average for the last 50 days of trading for this stock 78.84, while it was recorded at 87.34 for the last single week of trading, and 74.63 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 +23.02 and a Gross Margin at +31.37. D.R. Horton Inc.’s Net Margin is presently recorded at +17.50.

Return on Equity for this stock inclined to 34.17, with Return on Assets sitting at 21.34.

DHI Stock EPS

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 -10.30%.

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

There are presently around $26,921 million, or 87.40% of DHI stock, in the hands of institutional investors. The top three institutional holders of DHI stocks are: CAPITAL WORLD INVESTORS with ownership of 38,232,812, which is approximately 16.562% of the company’s market cap and around 0.60% of the total institutional ownership; VANGUARD GROUP INC, holding 34,864,133 shares of the stock with an approximate value of $3.15 billion in DHI stocks shares; and BLACKROCK INC., currently with $2.6 billion in DHI stock with ownership of nearly -5.301% of the company’s market capitalization.

Positions in D.R. Horton Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 338 institutional holders increased their position in D.R. Horton Inc. [NYSE:DHI] by around 24,270,189 shares. Additionally, 463 investors decreased positions by around 24,267,638 shares, while 131 investors held positions by with 249,094,693 shares. The mentioned changes placed institutional holdings at 297,632,520 shares, according to the latest SEC report filing. DHI stock had 78 new institutional investments in for a total of 2,364,990 shares, while 97 institutional investors sold positions of 5,807,214 shares during the same period.

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