D.R. Horton (NYSE:DHI) Shares Gap Down – Time to Sell?

D.R. Horton, Inc. (NYSE:DHI)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $141.77, but opened at $135.40. D.R. Horton shares last traded at $138.92, with a volume of 690,640 shares.

Wall Street Analysts Forecast Growth

A number of research firms have commented on DHI. Evercore ISI decreased their target price on shares of D.R. Horton from $218.00 to $204.00 and set an “outperform” rating on the stock in a research report on Wednesday, October 30th. Bank of America upped their price objective on shares of D.R. Horton from $196.00 to $215.00 and gave the stock a “buy” rating in a report on Thursday, September 19th. Wells Fargo & Company dropped their target price on shares of D.R. Horton from $190.00 to $175.00 and set an “overweight” rating for the company in a report on Tuesday. JPMorgan Chase & Co. cut D.R. Horton from a “neutral” rating to an “underweight” rating and decreased their price target for the stock from $188.00 to $156.00 in a research note on Friday, December 13th. Finally, Keefe, Bruyette & Woods cut D.R. Horton from an “outperform” rating to a “market perform” rating and dropped their price objective for the company from $200.00 to $183.00 in a research note on Tuesday, December 10th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, D.R. Horton currently has an average rating of “Hold” and an average price target of $179.60.

D.R. Horton Price Performance

The company has a 50-day moving average of $166.84 and a 200-day moving average of $168.70. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.61 and a current ratio of 7.32. The stock has a market cap of $44.79 billion, a price-to-earnings ratio of 9.72, a PEG ratio of 0.57 and a beta of 1.71.

D.R. Horton (NYSE:DHI) last released its quarterly earnings results on Tuesday, October 29th. The construction company reported $3.92 EPS for the quarter, missing the consensus estimate of $4.17 by ($0.25). D.R. Horton had a return on equity of 19.24% and a net margin of 12.93%. The company had revenue of $10 billion for the quarter, compared to analysts’ expectations of $10.22 billion. During the same quarter last year, the company earned $4.45 EPS. D.R. Horton’s revenue for the quarter was down 4.7% compared to the same quarter last year. As a group, equities research analysts predict that D.R. Horton, Inc. will post 14.17 earnings per share for the current year.

D.R. Horton Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, November 19th. Stockholders of record on Tuesday, November 12th were paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.15%. This is a positive change from D.R. Horton’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Tuesday, November 12th. D.R. Horton’s payout ratio is 11.14%.

Insider Buying and Selling at D.R. Horton

In related news, Director Barbara K. Allen sold 5,650 shares of the firm’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $163.10, for a total value of $921,515.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.74% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. TCI Wealth Advisors Inc. grew its holdings in shares of D.R. Horton by 4.1% in the 3rd quarter. TCI Wealth Advisors Inc. now owns 1,487 shares of the construction company’s stock worth $284,000 after acquiring an additional 58 shares during the period. Coldstream Capital Management Inc. boosted its position in D.R. Horton by 1.2% during the second quarter. Coldstream Capital Management Inc. now owns 5,245 shares of the construction company’s stock worth $739,000 after purchasing an additional 60 shares in the last quarter. Whittier Trust Co. grew its holdings in D.R. Horton by 1.7% in the second quarter. Whittier Trust Co. now owns 3,693 shares of the construction company’s stock valued at $520,000 after purchasing an additional 63 shares during the last quarter. Covestor Ltd increased its position in shares of D.R. Horton by 6.6% in the third quarter. Covestor Ltd now owns 1,064 shares of the construction company’s stock valued at $203,000 after buying an additional 66 shares in the last quarter. Finally, Insigneo Advisory Services LLC raised its stake in shares of D.R. Horton by 1.9% during the 3rd quarter. Insigneo Advisory Services LLC now owns 3,644 shares of the construction company’s stock worth $695,000 after buying an additional 67 shares during the last quarter. 90.63% of the stock is owned by hedge funds and other institutional investors.

D.R. Horton Company Profile

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.