RBC Capital took its D.R. Horton [DHI] rating to the equivalent of Outperform from Sector Perform, and the price target to $80.0 from $75, in a research note dated 2021-01-08. That figure represents around a 16.47% premium from where the company’s shares closed on Thursday. Other analysts also revised their coverage, with Truist’s analysts upgrading the shares from “a Hold” rating to “a Buy” rating in a research note to investors issued in mid November. Meanwhile, Susquehanna had raised its rating on DHI to “Positive” from the earlier “Neutral”, in a research note produced for clients November 11, 2020. In addition, Atlantic Equities launched coverage on November 02, 2020. The research firm rated DHI “an Overweight”.
Is D.R. Horton Inc. [NYSE:DHI] a Good Buy Right Now?
It should be noted that DHI technical indicators for short, intermediate as well as long term progress have placed an overall average of 16% as Sell. The average signal changed from 8% Sell in the last week and compares with 72% Buy in the past month. Data from D.R. Horton Inc.’s Trend Spotter indicated that the signals were Weakest. The stock current average is 2.82 million shares in the past 20 days and the short term average signal indicates a 50% Sell. In the last 50 days, the average trading volume was 3.08 million shares while the medium term average advocated for Hold. The average long-term signal stands at 25% Buy and the 100-day average volume stands at 3.11 million shares.
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DHI Price Performance
On Wall Street, D.R. Horton Inc. [NYSE:DHI] finished Thursday’s session up 4.31% at $68.69. The stock went up to $68.92 at the same session while its lowest single day price was $66.07. In the last five days, it saw a fall of about -2.04%, D.R. Horton Inc. shares dropped by almost -0.33% since the beginning of the year. However, the share price has dropped to as low as -15.42% below its one year high. On 01/04/21, the company shares recorded $69.50, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/06/21, the same year at $64.32. The company’s shares have inclined by 28.39% in the past year. The 50-day SMA achieved is $71.34 while the 200-day SMA is $62.71. Volume dropped to 3.44 million from 4.36 million in the previous session.
D.R. Horton Inc. [DHI] Valuation Measures
Notably, D.R. Horton Inc. [DHI] stock can be classified as a good candidate in the listing of underestimated low-priced Residential Construction companies to purchase soonest possible with the prevailing 12-month PE ratio of 10.70. The measure means the stock is exchanging at a discount as compared to the 11.83x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 1.25 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 0.86 which means DHI serve an attractive investment opportunity compared to its competitors.
DHI Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 66.87 level, and in case of violation of this particular level, it will cause more drop to 65.04 level. On the upper level, 70.74 is still the key resistance. The stock may increase to the subsequent resistance at 69.72. The Relative Strength Index (RSI) pinned on the 14-day chart is 44.69, implying a neutral technical stance while the MACD stands at -3.15, meaning price will decrease in the next trading period. Percent R indicator moved to 57.90%, implying low price movement. Stochastic %K at 20.88% suggest selling the stock.
What is the short interest in D.R. Horton Inc.?
Short interest in the D.R. Horton Inc. stock has plunged, decreasing by -0.25 million shares to total 4.96 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 4.71 million, data from Yahoo Finance shows. The increase of 5.04% suggests the stock saw some increased bearish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 1.69% of the overall float for the stock.
D.R. Horton Inc.’s Biggest Shareholders: Who Owns D.R. Horton Inc. [DHI]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 34,684,387 shares or roughly 9.52% of the outstanding DHI shares. This means their shares have reduced by -1,168,112 from the 34,684,387 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, BlackRock Fund Advisors updated stake is worth $1,531,407,845. Details in the latest 13F filings reveal that Fidelity Management & Research Co acquired their 20.05% stake valued at $1,246,559,554 while SSgA Funds Management, Inc. added theirs at $1,198,153,626. During the last quarter, Fidelity Management & Research Co raised 2,794,924 of its shares in D.R. Horton Inc. while SSgA Funds Management, Inc. bought 306,226 shares. The Sanders Capital LLC’s holdings currently number 15,379,656 shares at $1056428570.64. According to the firm’s last 13F report, Capital Research & Management Co shares in the company at filing stood at 11,223,623 shares, roughly $836,159,914.
DHI Earnings Forecast For The Current Quarter
D.R. Horton Inc. [DHI] is expected to report strong earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $5.58B and an earnings per share of $1.7 for Dec 2020. Looking further ahead, the company is expected to report revenue of $5.93B at an EPS of $1.86 for Mar 2021. The estimates represent upside of 13.20% and 12.24% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
DHI Earnings Estimates For The Current Year
For the financial year, D.R. Horton Inc. [NYSE:DHI] is expected to bring in revenue of $25.08B. The returns are nearly $4.77 billion higher than the company’s actual revenue recorded in the fiscal year 2020. In terms of EPS for the 2021, estimate put it at 7.9, higher than that of FY20 by $1.49. Estimates put this year’s earnings growth at 23.20%, 13.30% for the next, and at an annual 16.60% over the next 5-year period. As for sales, forecasts are for an increase of 23.50% in the current fiscal year and a further 13.20% over the following year.