D.R. Horton (NYSE:DHI) Shares Gap Down After Earnings Miss

D.R. Horton, Inc. (NYSE:DHI) shares gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $180.38, but opened at $153.19. D.R. Horton shares last traded at $156.20, with a volume of 1,921,070 shares changing hands.

The construction company reported $3.92 EPS for the quarter, missing the consensus estimate of $4.20 by ($0.28). D.R. Horton had a net margin of 13.36% and a return on equity of 20.72%. The company had revenue of $10 billion during the quarter, compared to analyst estimates of $10.22 billion. During the same quarter last year, the business earned $4.45 EPS. The firm’s revenue for the quarter was down 4.7% on a year-over-year basis.

D.R. Horton Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 19th. Investors of record on Tuesday, November 12th will be issued a $0.40 dividend. The ex-dividend date is Tuesday, November 12th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.95%. This is a boost from D.R. Horton’s previous quarterly dividend of $0.30. D.R. Horton’s dividend payout ratio is currently 8.17%.

D.R. Horton declared that its Board of Directors has initiated a stock repurchase program on Thursday, July 18th that permits the company to buyback $4.00 billion in shares. This buyback authorization permits the construction company to purchase up to 6.9% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

DHI has been the subject of a number of research analyst reports. JPMorgan Chase & Co. raised their price target on D.R. Horton from $163.00 to $180.00 and gave the company a “neutral” rating in a research report on Tuesday, July 23rd. Keefe, Bruyette & Woods raised their target price on shares of D.R. Horton from $178.00 to $208.00 and gave the company an “outperform” rating in a report on Tuesday, July 23rd. Citigroup reduced their price target on shares of D.R. Horton from $186.00 to $185.00 and set a “neutral” rating on the stock in a report on Wednesday. Wells Fargo & Company dropped their price objective on shares of D.R. Horton from $220.00 to $190.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Wedbush upgraded D.R. Horton from an “underperform” rating to a “neutral” rating and set a $165.00 target price on the stock in a report on Tuesday, October 15th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and ten have given a buy rating to the stock. Based on data from MarketBeat, D.R. Horton has a consensus rating of “Moderate Buy” and a consensus price target of $185.87.

Hedge Funds Weigh In On D.R. Horton

Several large investors have recently added to or reduced their stakes in DHI. RiverPark Advisors LLC acquired a new position in shares of D.R. Horton during the 1st quarter valued at about $29,000. Bfsg LLC grew its holdings in D.R. Horton by 70.5% in the second quarter. Bfsg LLC now owns 179 shares of the construction company’s stock valued at $25,000 after purchasing an additional 74 shares during the period. Wolff Wiese Magana LLC increased its position in D.R. Horton by 1,306.7% during the third quarter. Wolff Wiese Magana LLC now owns 211 shares of the construction company’s stock worth $40,000 after purchasing an additional 196 shares during the last quarter. Grove Bank & Trust raised its stake in D.R. Horton by 76.2% during the third quarter. Grove Bank & Trust now owns 215 shares of the construction company’s stock worth $41,000 after purchasing an additional 93 shares during the period. Finally, Signature Resources Capital Management LLC acquired a new position in shares of D.R. Horton in the 2nd quarter valued at $31,000. 90.63% of the stock is currently owned by hedge funds and other institutional investors.

D.R. Horton Price Performance

The company has a market capitalization of $55.75 billion, a PE ratio of 11.52, a PEG ratio of 0.78 and a beta of 1.72. The company has a current ratio of 7.22, a quick ratio of 1.30 and a debt-to-equity ratio of 0.23. The company’s 50 day moving average price is $187.29 and its 200-day moving average price is $165.15.

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.