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

D.R. Horton, Inc. (NYSE:DHI)’s stock price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. 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 analysts’ consensus estimates 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 business had revenue of $10 billion for the quarter, compared to analysts’ expectations of $10.22 billion. During the same quarter in the previous year, the company posted $4.45 earnings per share. The business’s quarterly revenue was down 4.7% compared to the same quarter last year.

D.R. Horton Increases Dividend

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

D.R. Horton announced that its Board of Directors has initiated a share repurchase program on Thursday, July 18th that authorizes the company to buyback $4.00 billion in outstanding shares. This buyback authorization authorizes the construction company to buy up to 6.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on DHI shares. Wells Fargo & Company reduced their target price on D.R. Horton from $220.00 to $190.00 and set an “overweight” rating for the company in a report on Wednesday. JPMorgan Chase & Co. boosted their price objective on shares of D.R. Horton from $163.00 to $180.00 and gave the company a “neutral” rating in a research note on Tuesday, July 23rd. UBS Group lowered their target price on shares of D.R. Horton from $217.00 to $214.00 and set a “buy” rating on the stock in a research note on Wednesday. Wedbush upgraded shares of D.R. Horton from an “underperform” rating to a “neutral” rating and set a $165.00 price target for the company in a research report on Tuesday, October 15th. Finally, Citigroup lowered their price objective on D.R. Horton from $186.00 to $185.00 and set a “neutral” rating on the stock in a research report on Wednesday. One 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. According to data from MarketBeat, D.R. Horton presently has a consensus rating of “Moderate Buy” and an average price target of $185.87.

Hedge Funds Weigh In On D.R. Horton

Institutional investors have recently modified their holdings of the company. Bfsg LLC boosted its stake in D.R. Horton by 70.5% in the second quarter. Bfsg LLC now owns 179 shares of the construction company’s stock worth $25,000 after buying an additional 74 shares in the last quarter. RiverPark Advisors LLC bought a new stake in shares of D.R. Horton in the 1st quarter worth approximately $29,000. Signature Resources Capital Management LLC purchased a new stake in shares of D.R. Horton in the 2nd quarter valued at $31,000. Wolff Wiese Magana LLC grew its holdings in shares of D.R. Horton by 1,306.7% during the 3rd quarter. Wolff Wiese Magana LLC now owns 211 shares of the construction company’s stock valued at $40,000 after purchasing an additional 196 shares during the last quarter. Finally, Grove Bank & Trust raised its position in D.R. Horton by 76.2% in the 3rd 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. 90.63% of the stock is currently owned by institutional investors.

D.R. Horton Price Performance

The firm’s 50 day simple moving average is $187.29 and its two-hundred day simple moving average is $165.15. The firm has a market capitalization of $55.75 billion, a P/E ratio of 11.52, a P/E/G ratio of 0.78 and a beta of 1.72. The company has a debt-to-equity ratio of 0.23, a current ratio of 7.22 and a quick ratio of 1.30.

About D.R. Horton

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.