Citigroup has recently reduced DR Horton Inc (DHI) stock to Neutral rating, as announced on July 2, 2024, according to Finviz. Earlier, on April 2, 2024, Wedbush had reduced the stock from a Neutral to Underperform, setting a price target of $130. Seaport Research Partners also reduced Neutral rating. Additionally, Keefe Bruyette raised Outperform rating on December 13, 2023, with a target price of $164. Jefferies analysts, in their report published on November 27, 2023, also initiated Hold rating and set a price target of $119 for DR Horton Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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DR Horton Inc (DHI) Stock Trading Recap
On Friday, DR Horton Inc (DHI) stock saw a modest uptick, ending the day at $186.14 which represents a slight increase of $2.42 or 1.32% from the prior close of $183.72. The stock opened at $184.38 and touched a low of $184.38 during the day, reaching a high of $189.18. The volume of shares traded was 2.61 million exceeding the average volume of 2.54 million.
DHI Stock Performance and Moving Averages
In recent trading, DR Horton Inc (DHI) stock price has shown some volatility, fluctuating -0.38% over the last five trades and 10.14% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 19.86%, and it has gained 29.53% in the previous three months. Currently, DHI is trading at 2.34%, 10.47%, and 22.34% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, DHI, a Consumer Cyclical sector stock, is trading -3.87% below its 52-week high but remains 85.99% above its 52-week low. The Average True Range (ATR) (14 days) of 4.85 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
DR Horton Inc’s Profitability and Valuation Ratios
DR Horton Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 17.25% and a profit margin of 13.36%, with a gross margin of 19.86%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, DR Horton Inc’s market capitalization stands at $60.69 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 12.5, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 11.67. Additionally, the Price-to-Sales Ratio is 1.63, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.47, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 11.76% of DR Horton Inc (DHI)’s shares, while financial institutions hold 85.22%.
Notable insider trades include Odom Aron M., SVP, Controller and PAO at DR Horton Inc (DHI), who sold 1000 shares on Aug 23 ’24, at $191.25 each, totaling $0.19 million. On May 06 ’24, BUCHANAN MICHAEL R, Director, sold 2000 shares for $150.7 each, amounting to $0.30 million. Additionally, on Mar 20 ’24, Auld David V sold 25000 shares at $156.33 each, generating $3.91 million.
