D.R. Horton (NYSE:DHI) Shares Gap Down – Should You 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 Analyst Weigh In

Several research firms have issued reports on DHI. UBS Group decreased their price objective on shares of D.R. Horton from $217.00 to $214.00 and set a “buy” rating on the stock in a report on Wednesday, October 30th. BTIG Research reduced their price target on shares of D.R. Horton from $190.00 to $186.00 and set a “buy” rating on the stock in a research note on Wednesday, October 30th. Royal Bank of Canada cut their target price on D.R. Horton from $154.00 to $145.00 and set an “underperform” rating on the stock in a research report on Wednesday, October 30th. Barclays reiterated an “equal weight” rating and issued a $170.00 price objective (down previously from $192.00) on shares of D.R. Horton in a report on Wednesday, December 11th. Finally, Evercore ISI reduced 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 report on Wednesday, October 30th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $179.60.

D.R. Horton Trading Down 2.9 %

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 company has a market capitalization of $44.18 billion, a PE ratio of 9.59, a P/E/G ratio of 0.57 and a beta of 1.71. The business has a fifty day moving average price of $168.62 and a 200 day moving average price of $168.97.

D.R. Horton (NYSE:DHI) last announced its quarterly earnings data on Tuesday, October 29th. The construction company reported $3.92 earnings per share (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 firm had revenue of $10 billion for the quarter, compared to the consensus estimate of $10.22 billion. During the same quarter last year, the business earned $4.45 earnings per share. The business’s revenue for the quarter was down 4.7% compared to the same quarter last year. Analysts expect that D.R. Horton, Inc. will post 14.17 EPS for the current fiscal year.

D.R. Horton Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, November 19th. Investors of record on Tuesday, November 12th were issued a $0.40 dividend. The ex-dividend date was Tuesday, November 12th. This represents a $1.60 dividend on an annualized basis and a yield of 1.16%. This is an increase from D.R. Horton’s previous quarterly dividend of $0.30. D.R. Horton’s dividend payout ratio is currently 11.14%.

Insider Transactions at D.R. Horton

In other D.R. Horton news, Director Barbara K. Allen sold 5,650 shares of the firm’s stock in a transaction that occurred on Thursday, November 21st. The shares were sold at an average price of $163.10, for a total transaction of $921,515.00. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 1.74% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On D.R. Horton

A number of hedge funds have recently bought and sold shares of DHI. IMS Capital Management boosted its holdings in D.R. Horton by 9.0% in the third quarter. IMS Capital Management now owns 3,813 shares of the construction company’s stock worth $727,000 after acquiring an additional 316 shares in the last quarter. Brass Tax Wealth Management Inc. bought a new position in D.R. Horton during the 3rd quarter valued at $222,000. Oddo BHF Asset Management Sas bought a new stake in shares of D.R. Horton during the 3rd quarter worth $713,000. American Trust bought a new position in shares of D.R. Horton during the 3rd quarter valued at approximately $3,399,000. Finally, Peapack Gladstone Financial Corp grew its holdings in D.R. Horton by 41.7% during the 3rd quarter. Peapack Gladstone Financial Corp now owns 23,586 shares of the construction company’s stock valued at $4,500,000 after buying an additional 6,936 shares in the last quarter. 90.63% of the stock is owned by institutional investors.

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.