D.R. Horton stock: buy or sell?

DHI stock price: $61.88 -0.27% At close on February 21st, 2020

Updated on:
February 21st, 2020

5

After several days of continuous hikes in past weeks, D.R. Horton stayed constant -0.27% to $61.88. February/21 broke a green streak of 4 sessions in a row.

D.R. Horton, Inc. operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest, and West America.

Should I buy D.R. Horton stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading plan that fits your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups are elegible for D.R. Horton stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is D.R. Horton stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for DHI stock for the last month.

D.R. Horton stock analysis

Daily outlook

After topping to all time highs on Tuesday, D.R. Horton stayed steady -0.27% on Feb 21st to $61.88.

D.R. Horton stayed steady -0.27% on February/21 to $61.88 after reaching all time highs on Tuesday. On Tuesday, DHI hit new all time highs, pushing higher previous ATH of $62.12 recorded on Feb/11. New ATHs are usual entry points for many trading setups as there aren't higher resistences. For the last 40 days when DHI stock price broke up the SMA50d line, it gained $8.46 (15.84%).

DHI stock chart (daily)

Weekly outlook

D.R. Horton shares peaked new all time highs again this week, marking to $62.54. Shares ended at $61.88 and remained constant 0.11% during the week. With this, it's been 5 green weeks in a row, gaining $6.33 or 11.81%.

DHI shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom by mid December 2019, DHI climbed unceasignly breaking out to new all time highs. Since late April 2019 when SMA20w and SMA40w crossed up, DHI price gained $18.43 per share (42.42%). Early March DHI price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

DHI stock chart (weekly)

D.R. Horton stock price history

D.R. Horton stock went public on June 5th, 1992 with a price of $1.031. Since then, DHI stock surged a 5,907.80%, with a yearly average of 218.80%. If you had invested right after DHI's IPO a $1,000 in D.R. Horton stock in 1992, it would worth $59,078.00 today.

1: Adjusted price after possible price splits or reverse-splits.

D.R. Horton stock historical price chart

DHI stock reached all-time highs on Tuesday with a price of $62.54.

D.R. Horton stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price target for D.R. Horton stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when D.R. Horton posted its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will extend this report.
DHI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.77n/a
2017-Q32017-11-090.810.821.2%
2017-Q42018-01-310.490.490.0%
2018-Q12018-04-260.860.915.8%
2018-Q22018-07-261.081.189.3%
2018-Q32018-11-081.231.22-0.8%
2018-Q42019-01-250.780.76-2.6%
2019-Q12019-04-240.87n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw an amazing gain of 14.03% to $16,068.00 million dollars. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) gained a 1.72% to 9.09%.

To have an updated picture of the financial situation of D.R. Horton, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual D.R. Horton TTM sales up to March 2019 were $16,588.10 and income was $1,558.50 million USD. If we compare this TTM figures with the last reported annuality, we can review D.R. Horton business evolution since September 2018: Annual turnover up to March, compared to lastest yearly report, appreciated a beatiful 3.24%. Regarding profit margin, D.R. Horton stayed constant 0.31% to 9.09%

DHI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$6,260 M-$463 M7.4%-
2014$8,025 M28.19%$534 M6.6%15.30%
2015$10,824 M34.88%$751 M6.9%40.71%
2016$12,157 M12.32%$886 M7.3%18.06%
2017$14,091 M15.90%$1,038 M7.4%17.16%
2018$16,068 M14.03%$1,460 M9.1%40.63%
TTM $16,588 M3.24%$1,559 M9.4%6.72%

Quarterly financial results

D.R. Horton reported $4,128.70 million in revenues for 2019-Q1, a 17.33% up compared to previous quarter. Reported quarter income marked $351.30 M with a profit margin of 8.51%. Profit margin remained stable a 0.35% compared to previous quarter when profit margin was 8.16%. When comparing turnover to same quarter last year, D.R. Horton sales marked a shining increase and jumped a 8.80%.
DHI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,780 M-$289 M7.6%-
2017-Q3$4,159 M10.03%$313 M7.5%8.41%
2017-Q4$3,333 M-19.87%$189 M5.7%-39.58%
2018-Q1$3,795 M13.86%$351 M9.2%85.42%
2018-Q2$4,435 M16.88%$454 M10.2%29.29%
2018-Q3$4,505 M1.57%$466 M10.3%2.73%
2018-Q4$3,519 M-21.89%$287 M8.2%-38.40%
2019-Q1$4,129 M17.33%$351 M8.5%22.32%

D.R. Horton ownership

When you are planning to buy a company, it's worth to overview its ownership structure.

D.R. Horton shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 8.47% of all shares.

Bearish positions for DHI stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related companies:

DHI
Market cap$22.7 B
Total shares366.4 M
Float shares331.8 M
  - Institutional holdings (%)87.0%
  - Insider holdings (%)8.5%
Shares in short selling0.0%

D.R. Horton summary

Friday, February 21st, 2020
Open$62.13
Close$61.88
Day range$61.65 - $62.52
Previous close$62.05
Session gain-0.27%
Average true range$1.02
50d mov avg$56.63
100d mov avg$54.81
200d mov avg$50.41
Daily pattern
Weekly pattern lb03c

D.R. Horton performance

To measure stock performance is always good to compare with competitors or related stocks. In the following table, we compare D.R. Horton performance to :
Stock3m6m12m
DHID.R. Horton15.06%26.52%53.43%

D.R. Horton competitors

Unfortunately, we could not find any public company that could be defined as D.R. Horton competitor. This doesn't mean D.R. Horton does not have any competitor in the market, it's just we could not detected it.

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