D.R. Horton stock: buy or sell?

DHI stock price: $49.18 -2.30% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

4

After climbing for 4 sessions, Friday D.R. Horton fell a tragic -2.30%, closing at $49.18.

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?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Check the only buy setup that matches with D.R. Horton stock now:

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

Is D.R. Horton stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we collected 15 ratings published for DHI stock in the last 30 days.

The general sentiment of these ratings is bullish for DHI stock, with 11 positive ratings.
Is DHI a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-23Seaport Global Securitiesn/aBuy
2019-7-31Buckingham Researchn/aBuy
2019-7-31Barclaysn/aOverweight
2019-6-6KeyCorpn/aOverweight
2019-4-9JMP SecuritiesMarket OutperformMarket Outperform
2019-4-26Royal Bank of Canadan/aHold
2019-3-7Zelman & AssociatesHoldBuy
2019-2-21WedbushOutperformNeutral
2019-2-14Raymond JamesStrong-BuyMarket Perform
2019-1-9Keefe, Bruyette & WoodsMarket PerformOutperform
2019-1-23Wedbushn/aOutperform
2019-1-23MizuhoNeutralBuy
2019-1-2JMP Securitiesn/aBuy
2019-1-11Keefe, Bruyette & WoodsOutperformMarket Perform
2019-1-11Credit Suisse Groupn/aBuy

D.R. Horton stock analysis

Daily outlook

After climbing for 4 sessions, Friday D.R. Horton fell a tragic -2.30%, closing at $49.18.

After climbing for 4 sessions, Friday D.R. Horton fell a tragic -2.30%, closing at $49.18. Since SMA100d and SMA200d crossed up on May, DHI price climbed $5.72 per share (13.16%). From a daily perspective, DHI is in a short term uptrend after plotting its last bottom ($46.73, on August 12th) higher than the previous bottom, and its last top ($50.64, yesterday) also over the previous top. Now trading in between its last bottom and last top DHI might consolidate in a plain range, waiting to break out over $50.64 or down under $46.73. On June DHI price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock.

DHI stock chart (daily)

Weekly outlook

D.R. Horton shares escalated 2.99% this week, ending at $49.18. Counting this, it's been 4 climbing weeks in a row, soaring a 10.74%. Late July DHI rocketed a phenomenal 5.31% in just one week.

Since SMA20d and SMA40w crossed up late April, DHI price climbed $5.47 per share (12.51%). Since price and SMA40w lines crossed up early March, DHI climbed $10.65 (27.64%).

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 grew a 4,674.80%, with an average of 173.10% per year. If you had invested $1,000 in D.R. Horton stock in 1992, it would worth $46,748.00 today.

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

D.R. Horton stock historical price chart

DHI stock reached 52-week highs yesterday at $50.64, and all-time highs 2018-01-04 with a price of 52.1.

D.R. Horton stock price target is $48.10

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. 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 30 days we found 11 price forecasts for D.R. Horton stock:
DHI stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-23Seaport Global SecuritiesInitiatesn/a$59.00-
2019-7-31Buckingham ResearchRaises Target$53.00$55.003.8%
2019-7-31BarclaysRaises Target$46.00$52.0013%
2019-6-6KeyCorpRaises Target$45.00$52.0015.6%
2019-4-9JMP SecuritiesRaises Target$44.00$49.0011.4%
2019-4-26Royal Bank of CanadaSet Price Targetn/a$43.00-
2019-2-21WedbushDowngradesn/a$41.00-
2019-1-23WedbushReiteratesn/a$43.00-
2019-1-23MizuhoUpgrades$40.00$45.0012.5%
2019-1-2JMP SecuritiesSet Price Targetn/a$44.00-
2019-1-11Credit Suisse GroupReiteratesn/a$46.00-
(in average)$45.60$48.105.0%
Moving in a range from $59.00 and $41.00, the price forecast for D.R. Horton stock is $48.10. In average, analysts' outlook on DHI price forecast is positive, improving the prediction by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After publishing its last earnings report on April, D.R. Horton soared a nice 6.68%. As soon as we get its posted EPS from the earnings report, we will extend this review.
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

In 2018, D.R. Horton annual revenues rocketed an exceptional 14.03% to $16,068.00 M dollars from $14,091.00 marked in 2017. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) gained a 1.72% to 9.09%.

D.R. Horton fiscal year ends in September, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, D.R. Horton TTM sales up to March 2019 were $16,588.10 and income $1,558.50 M USD. If we compare this TTM figures with the last reported annuality, we can review D.R. Horton business evolution since September 2018: Annual sales up to March, compared to lastest yearly report, stepped up a decent 3.24%. However, profit margin (net income/sales) stayed steady at 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 posted $4,128.70 million in revenues for 2019-Q1, a 17.33% improvement compared to previous quarter. Reported quarter income marked $351.30 million with a profit margin of 8.51%. Profit margin stayed constant 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 remarkable gain and escalated 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 shares of a company, it's always 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 8.24% of all shares.

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

For a better understanding, the following table shows ownership data compared to other related stocks:

DHIKBHLENMDCMHO
Market cap$18.4 B$2.5 B$14.8 B$2.3 B$1.0 B
Total shares373.2 M87.0 M285.4 M61.5 M27.5 M
Float shares335.4 M78.2 M294.2 M49.3 M27.0 M
  - Institutional holdings (%)85.7%91.7%97.6%82.6%99.0%
  - Insider holdings (%)8.2%11.7%1.9%20.0%2.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

D.R. Horton summary

Friday, August 23rd, 2019
Open$50.39
Close$49.18
Day range$49.02 - $50.62
Previous close$50.34
Session gain-2.30%
Average true range$1.07
50d mov avg$45.54
100d mov avg$44.84
200d mov avg$41.17
Daily patternlt06a
Weekly pattern

D.R. Horton performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We selected , Lennar, M.D.C, M/I Homes, Meritage, NVR, Pulte and Toll Brothers as the bechmarking frame for D.R. Horton stock.
Stock3m6m12m
DHID.R. Horton10.54%21.22%11.02%
KBH6.15%19.77%14.25%
LENLennar0.25%3.65%1.23%
MDCM.D.C16.45%27.06%19.27%
MHOM/I Homes30.24%34.31%41.68%
MTHMeritage26.81%41.28%50.76%
NVR 11.92%36.67%38.10%
PHMPulte3.59%19.41%17.92%
TOLToll Brothers-0.55%-3.90%-1.50%

D.R. Horton competitors

One check before investing in any stock is to review a list of its competitors, in this case for D.R. Horton. We selected 8 companies as D.R. Horton competitors as they are in the same industry or have similar market objectives.

Latest D.R. Horton stock news