BIP Wealth LLC has significantly expanded its investment portfolio by acquiring a new position in D.R. Horton, Inc. (NYSE:DHI) during the third quarter of 2023. According to the latest filing with the Securities and Exchange Commission (SEC), the firm purchased 4,251 shares of the home construction company, valued at approximately $720,000. This move reflects growing interest in D.R. Horton among institutional investors, with several funds adjusting their holdings in recent months.
State Street Corp has increased its stake in D.R. Horton by 0.7% during the second quarter, now owning 12,636,264 shares valued at $1.63 billion. Norges Bank also made headlines by acquiring a new position worth $494.3 million during the same period. Additionally, Franklin Resources Inc. grew its holdings by 16.4%, while Invesco Ltd. increased its stake by 13.2%. Allspring Global Investments Holdings LLC raised its holdings by an impressive 42.7% during the second quarter, now owning 2,827,694 shares valued at $378.6 million. Overall, institutional investors and hedge funds collectively own 90.63% of D.R. Horton’s stock.
“D.R. Horton remains a strong player in the housing market, and its recent earnings performance has caught the attention of several institutional investors,”
said a market analyst.
On October 27, 2023, D.R. Horton’s stock opened at $155.79, reflecting a 1.5% decrease. The company maintains a robust current ratio of 6.63, a quick ratio of 1.18, and a debt-to-equity ratio of 0.23. The firm’s market capitalization is $45.35 billion, with a price-to-earnings (P/E) ratio of 14.15 and a beta of 1.42. Over the past year, D.R. Horton has seen a low of $110.44 and a high of $184.54.
D.R. Horton recently reported its earnings results for the quarter ending on January 20, 2024. The company announced earnings per share (EPS) of $2.03, surpassing analysts’ expectations of $1.98 by $0.05. Revenue for the quarter reached $6.89 billion, exceeding estimates of $6.66 billion. Despite these positive results, the firm experienced a 9.5% decrease in revenue compared to the previous year. Analysts forecast an average EPS of 13.04 for the current fiscal year.
In addition to its earnings report, D.R. Horton announced a quarterly dividend of $0.45, scheduled for payment on February 12, 2024. Shareholders on record as of February 5, 2024, will receive this dividend, representing an annualized yield of 1.2% and a dividend payout ratio of 15.53%.
As for market sentiment, several analysts have recently adjusted their price targets for D.R. Horton. Keefe, Bruyette & Woods lowered their target from $178.00 to $175.00, maintaining a “market perform” rating. Evercore ISI raised their price objective from $167.00 to $169.00, indicating a positive outlook for the company. Barclays and Bank of America also adjusted their targets downward to $129.00 and $158.00, respectively, marking a cautious approach towards the stock.
Currently, four analysts have rated D.R. Horton as a “Buy,” nine have assigned a “Hold” rating, and three have issued a “Sell” rating. The stock has a consensus rating of “Hold” and a target price of $160.92, according to MarketBeat.
As D.R. Horton continues to navigate the evolving housing market, investor interest remains strong, bolstered by institutional investments and a solid earnings report. The company, founded in 1978 by Donald R. Horton, specializes in designing, constructing, and selling residential properties across the United States, including single-family homes, townhomes, and condominiums. With complementary services in mortgage and title processing, D.R. Horton maintains an integrated approach to home sales, ensuring a streamlined experience for its customers.
