Wedbush Issues Negative Outlook for D.R. Horton Earnings

D.R. Horton, Inc. (NYSE:DHIFree Report) – Analysts at Wedbush cut their Q1 2025 earnings per share (EPS) estimates for D.R. Horton in a note issued to investors on Tuesday, October 29th. Wedbush analyst J. Mccanless now expects that the construction company will earn $2.24 per share for the quarter, down from their prior forecast of $2.80. Wedbush has a “Neutral” rating and a $165.00 price objective on the stock. The consensus estimate for D.R. Horton’s current full-year earnings is $14.03 per share. Wedbush also issued estimates for D.R. Horton’s Q2 2025 earnings at $2.78 EPS, Q3 2025 earnings at $3.70 EPS, FY2025 earnings at $13.17 EPS, Q1 2026 earnings at $2.45 EPS, Q2 2026 earnings at $3.20 EPS and FY2026 earnings at $15.19 EPS.

D.R. Horton (NYSE:DHIGet Free Report) last posted its quarterly earnings results on Tuesday, October 29th. The construction company reported $3.92 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.20 by ($0.28). The company had revenue of $10 billion during the quarter, compared to the consensus estimate of $10.22 billion. D.R. Horton had a net margin of 13.36% and a return on equity of 20.72%. D.R. Horton’s quarterly revenue was down 4.7% on a year-over-year basis. During the same period in the prior year, the company posted $4.45 EPS.

Several other brokerages also recently issued reports on DHI. UBS Group cut their target price on shares of D.R. Horton from $217.00 to $214.00 and set a “buy” rating on the stock in a research note on Wednesday. Wells Fargo & Company lowered their price target on shares of D.R. Horton from $220.00 to $190.00 and set an “overweight” rating on the stock in a report on Wednesday. Keefe, Bruyette & Woods boosted their price target on shares of D.R. Horton from $178.00 to $208.00 and gave the company an “outperform” rating in a report on Tuesday, July 23rd. JMP Securities boosted their price target on shares of D.R. Horton from $170.00 to $210.00 and gave the company a “market outperform” rating in a report on Friday, July 19th. Finally, JPMorgan Chase & Co. boosted their price target on shares of D.R. Horton from $163.00 to $180.00 and gave the company a “neutral” rating in a report on Tuesday, July 23rd. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and ten have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $185.87.

View Our Latest Stock Analysis on DHI

D.R. Horton Price Performance

NYSE DHI opened at $169.29 on Thursday. The business’s fifty day moving average is $187.29 and its two-hundred day moving average is $165.15. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.30 and a current ratio of 7.22. D.R. Horton has a 1 year low of $102.23 and a 1 year high of $199.85. The stock has a market capitalization of $55.75 billion, a P/E ratio of 11.52, a P/E/G ratio of 0.78 and a beta of 1.72.

D.R. Horton Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 19th. Investors of record on Tuesday, November 12th will be paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 0.95%. This is a positive change from D.R. Horton’s previous quarterly dividend of $0.30. The ex-dividend date is Tuesday, November 12th. D.R. Horton’s payout ratio is currently 8.17%.

D.R. Horton announced that its Board of Directors has approved a stock buyback plan on Thursday, July 18th that authorizes the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization authorizes the construction company to reacquire up to 6.9% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Institutional Trading of D.R. Horton

A number of hedge funds have recently modified their holdings of the company. Concurrent Investment Advisors LLC bought a new position in D.R. Horton in the first quarter worth $1,249,000. BI Asset Management Fondsmaeglerselskab A S boosted its position in shares of D.R. Horton by 85.9% during the 1st quarter. BI Asset Management Fondsmaeglerselskab A S now owns 35,167 shares of the construction company’s stock valued at $5,787,000 after acquiring an additional 16,252 shares in the last quarter. Bessemer Group Inc. raised its position in D.R. Horton by 107.6% in the first quarter. Bessemer Group Inc. now owns 14,857 shares of the construction company’s stock worth $2,444,000 after purchasing an additional 7,699 shares in the last quarter. Canada Pension Plan Investment Board lifted its stake in D.R. Horton by 92.3% during the first quarter. Canada Pension Plan Investment Board now owns 415,968 shares of the construction company’s stock worth $68,448,000 after purchasing an additional 199,668 shares during the period. Finally, Concord Investment Counsel Inc. acquired a new stake in D.R. Horton during the first quarter valued at approximately $4,161,000. Institutional investors own 90.63% of the company’s stock.

About D.R. Horton

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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.

Further Reading

Earnings History and Estimates for D.R. Horton (NYSE:DHI)

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