FMP
Apr 17, 2025
D.R. Horton, Inc. (NYSE:DHI) is a leading homebuilding company in the United States, known for its extensive operations in land acquisition, development, and residential construction. The company operates under various brand names and offers services like mortgage financing and title insurance. D.R. Horton competes with other major homebuilders like Lennar Corporation and PulteGroup.
The consensus price target for D.R. Horton's stock has seen a significant shift over the past year. Initially, the average price target was $176.7, but it has now decreased to $150. This change indicates that analysts have adjusted their expectations, possibly due to evolving market conditions or company-specific factors. As highlighted by J.P. Morgan, analyst Michael Rehaul has set a notably lower price target of $82.5.
D.R. Horton recently announced its fiscal 2025 second-quarter earnings, reporting a net income of $2.58 per diluted share. The company also declared a quarterly dividend of $0.40 per share. Despite these earnings, analysts predict a decline in future earnings, suggesting that the company may not meet expectations in upcoming reports. This outlook could be influencing the downward revision of price targets.
The stock has experienced a 4.6% increase in its share price during the last trading session, with above-average trading volume. However, the trend in earnings estimate revisions does not suggest sustained strength. Since the last earnings report, D.R. Horton's stock price has declined by 13.7%, raising concerns among investors about its future performance.
Investors should consider these developments and the broader economic conditions when evaluating D.R. Horton's stock. The recent decline in stock price and the adjusted price targets reflect a cautious outlook from analysts, emphasizing the need for careful analysis of the company's financial health and market position.
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