Wedbush Has Negative Outlook of D.R. Horton Q1 Earnings

D.R. Horton, Inc. (NYSE:DHI) – Stock analysts at Wedbush lowered their Q1 2025 earnings per share estimates for D.R. Horton in a research note issued to investors on Tuesday, October 29th. Wedbush analyst J. Mccanless now expects that the construction company will post earnings per share of $2.24 for the quarter, down from their previous forecast of $2.80. Wedbush currently has a “Neutral” rating and a $165.00 target price on the stock. The consensus estimate for D.R. Horton’s current full-year earnings is $15.87 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.

A number of other research analysts have also recently weighed in on the company. Keefe, Bruyette & Woods lifted their target price on D.R. Horton from $178.00 to $208.00 and gave the company an “outperform” rating in a report on Tuesday, July 23rd. Wells Fargo & Company reduced their target price on D.R. Horton from $220.00 to $190.00 and set an “overweight” rating on the stock in a report on Wednesday. JMP Securities lifted their target price on D.R. Horton from $170.00 to $210.00 and gave the company a “market outperform” rating in a report on Friday, July 19th. Barclays reduced their target price on D.R. Horton from $200.00 to $192.00 and set an “overweight” rating on the stock in a report on Thursday. Finally, BTIG Research reduced their target price on D.R. Horton from $190.00 to $186.00 and set a “buy” rating on the stock in a report on Wednesday. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and ten have issued a buy rating to the company. According to MarketBeat, D.R. Horton has a consensus rating of “Moderate Buy” and a consensus target price of $185.33.

D.R. Horton Price Performance

DHI stock opened at $167.61 on Thursday. D.R. Horton has a 52-week low of $111.59 and a 52-week high of $199.85. The stock has a market capitalization of $54.61 billion, a price-to-earnings ratio of 11.67, a price-to-earnings-growth ratio of 0.57 and a beta of 1.72. The company has a quick ratio of 1.30, a current ratio of 7.32 and a debt-to-equity ratio of 0.23. The stock’s fifty day simple moving average is $186.47 and its 200-day simple moving average is $165.31.

D.R. Horton (NYSE:DHI) last posted its quarterly earnings data on Tuesday, October 29th. The construction company reported $3.92 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.17 by ($0.25). D.R. Horton had a return on equity of 19.24% and a net margin of 12.93%. The business had revenue of $10 billion for the quarter, compared to analyst estimates of $10.22 billion. During the same quarter last year, the business earned $4.45 EPS. D.R. Horton’s revenue for the quarter was down 4.7% compared to the same quarter last year.

Institutional Trading of D.R. Horton

A number of hedge funds and other institutional investors have recently modified their holdings of DHI. Azzad Asset Management Inc. ADV increased its holdings in D.R. Horton by 2.0% in the first quarter. Azzad Asset Management Inc. ADV now owns 8,563 shares of the construction company’s stock valued at $1,409,000 after buying an additional 166 shares during the last quarter. Valley National Advisers Inc. increased its holdings in D.R. Horton by 109.5% in the first quarter. Valley National Advisers Inc. now owns 884 shares of the construction company’s stock valued at $145,000 after buying an additional 462 shares during the last quarter. Norden Group LLC bought a new stake in D.R. Horton in the first quarter valued at about $449,000. First Trust Direct Indexing L.P. increased its holdings in D.R. Horton by 7.6% in the first quarter. First Trust Direct Indexing L.P. now owns 8,531 shares of the construction company’s stock valued at $1,404,000 after buying an additional 605 shares during the last quarter. Finally, American National Bank & Trust Co. VA bought a new stake in D.R. Horton in the first quarter valued at about $266,000. 90.63% of the stock is owned by hedge funds and other institutional investors.

D.R. Horton Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 19th. Stockholders of record on Tuesday, November 12th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.95%. This is a positive change from D.R. Horton’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Tuesday, November 12th. D.R. Horton’s payout ratio is presently 8.36%.

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

About D.R. Horton

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.