The stock of D.R. Horton Inc. (NYSE: DHI) has increased by 0.62 when compared to last closing price of 142.19.Despite this, the company has seen a loss of -4.02% in its stock price over the last five trading days. The Motley Fool reported 2024-04-21 that D.R. Horton easily beat estimates on the top and bottom lines in its second-quarter report and raised its guidance. The stock looks cheap at a price-to-earnings ratio of just 10.
Is It Worth Investing in D.R. Horton Inc. (NYSE: DHI) Right Now?
The price-to-earnings ratio for D.R. Horton Inc. (NYSE: DHI) is 9.74x, which is above its average ratio. Moreover, the 36-month beta value for DHI is 1.66. Analysts have varying opinions on the stock, with 8 analysts rating it as a “buy,” 6 as “overweight,” 9 as “hold,” and 0 as “sell.”
The public float for DHI is 292.13M and currently, short sellers hold a 1.71% of that float. On April 23, 2024, DHI’s average trading volume was 2.70M shares.
DHI’s Market Performance
DHI’s stock has seen a -4.02% decrease for the week, with a -11.36% drop in the past month and a -9.28% fall in the past quarter. The volatility ratio for the week is 3.27%, and the volatility levels for the past 30 days are at 2.39% for D.R. Horton Inc.. The simple moving average for the past 20 days is -7.46% for DHI’s stock, with a 8.02% simple moving average for the past 200 days.
Analysts’ Opinion of DHI
Many brokerage firms have already submitted their reports for DHI stocks, with Wedbush repeating the rating for DHI by listing it as a “Underperform.” The predicted price for DHI in the upcoming period, according to Wedbush is $130 based on the research report published on April 02, 2024 of the current year 2024.
Keefe Bruyette gave a rating of “Outperform” to DHI, setting the target price at $164 in the report published on December 13th of the previous year.
DHI Trading at -5.62% from the 50-Day Moving Average
After a stumble in the market that brought DHI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -13.68% of loss for the given period.
Volatility was left at 2.39%, however, over the last 30 days, the volatility rate increased by 3.27%, as shares sank -11.59% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.04% lower at present.
During the last 5 trading sessions, DHI fell by -4.02%, which changed the moving average for the period of 200-days by +24.56% in comparison to the 20-day moving average, which settled at $153.67. In addition, D.R. Horton Inc. saw -5.86% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DHI starting from Auld David V, who sale 25,000 shares at the price of $156.33 back on Mar 20 ’24. After this action, Auld David V now owns 773,121 shares of D.R. Horton Inc., valued at $3,908,240 using the latest closing price.
Allen Barbara K, the Director of D.R. Horton Inc., sale 203 shares at $152.56 during a trade that took place back on Mar 19 ’24, which means that Allen Barbara K is holding 5,650 shares at $30,969 based on the most recent closing price.
Stock Fundamentals for DHI
Current profitability levels for the company are sitting at:
- 0.18 for the present operating margin
- 0.26 for the gross margin
The net margin for D.R. Horton Inc. stands at 0.13. The total capital return value is set at 0.22. Equity return is now at value 22.30, with 15.14 for asset returns.
Based on D.R. Horton Inc. (DHI), the company’s capital structure generated 0.33 points at debt to capital in total, while cash flow to debt ratio is standing at 0.2. The debt to equity ratio resting at 0.5. The interest coverage ratio of the stock is 42.57.
Currently, EBITDA for the company is 6.19 billion with net debt to EBITDA at 0.45. When we switch over and look at the enterprise to sales, we see a ratio of 1.36. The liquidity ratio also appears to be rather interesting for investors as it stands at 7.35.
Conclusion
To wrap up, the performance of D.R. Horton Inc. (DHI) has been bad in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
