D.R. Horton Inc (DHI) Beta Value: Understanding the Market Risk

The price-to-earnings ratio for D.R. Horton Inc (NYSE: DHI) is above average at 11.21x. The 36-month beta value for DHI is also noteworthy at 1.73. There are mixed opinions on the stock, with 6 analysts rating it as a “buy,” 4 rating it as “overweight,” 9 rating it as “hold,” and 0 rating it as “sell.”

The public float for DHI is 283.20M, and at present, short sellers hold a 2.87% of that float. The average trading volume of DHI on December 10, 2024 was 2.46M shares.

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DHI) stock’s latest price update

The stock of D.R. Horton Inc (NYSE: DHI) has increased by 1.55 when compared to last closing price of 158.51. Despite this, the company has experienced a -3.85% fall in its stock price over the last five trading sessions. marketbeat.com reported 2024-12-09 that After the United States elected a new president, the thought of new policies, including tariffs and a view on immigration, spooked some investors out of the real estate sector. The reasons why stocks in the space pulled back recently can be attributed to both the potential cost increase from trade tariffs and the tightening supply of construction labor, which would further increase costs for homebuilders, especially.

DHI’s Market Performance

DHI’s stock has fallen by -3.85% in the past week, with a monthly drop of -4.25% and a quarterly drop of -14.17%. The volatility ratio for the week is 2.29% while the volatility levels for the last 30 days are 2.24% for D.R. Horton Inc The simple moving average for the past 20 days is -1.93% for DHI’s stock, with a -1.66% simple moving average for the past 200 days.

Analysts’ Opinion of DHI

Wedbush, on the other hand, stated in their research note that they expect to see DHI reach a price target of $165. The rating they have provided for DHI stocks is “Neutral” according to the report published on October 15th, 2024.

Citigroup gave a rating of “Neutral” to DHI, setting the target price at $156 in the report published on July 02nd of the current year.

DHI Trading at -7.69% 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 -19.46% of loss for the given period.

Volatility was left at 2.24%, however, over the last 30 days, the volatility rate increased by 2.29%, as shares sank -4.64% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -15.44% lower at present.

During the last 5 trading sessions, DHI fell by -3.85%, which changed the moving average for the period of 200-days by +10.17% in comparison to the 20-day moving average, which settled at $164.14. In addition, D.R. Horton Inc saw 5.91% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at DHI starting from Allen Barbara K, who sale 5,650 shares at the price of $163.10 back on Nov 21 ’24. After this action, Allen Barbara K now owns 0 shares of D.R. Horton Inc, valued at $921,515 using the latest closing price.

Allen Barbara K, the Director of D.R. Horton Inc, proposed sale 5,650 shares at $162.20 during a trade that took place back on Dec 04 ’24, which means that Allen Barbara K is holding shares at $916,430 based on the most recent closing price.

Stock Fundamentals for DHI

Current profitability levels for the company are sitting at:

  • 0.17 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 0.21. Equity return is now at value 19.82, with 13.71 for asset returns.

Based on D.R. Horton Inc (DHI), the company’s capital structure generated 0.19 points at debt to capital in total, while cash flow to debt ratio is standing at 0.37. The debt to equity ratio resting at 0.23. The interest coverage ratio of the stock is 45.29.

Currently, EBITDA for the company is 6.37 billion with net debt to EBITDA at 0.23. When we switch over and look at the enterprise to sales, we see a ratio of 1.44. The receivables turnover for the company is 87.33for trailing twelve months and the total asset turnover is 1.02. The liquidity ratio also appears to be rather interesting for investors as it stands at 8.35.

Conclusion

In summary, D.R. Horton Inc (DHI) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. 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.

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