Analyzing the Price-to-Earnings Ratio of Dream Finders Homes Inc (DFH)

The price-to-earnings ratio for Dream Finders Homes Inc (NYSE: DFH) is above average at 8.05x. The 36-month beta value for DFH is also noteworthy at 2.00. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 3 rating it as “hold,” and 0 rating it as “sell.”

The public float for DFH is 26.26M, and at present, short sellers hold a 24.71% of that float. The average trading volume of DFH on December 19, 2024 was 565.94K shares.

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DFH) stock’s latest price update

The stock price of Dream Finders Homes Inc (NYSE: DFH) has dropped by -7.38 compared to previous close of 25.38. Despite this, the company has seen a fall of -20.58% in its stock price over the last five trading days. zacks.com reported 2024-12-16 that ZIM, MCK and DFH made it to the Zacks Rank #1 (Strong Buy) value stocks list on December 16, 2024.

DFH’s Market Performance

DFH’s stock has fallen by -20.58% in the past week, with a monthly drop of -14.11% and a quarterly drop of -35.86%. The volatility ratio for the week is 5.94% while the volatility levels for the last 30 days are 4.59% for Dream Finders Homes Inc The simple moving average for the last 20 days is -22.96% for DFH’s stock, with a simple moving average of -26.29% for the last 200 days.

Analysts’ Opinion of DFH

Many brokerage firms have already submitted their reports for DFH stocks, with RBC Capital Mkts repeating the rating for DFH by listing it as a “Underperform.” The predicted price for DFH in the upcoming period, according to RBC Capital Mkts is $8 based on the research report published on January 13, 2023 of the previous year 2023.

BofA Securities, on the other hand, stated in their research note that they expect to see DFH reach a price target of $12, previously predicting the price at $10.50. The rating they have provided for DFH stocks is “Neutral” according to the report published on August 25th, 2022.

BofA Securities gave a rating of “Underperform” to DFH, setting the target price at $10.50 in the report published on June 17th of the previous year.

DFH Trading at -24.17% from the 50-Day Moving Average

After a stumble in the market that brought DFH to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -47.03% of loss for the given period.

Volatility was left at 4.59%, however, over the last 30 days, the volatility rate increased by 5.94%, as shares sank -16.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -29.02% lower at present.

During the last 5 trading sessions, DFH fell by -20.91%, which changed the moving average for the period of 200-days by -39.46% in comparison to the 20-day moving average, which settled at $30.51. In addition, Dream Finders Homes Inc saw -33.84% 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 DFH starting from Lovett William Radford II, who sale 9,854 shares at the price of $30.52 back on Dec 06 ’24. After this action, Lovett William Radford II now owns 4,540,959 shares of Dream Finders Homes Inc, valued at $300,704 using the latest closing price.

Lovett William Radford II, the Director of Dream Finders Homes Inc, sale 7,817 shares at $31.60 during a trade that took place back on Dec 05 ’24, which means that Lovett William Radford II is holding 4,550,813 shares at $246,991 based on the most recent closing price.

Stock Fundamentals for DFH

Current profitability levels for the company are sitting at:

  • 0.1 for the present operating margin
  • 0.19 for the gross margin

The net margin for Dream Finders Homes Inc stands at 0.08. The total capital return value is set at 0.24. Equity return is now at value 27.57, with 10.79 for asset returns.

Based on Dream Finders Homes Inc (DFH), the company’s capital structure generated 0.54 points at debt to capital in total, while cash flow to debt ratio is standing at -0.24.

Currently, EBITDA for the company is 445.87 million with net debt to EBITDA at 2.99. When we switch over and look at the enterprise to sales, we see a ratio of 0.86. The receivables turnover for the company is 133.38for trailing twelve months and the total asset turnover is 1.21. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.78.

Conclusion

In summary, Dream Finders Homes Inc (DFH) has had a bad 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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