Applied Finance Capital Management LLC Grows Position in D.R. Horton, Inc. (NYSE:DHI)

Applied Finance Capital Management LLC grew its holdings in shares of D.R. Horton, Inc. (NYSE:DHI) by 6.2% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 261,657 shares of the construction company’s stock after purchasing an additional 15,370 shares during the quarter. D.R. Horton makes up 1.2% of Applied Finance Capital Management LLC’s investment portfolio, making the stock its 20th largest holding. Applied Finance Capital Management LLC owned 0.08% of D.R. Horton worth $49,916,000 as of its most recent SEC filing.

Several other large investors have also recently made changes to their positions in DHI. Bfsg LLC increased its position in shares of D.R. Horton by 70.5% during the 2nd quarter. Bfsg LLC now owns 179 shares of the construction company’s stock valued at $25,000 after purchasing an additional 74 shares during the last quarter. Signature Resources Capital Management LLC bought a new position in shares of D.R. Horton during the 2nd quarter worth $31,000. Wolff Wiese Magana LLC grew its stake in shares of D.R. Horton by 1,306.7% during the 3rd quarter. Wolff Wiese Magana LLC now owns 211 shares of the construction company’s stock worth $40,000 after acquiring an additional 196 shares during the period. Grove Bank & Trust grew its stake in shares of D.R. Horton by 76.2% during the 3rd quarter. Grove Bank & Trust now owns 215 shares of the construction company’s stock worth $41,000 after acquiring an additional 93 shares during the period. Finally, Hobbs Group Advisors LLC bought a new position in shares of D.R. Horton during the 2nd quarter worth $42,000. 90.63% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have commented on DHI. JMP Securities raised their target price on D.R. Horton from $170.00 to $210.00 and gave the stock a “market outperform” rating in a research note on Friday, July 19th. Royal Bank of Canada cut their target price on D.R. Horton from $154.00 to $145.00 and set an “underperform” rating for the company in a research note on Wednesday, October 30th. Keefe, Bruyette & Woods raised their target price on D.R. Horton from $178.00 to $208.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 23rd. Wells Fargo & Company cut their target price on D.R. Horton from $220.00 to $190.00 and set an “overweight” rating for the company in a research note on Wednesday, October 30th. Finally, Evercore ISI cut their target price on D.R. Horton from $218.00 to $204.00 and set an “outperform” rating for the company in a research note on Wednesday, October 30th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and nine have given a buy rating to the company. Based on data from MarketBeat.com, D.R. Horton currently has an average rating of “Hold” and a consensus price target of $185.87.

D.R. Horton Stock Performance

Shares of NYSE DHI opened at $168.79 on Friday. The stock has a market cap of $55.00 billion, a price-to-earnings ratio of 11.75, a P/E/G ratio of 0.57 and a beta of 1.74. The company has a current ratio of 7.32, a quick ratio of 1.61 and a debt-to-equity ratio of 0.23. D.R. Horton, Inc. has a 1-year low of $120.10 and a 1-year high of $199.85. The stock’s 50-day moving average is $184.62 and its 200 day moving average is $166.17.

D.R. Horton (NYSE:DHI) last announced its quarterly earnings data on Tuesday, October 29th. The construction company reported $3.92 earnings per share for the quarter, missing analysts’ consensus estimates of $4.17 by ($0.25). The firm had revenue of $10 billion for the quarter, compared to analysts’ expectations of $10.22 billion. D.R. Horton had a net margin of 12.93% and a return on equity of 19.24%. The business’s quarterly revenue was down 4.7% on a year-over-year basis. During the same period in the prior year, the business posted $4.45 earnings per share. On average, sell-side analysts anticipate that D.R. Horton, Inc. will post 15.64 EPS for the current fiscal year.

D.R. Horton Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 19th. Stockholders of record on Tuesday, November 12th will be given a $0.40 dividend. This is a positive change from D.R. Horton’s previous quarterly dividend of $0.30. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.95%. The ex-dividend date of this dividend is Tuesday, November 12th. D.R. Horton’s dividend payout ratio (DPR) is currently 11.14%.

D.R. Horton announced that its Board of Directors has authorized a share buyback program on Thursday, July 18th that allows the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization allows the construction company to repurchase up to 6.9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

D.R. Horton Profile

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.