D.R. Horton (NYSE:DHI) Shares Gap Up Following Earnings Beat

D.R. Horton, Inc. (NYSE:DHI)’s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $153.34, but opened at $166.98. D.R. Horton shares last traded at $165.2020, with a volume of 864,611 shares traded.

The construction company reported $2.24 EPS for the quarter, topping the consensus estimate of $2.15 by $0.09. D.R. Horton had a return on equity of 12.94% and a net margin of 9.51%.The company had revenue of $7.56 billion during the quarter, compared to the consensus estimate of $9.22 billion. During the same period last year, the company earned $2.58 EPS. D.R. Horton’s revenue for the quarter was down 2.3% on a year-over-year basis.

D.R. Horton Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 14th. Shareholders of record on Thursday, May 7th will be paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Thursday, May 7th. D.R. Horton’s payout ratio is currently 16.35%.

Trending Headlines about D.R. Horton

Here are the key news stories impacting D.R. Horton this week:

• Positive Sentiment: Q2 operating positives: management reported robust net sales orders, tighter finished-inventory and reiterated full-year revenue guidance; that underlying demand/market-share message helped push the stock higher after results. Earnings Call Highlights
• Positive Sentiment: Dividend declared: DHI announced a quarterly dividend of $0.45 per share (record May 7 / pay May 14), which supports income-focused holders. Business Wire: Dividend
• Neutral Sentiment: UBS raised its price target sharply to $206 and issued a Buy, signaling sizable upside from current levels and providing bullish analyst support. Benzinga: UBS raises PT to $206
• Neutral Sentiment: Mixed/tempered analyst moves: Wells Fargo lifted its PT to $170 (Equal Weight) while Barclays and Truist also raised PTs but still left ratings at Equal Weight/Hold—these moves narrow downside for some but don’t create unanimous buy-side momentum. Benzinga: Multiple PT updates
• Neutral Sentiment: Analysts generally updated forecasts after Q2: some raised estimates and price targets following the call, reflecting better-than-feared order momentum even as revenue trends were soft. Benzinga: Analysts increase forecasts
• Negative Sentiment: RBC raised its PT but kept an Underperform rating (PT $123), signaling some strategists still see meaningful downside relative to current shares—this conflicting message can pressure the stock. TickerReport: RBC PT/rating
• Negative Sentiment: Fundamentals headwinds: revenue missed some street estimates and management cited affordability pressures that have forced elevated buyer incentives—these items weigh on margins and the demand outlook. MarketBeat: Earnings summary
• Negative Sentiment: Broader market/headline risk: risk-off in U.S. equities (geopolitical headlines) reduced appetite for cyclical names like homebuilders, contributing to today’s pullback. Yahoo Finance: Market News

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Truist Financial boosted their price target on D.R. Horton from $140.00 to $150.00 and gave the company a “hold” rating in a research note on Wednesday. Keefe, Bruyette & Woods restated a “reduce” rating on shares of D.R. Horton in a research note on Tuesday, January 27th. UBS Group boosted their price target on D.R. Horton from $193.00 to $206.00 and gave the company a “buy” rating in a research note on Wednesday. Evercore boosted their price target on D.R. Horton from $167.00 to $169.00 and gave the company an “in-line” rating in a research note on Wednesday, January 21st. Finally, Barclays boosted their price target on D.R. Horton from $128.00 to $140.00 and gave the company an “equal weight” rating in a research note on Wednesday. Four research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $167.08.

Insider Activity

In related news, SVP Aron M. Odom sold 260 shares of the business’s stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $167.55, for a total transaction of $43,563.00. Following the completion of the transaction, the senior vice president directly owned 6,457 shares in the company, valued at approximately $1,081,870.35. The trade was a 3.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.66% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in DHI. Capital World Investors lifted its holdings in D.R. Horton by 159.8% in the 3rd quarter. Capital World Investors now owns 30,252,842 shares of the construction company’s stock worth $5,126,995,000 after purchasing an additional 18,607,545 shares in the last quarter. Norges Bank purchased a new position in D.R. Horton in the 4th quarter worth approximately $649,305,000. Capital International Investors purchased a new stake in shares of D.R. Horton during the 3rd quarter worth approximately $395,179,000. Boston Partners purchased a new stake in shares of D.R. Horton during the 3rd quarter worth approximately $274,784,000. Finally, Viking Global Investors LP raised its holdings in shares of D.R. Horton by 108.3% during the 2nd quarter. Viking Global Investors LP now owns 2,827,032 shares of the construction company’s stock worth $364,461,000 after acquiring an additional 1,469,978 shares in the last quarter. 90.63% of the stock is owned by hedge funds and other institutional investors.

D.R. Horton Stock Down 0.7%

The firm has a market capitalization of $46.65 billion, a PE ratio of 15.09, a PEG ratio of 2.61 and a beta of 1.44. The company has a fifty day moving average price of $148.29 and a 200-day moving average price of $150.60. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.98 and a current ratio of 6.46.

D.R. Horton Company Profile

D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company’s core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.

Founded in 1978 by Donald R.