D.R. Horton (NYSE:DHI) Cut to “Equal Weight” at Wells Fargo & Company

Wells Fargo & Company cut shares of D.R. Horton (NYSE:DHI) from an overweight rating to an equal weight rating in a research report sent to investors on Tuesday morning, Marketbeat Ratings reports. They currently have $155.00 price objective on the construction company’s stock, down from their prior price objective of $180.00.

A number of other research firms have also commented on DHI. Citigroup lowered shares of D.R. Horton from a “market outperform” rating to a “market perform” rating in a research note on Wednesday. Barclays increased their target price on D.R. Horton from $110.00 to $132.00 and gave the company an “equal weight” rating in a report on Monday, December 8th. Royal Bank Of Canada lifted their price target on D.R. Horton from $117.00 to $118.00 and gave the company an “underperform” rating in a report on Wednesday, October 29th. Evercore ISI set a $169.00 price target on D.R. Horton and gave the company an “in-line” rating in a research report on Tuesday, October 7th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of D.R. Horton in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $158.15.

D.R. Horton Trading Up 4.6%

Shares of NYSE DHI opened at $145.75 on Tuesday. The company has a quick ratio of 1.18, a current ratio of 6.48 and a debt-to-equity ratio of 0.24. D.R. Horton has a 12 month low of $110.44 and a 12 month high of $184.54. The company has a market cap of $42.43 billion, a price-to-earnings ratio of 12.58, a P/E/G ratio of 1.66 and a beta of 1.42. The business has a fifty day simple moving average of $148.57 and a 200-day simple moving average of $153.11.

D.R. Horton (NYSE:DHI) last posted its quarterly earnings data on Tuesday, October 28th. The construction company reported $3.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.29 by ($0.25). D.R. Horton had a return on equity of 14.39% and a net margin of 10.47%.The company had revenue of $9.68 billion for the quarter, compared to analyst estimates of $9.44 billion. During the same quarter in the previous year, the firm posted $3.92 EPS. D.R. Horton’s quarterly revenue was down 3.2% on a year-over-year basis. Sell-side analysts predict that D.R. Horton will post 13.04 EPS for the current year.

D.R. Horton Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, November 20th. Shareholders of record on Thursday, November 13th were given a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Thursday, November 13th. This is an increase from D.R. Horton’s previous quarterly dividend of $0.40. D.R. Horton’s payout ratio is currently 15.53%.

Institutional Investors Weigh In On D.R. Horton

Several large investors have recently made changes to their positions in DHI. Capital World Investors raised its position in D.R. Horton by 159.8% during the third quarter. Capital World Investors now owns 30,252,842 shares of the construction company’s stock valued at $5,126,995,000 after acquiring an additional 18,607,545 shares in the last quarter. Norges Bank acquired a new position in shares of D.R. Horton during the 2nd quarter worth $494,278,000. Capital International Investors bought a new position in shares of D.R. Horton during the 3rd quarter valued at $395,179,000. Boston Partners acquired a new stake in shares of D.R. Horton in the 3rd quarter valued at $274,784,000. Finally, Berkshire Hathaway Inc bought a new stake in D.R. Horton in the second quarter worth $191,491,000. Institutional investors own 90.63% of the company’s stock.

Key Headlines Impacting D.R. Horton

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

• Positive Sentiment: Sector-level support — Barron’s says homebuilder stocks have started the year well and that ongoing housing demand (plus buyer incentives) could help sustain momentum. This is a tailwind for DHI even as analysts debate near-term outlook. Home Builder Stocks Are Off to a Good Start. What It Will Take to Keep the Momentum.
• Neutral Sentiment: Reaffirmation of market perform — Citizens JMP reiterated a “market perform” (neutral) rating on DHI; this is not a bullish endorsement but maintains coverage at the market level. Benzinga report
• Neutral Sentiment: Valuation/strategy pieces — Recent articles urge investors to reassess DHI after a ~9% pullback and look at valuation — these analyses may increase short-term selling or cautious positioning but don’t present new company-specific catalysts. Is It Time To Reassess D.R. Horton (DHI) After Recent Share Price Weakness Assessing D.R. Horton (DHI) Valuation After A Recent 9% Share Price Pullback
• Negative Sentiment: Wells Fargo downgrade — Wells Fargo cut DHI from “overweight” to “equal weight” and trimmed its price target from $180 to $155, signaling less conviction in near‑term upside and likely contributing to selling pressure. Wells Fargo downgrades DR Horton
• Negative Sentiment: Citigroup price‑target cut & neutral rating — Citigroup trimmed its DHI target from $163 to $154 and moved to a “neutral” stance, lowering expectations for near-term appreciation and pressuring the stock. Benzinga report
• Negative Sentiment: Reported downgrade(s) coverage — Additional headlines report Citizens (and other outlets) moving to a more cautious view on DHI; multiple sell-side tone changes amplify downside risk as investors reprice near-term growth and margins. Citizens downgrades DR Horton (DHI)

About D.R. Horton

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.