D.R. Horton (NYSE:DHI) Cut to “Strong Sell” at Zacks Research

Zacks Research lowered shares of D.R. Horton (NYSE:DHI) from a hold rating to a strong sell rating in a report issued on Monday morning,Zacks.com reports.

A number of other brokerages have also recently weighed in on DHI. Royal Bank Of Canada increased their target price on shares of D.R. Horton from $117.00 to $118.00 and gave the stock an “underperform” rating in a report on Wednesday, October 29th. Barclays boosted their price objective on shares of D.R. Horton from $110.00 to $132.00 and gave the company an “equal weight” rating in a research report on Monday, December 8th. The Goldman Sachs Group reissued a “buy” rating and issued a $195.00 target price on shares of D.R. Horton in a report on Tuesday, January 13th. Evercore ISI set a $169.00 target price on D.R. Horton and gave the company an “in-line” rating in a research note on Tuesday, October 7th. Finally, Citizens Jmp reaffirmed a “market perform” rating on shares of D.R. Horton in a report on Wednesday, January 7th. Four equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $160.92.

D.R. Horton Trading Up 3.4%

Shares of NYSE DHI opened at $158.40 on Monday. The company has a quick ratio of 1.18, a current ratio of 6.48 and a debt-to-equity ratio of 0.24. The stock’s 50 day moving average price is $150.76 and its two-hundred day moving average price is $155.00. D.R. Horton has a 52-week low of $110.44 and a 52-week high of $184.54. The stock has a market capitalization of $46.11 billion, a P/E ratio of 14.39, a PEG ratio of 1.96 and a beta of 1.42.

D.R. Horton (NYSE:DHI) last issued its earnings results on Tuesday, January 20th. The construction company reported $2.03 EPS for the quarter, topping the consensus estimate of $1.98 by $0.05. The company had revenue of $6.89 billion during the quarter, compared to analyst estimates of $6.66 billion. D.R. Horton had a return on equity of 13.48% and a net margin of 9.95%.The business’s revenue was down 9.5% on a year-over-year basis. During the same quarter last year, the firm earned $2.61 EPS. On average, analysts anticipate that D.R. Horton will post 13.04 earnings per share for the current fiscal year.

D.R. Horton Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, February 12th. Shareholders of record on Thursday, February 5th will be paid a dividend of $0.45 per share. The ex-dividend date of this dividend is Thursday, February 5th. This represents a $1.80 annualized dividend and a yield of 1.1%. D.R. Horton’s payout ratio is presently 15.53%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of DHI. Capital Investment Advisory Services LLC raised its stake in shares of D.R. Horton by 5.6% during the fourth quarter. Capital Investment Advisory Services LLC now owns 1,577 shares of the construction company’s stock valued at $227,000 after purchasing an additional 84 shares in the last quarter. Greenleaf Trust increased its stake in D.R. Horton by 3.2% during the 4th quarter. Greenleaf Trust now owns 6,938 shares of the construction company’s stock valued at $999,000 after buying an additional 212 shares during the period. First United Bank & Trust raised its position in shares of D.R. Horton by 75.3% during the 4th quarter. First United Bank & Trust now owns 2,386 shares of the construction company’s stock worth $344,000 after buying an additional 1,025 shares in the last quarter. Sound Income Strategies LLC bought a new stake in shares of D.R. Horton during the 4th quarter worth about $27,000. Finally, Unison Advisors LLC lifted its stake in shares of D.R. Horton by 0.3% in the 4th quarter. Unison Advisors LLC now owns 39,064 shares of the construction company’s stock worth $5,626,000 after acquiring an additional 100 shares during the period. 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: Q1 beat on the top and bottom lines — DHI reported EPS of $2.03 and revenue of $6.89B, topping consensus and showing higher net orders (partly driven by incentives). This drove short‑term optimism. D.R. Horton Reports Fiscal 2026 First-Quarter Earnings and Declares Quarterly Dividend
• Positive Sentiment: Analysts have revised forecasts upward in some cases — a number of analysts raised targets or reiterated support after the print, providing incremental bullish pressure. These Analysts Revise Their Forecasts On D.R. Horton After Q1 Results
• Positive Sentiment: Board approved a quarterly dividend of $0.45, which supports income-oriented holders and signals cash‑flow resilience. D.R. Horton Declares $0.45 Dividend
• Neutral Sentiment: Company reaffirmed full‑year guidance and provided FY/Q2 revenue ranges; the guidance keeps expectations intact but doesn’t remove near‑term uncertainty around timing of a housing recovery. D.R. Horton Stock Tests Support Following Earnings Report
• Negative Sentiment: Underlying fundamentals show weakness year‑over‑year — revenue, EPS and net income declined significantly vs. prior year (revenue down ~9%, EPS down ~22%, net income down ~30%), which tempers enthusiasm and keeps risk elevated. D.R. Horton Stock Tests Support Following Earnings Report
• Negative Sentiment: Margin pressure expected to persist — the company and reporting outlets warn that elevated sales incentives and rate‑buydowns will likely drag Q2 margins, a key short‑term headwind for profitability. D.R. Horton Posts Lower Profit, Expects Elevated Incentives to Drag Down Second-Quarter Margins
• Negative Sentiment: Some sell‑side downgrades and target cuts — a few firms trimmed targets or ratings (including a recent Zacks downgrade), which increases short‑term selling pressure for sentiment‑sensitive shares. Zacks Research

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.