Home Sectors Consumer Cyclical Present Technicals: D.R. Horton (NYSE: DHI)

Present Technicals: D.R. Horton (NYSE: DHI)


D.R. Horton is in the homebuilding and construction industry and is part of the consumer cyclical sector. D.R. Horton Inc is a residential homebuilder. It constructs for the purpose of sale, homes in the states and metropolitan markets of the United States, under the names of D.R. Horton, America’s Builder, Emerald Homes and Breland Homes.

Previous Intraday Trading Performance:

The DHI stock showed a previous change of -1.51% with an open at 37.97 and a close of 37.72. It reached an intraday high of 38.25 and a low of 37.16.

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The stock has a market cap of $14.1b with 373.4m shares outstanding, of which the float is 348.2m shares. Trading volume reached 4,938,510 shares compared to its average volume of 6,852,371 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, D.R. Horton shares returned 0.37% and in the past 30 trading days it returned 9.57%. Over three months, it changed 8.52%. In one year it has changed -20.63% and within that year its 52-week high was 47.00 and its 52-week low was 32.39. DHI stock is 16.46% above its 52 Week Low.

Our calculations show a 200 day moving average of 39.98 and a 50 day moving average of 36.67. Currently DHI stock is trading -5.66% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 3.8 that ended on 30th of September 2018, which according to the previous close, that is a PE of 9.93. Based on 19 analyst estimates, the consensus EPS for the next quarter is 1.23. The TTM EPS is 4.08, which comes to a TTM PE of 9.25. Historically, the PE high was 22.20 and the PE low was 9.25. DHI stock has set a new PE low record!

The following are the last four quarter reported earnings per share:
12-31-2018:  0.76
09-30-2018:  1.22
06-30-2018:  1.18
03-31-2018:  0.91

The dividend per share is currently 0.60, which is a dividend yield of 1.59%. Also, the payout ratio is 14.71%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 47.26, which means it is possibly undervalued and has a margin of safety of 20.18%

Indicators to Watch:

Based on the latest filings, there is 121.10% of institutional ownership. Short-interest is 12,422,803, which is 3.33% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.06. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.24

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 18.69%, return on assets is 11.57%, profit margin is 9.63%, price-to-sales is 0.88 and price-to-book is 1.54.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 5  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 5  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.