D.R. Horton Stock In Focus After Analyst Downgrade: Retail Sentiment Slides

Shares of  D.R. Horton dipped more than 1% and after-hours trading on Monday after the home builder received an analyst downgrade from BofA,  dampening retail sentiment.

BofA downgraded D.R. Horton to ‘Neutral’ from ‘Buy’ with a price target of $150, revised down from $160, Fly.com reported.

Housing demand has moderated with higher rates and input costs increasing, said the report, citing the analyst who believes D.R. is prudently adjusting to a more challenging backdrop by slowing starts and increasing share repurchases.

Margin headwinds, however, may continue through FY25, resulting in limited upside to valuation with shares already trading at premium to other builders.

Sentiment on Stocktwits turned ‘neutral’ from ‘bullish’ a week ago.  message volumes were in the high zone from extremely high.

DHI sentiment meter and message volumes on Jan 28

For its latest quarter, DHI posted earnings per share of $2.61, beating consensus estimates of $2.35; its revenues for the first quarter were $7.61 billion, compared to the $7.01 billion that Wall Street analysts anticipated.

Its net income decreased 11% to $844.9 million compared to $947.4 million in the same quarter of fiscal 2024. The company also repurchased 6.8 million shares of common stock for $1.1 billion during the first quarter of fiscal 2025, it highlighted.

For fiscal 2025, it expects consolidated revenues to range from $36 billion to $37.5 billion. That is roughly in line with $36.61 billion that Wall Street analysts expect, according to Stocktwits data.

D.R. Horton constructs and sells both single-family and multi-family rental properties, operating in 125 markets in 36 states across the U.S.

D.R. Horton stock is up 5.32% year-to-date.

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