Traders buy large volume of DR Horton put options (NYSE:DHI)

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DR Horton, Inc. (NYSE: DHI – Get a rating) saw unusually large options trading on Wednesday. Stock traders bought 33,645 put options on the stock. This represents an increase of approximately 393% from the average daily volume of 6,823 puts.

Insider Trading at DR Horton

In other news, Director Michael W. Hewatt sold 4,000 shares of the company in a transaction dated Tuesday, August 2. The stock was sold at an average price of $77.07, for a total transaction of $308,280.00. Following the completion of the sale, the administrator now owns 1,067 shares of the company, valued at approximately $82,233.69. The transaction was disclosed in a document filed with the SEC, accessible via this hyperlink. Separately, director Michael W. Hewatt sold 4,000 shares of the company in a transaction dated Tuesday, August 2. The stock was sold at an average price of $77.07, for a total transaction of $308,280.00. Following the completion of the sale, the administrator now owns 1,067 shares of the company, valued at approximately $82,233.69. The transaction was disclosed in a document filed with the SEC, accessible via this hyperlink. Also, Vice President Aron M. Odom sold 5,000 shares in a trade that took place on Friday, July 22. The shares were sold at an average price of $77.72, for a total value of $388,600.00. Following the sale, the vice president now owns 3,024 shares of the company, valued at approximately $235,025.28. Disclosure of this sale can be found here. During the last quarter, insiders sold 11,167 shares of the company worth $851,821. 0.49% of the shares are held by company insiders.

Hedge funds weigh on DR Horton

Hedge funds have recently increased or reduced their stakes in the company. Capital World Investors increased its stake in DR Horton by 176.2% in the first quarter. Capital World Investors now owns 17,819,619 shares of the construction company valued at $1,327,740,000 after purchasing an additional 11,369,033 shares during the period. Greenhaven Associates Inc. increased its stake in DR Horton by 421.5% during the second quarter. Greenhaven Associates Inc. now owns 3,803,532 shares of the construction company worth $251,756,000 after purchasing an additional 3,074,147 shares in the last quarter. Parnassus Investments LLC purchased a new position in DR Horton during the first quarter worth approximately $162,667,000. Franklin Resources Inc. increased its stake in DR Horton shares by 34.4% in Q2. Franklin Resources Inc. now owns 6,322,186 shares of the construction company valued at $418,465,000 after acquiring an additional 1,618,629 shares in the last quarter. Finally, Principal Financial Group Inc. increased its position in DR Horton shares by 37.7% in the 1st quarter. Principal Financial Group Inc. now owns 3,680,086 shares of the construction company valued at $274,203,000 after acquiring an additional 1,006,745 shares during the period. Institutional investors hold 85.63% of the company’s shares.

DR Horton Price Performance

DHI stock traded at $4.43 at midday Wednesday, hitting $67.93. 578,704 shares of the company were traded, compared to its average volume of 3,338,868. The company has a 50-day simple moving average of $72.46 and a two-hundred-day simple moving average of $71.83 . DR Horton has a 1 year minimum of $59.25 and a 1 year maximum of $110.45. The company has a market capitalization of $23.60 billion, a price/earnings ratio of 4.65, a PEG ratio of 0.58 and a beta of 1.54. The company has a quick ratio of 0.84, a current ratio of 5.71 and a debt ratio of 0.32.

DR Horton (NYSE: DHI – Get a rating) last released its quarterly results on Thursday, July 21. The construction company reported earnings per share of $4.67 for the quarter, beating analysts’ consensus estimate of $4.49 by $0.18. DR Horton had a return on equity of 33.33% and a net margin of 17.42%. The company posted revenue of $8.79 billion in the quarter, versus $8.91 billion expected by analysts. During the same period last year, the company posted EPS of $3.06. The company’s revenue increased 20.6% year over year. On average, analysts expect DR Horton to post earnings per share of 17.01 for the current year.

DR Horton announces dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, August 11. Shareholders of record on Thursday August 4 received a dividend of $0.225 per share. The ex-dividend date was Wednesday, August 3. This represents a dividend of $0.90 on an annualized basis and a dividend yield of 1.32%. DR Horton’s payout ratio is currently 5.78%.

Analysts set new price targets

Several analysts have recently weighed in on DHI shares. Citigroup raised its target price on DR Horton to $87.00 in a Thursday, October 13 research note. JPMorgan Chase & Co. cut its price target on DR Horton from $82.50 to $80.00 and set an “overweight” rating for the company in a Tuesday, July 12 report. TheStreet upgraded DR Horton from a “c+” to a “b-” rating in a Thursday, July 21 report. Credit Suisse Group reduced its price target on DR Horton to $85.00 in a Friday, July 22 report. Finally, Barclays reduced its price target on DR Horton from $96.00 to $95.00 and set an “overweight” rating for the company in a Thursday, July 14 report. Four equity research analysts gave the stock a hold rating, ten gave the stock a buy rating and one gave the stock a strong buy rating. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $93.93.

DR Horton Company Profile

(Get a rating)

DR Horton, Inc operates as a residential construction company in the eastern, northern, southeast, south-central, southwest, and northwest regions of the United States. It deals with the acquisition and development of land; and building and selling residential homes in 31 states and 98 markets under the DR names

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