ARLINGTON, Texas—Barbara K. Allen, a director at D.R. Horton Inc. (NYSE:DHI), has sold 5,650 shares of the company's common stock. The sale, which took place on November 21, 2024, was executed at a price of $163.10 per share, totaling approximately $921,515.
Following this transaction, Allen no longer holds any shares in the company under direct ownership. The sale was disclosed in a regulatory filing with the Securities and Exchange Commission.
D.R. Horton, headquartered in Arlington, Texas, is a leading homebuilder in the United States, known for its diverse range of residential construction projects.
In other recent news, D.R. Horton has been in the spotlight following a series of developments. The home construction company reported a 12% decrease in earnings per diluted share for Q4 2024, despite a slight increase in net income for the full year. The company's pre-tax income was $1.7 billion on revenues of $10 billion for the quarter, with home sales revenue totaling $8.9 billion from 23,647 closed homes.
In addition, D.R. Horton has revised its investment agreement with real estate developer Forestar Group Inc (NYSE:FOR)., raising the capital expenditure threshold for Forestar's investment decisions from $20 million to $45 million. D.R. Horton currently owns approximately 62% of Forestar's outstanding common stock.
Meanwhile, Raymond (NS:RYMD) James downgraded D.R. Horton shares from Outperform to Market Perform, citing increased pressures on the entry-level homebuilding market. The firm pointed to a "higher for longer" outlook on mortgage rates and housing affordability that aligns with the market's consensus.
These are recent developments that investors should keep an eye on. Looking ahead, D.R. Horton anticipates the spring selling season will be pivotal for the homebuilding volume and profit margins of fiscal 2025. The company plans to repurchase approximately $2.4 billion in stock and pay $500 million in dividends in the coming fiscal year.
InvestingPro Insights
Barbara K. Allen's recent sale of D.R. Horton shares comes at a time when the company's stock performance and financial metrics paint an intriguing picture for investors. According to InvestingPro data, D.R. Horton boasts a market capitalization of $52.04 billion, reflecting its significant presence in the homebuilding industry.
The company's P/E ratio of 11.22 suggests that the stock may be undervalued compared to its earnings, potentially indicating an attractive entry point for investors. This is particularly interesting given that D.R. Horton has demonstrated strong financial performance, with a revenue of $36.8 billion in the last twelve months as of Q4 2024, and an impressive operating income margin of 16.62%.
InvestingPro Tips highlight that D.R. Horton has raised its dividend for 11 consecutive years, showcasing a commitment to shareholder returns. This is further emphasized by the company's recent dividend growth of 60% in the last twelve months. For income-focused investors, the current dividend yield stands at 0.98%.
It's worth noting that while the company has shown strong historical performance, with a 29.76% total return over the past year, recent market sentiment appears mixed. The stock has experienced a 12.31% decline in the past three months, yet it maintains a 9.64% gain over a six-month period.
Investors should be aware that 11 analysts have revised their earnings expectations downwards for the upcoming period, which may indicate some near-term challenges. Additionally, the stock is trading at a high P/E ratio relative to its near-term earnings growth, suggesting that current valuations may be pricing in significant future growth expectations.
For those interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for D.R. Horton, providing a deeper dive into the company's financial health and market position.
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