Generali Asset Management Significantly Expands Stake in D.R. Horton

Generali Asset Management SPA SGR has increased its investment in shares of D.R. Horton, Inc. (NYSE:DHI) by an impressive 76.1% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the firm now holds 53,729 shares of the construction company, having acquired an additional 23,216 shares within that period. The total value of Generali’s holdings in D.R. Horton is approximately $9.1 million as of the latest disclosure.

Other institutional investors have also been active in adjusting their positions in D.R. Horton. For example, Norges Bank established a new position valued at about $494.3 million in the second quarter. In addition, Berkshire Hathaway Inc. made a new investment in D.R. Horton worth approximately $191.5 million. Viking Global Investors LP increased its stake by 108.3%, now owning 2,827,032 shares worth around $364.5 million after purchasing an additional 1,469,978 shares. Allspring Global Investments Holdings LLC also expanded its holdings by 42.7%, now owning 2,827,694 shares valued at $378.6 million following the acquisition of 846,085 shares.

The trend of institutional investment is significant, as hedge funds and other institutional investors now control 90.63% of D.R. Horton’s stock.

Analysts Provide Mixed Ratings for D.R. Horton

Several analysts have weighed in on D.R. Horton’s stock performance. Bank of America lowered its price target from $175.00 to $165.00 while maintaining a “neutral” rating in a research note dated October 10. Conversely, BTIG Research initiated coverage on D.R. Horton on December 1, assigning a “buy” rating with a target price of $186.00. Citigroup reaffirmed a “market outperform” rating on October 30, while UBS Group raised its price objective from $187.00 to $195.00 on October 29.

Currently, one analyst has issued a “Strong Buy” rating, six have given a “Buy” rating, six have assigned a “Hold” rating, and two have rated the stock as a “Sell.” According to MarketBeat, D.R. Horton has a consensus rating of “Hold” and an average target price of $161.08.

D.R. Horton Reports Earnings and Dividend Increase

On October 28, D.R. Horton released its earnings results for the last quarter. The company reported earnings per share of $3.04, falling short of the consensus estimate of $3.29 by $0.25. The firm’s revenue reached $9.68 billion, surpassing analyst forecasts of $9.44 billion. D.R. Horton experienced a year-over-year revenue decline of 3.2%, compared to $3.92 EPS during the same period last year. Analysts predict that D.R. Horton will post earnings per share of $13.04 for the current fiscal year.

Additionally, D.R. Horton recently announced an increase in its quarterly dividend. The company paid a dividend of $0.45 on November 20 to investors who were on record by November 13. This marks an increase from the previous quarterly dividend of $0.40, bringing the annualized dividend to $1.80 with a yield of 1.2%. The company’s payout ratio stands at 15.53%.

D.R. Horton, founded in 1978 by Donald R. Horton, is a national homebuilding company involved in the design, construction, and sale of residential properties across the United States. The company’s primary focus is on building single-family homes, townhomes, and condominiums, targeting various segments of homebuyers. In addition to its core operations, D.R. Horton provides related services through subsidiaries that facilitate the mortgage, title, and closing processes for its customers, creating a streamlined experience from inventory development to home delivery.