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D.R. Horton, Inc. (DHI) Stock Analysis

Momentum Cont setup

SellModerate Confidence

Consumer Cyclical · Residential Construction

Sell if holding. Analyst target reached at $154.49 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: Fannie Mae, Freddie Mac, Ginnie Mae (71.0%).

D.R. Horton is the largest U.S. homebuilder by homes closed, operating in 126 markets across 36 states through homebuilding (~92% of FY2025 revenues of $34.3B), rental, lot development (62% stake in Forestar), and financial services segments. In FY2025, the company closed 84,863... Read more

$154.49+6.5% A.UpsideScore 4.6/10#7 of 16 Residential Construction
Stop $143.68Target $163.64(resistance)A.R:R -0.5:1
Analyst target$165.29+7.0%14 analysts
$163.64our TP
$154.49price
$165.29mean
$123
$206

Sell if holding. Analyst target reached at $154.49 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: Fannie Mae, Freddie Mac, Ginnie Mae (71.0%). Chart setup: Trend continuation, RSI 63, MACD bullish. Score 4.6/10, moderate confidence.

Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 82d clear, semi cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

Thesis

Rewards
Strong earnings beat streak (3/4)
Risks
Concentration risk — Customer: Fannie Mae, Freddie Mac, Ginnie Mae (71.0%)
Analyst target reached - limited upside remaining
Weak overall score: 4.6/10

Key Metrics

P/E (TTM)14.2
P/E (Fwd)12.6
Mkt Cap$43.0B
EV/EBITDA11.3
Profit Mgn9.5%
ROE13.1%
Rev Growth-2.3%
Beta1.45
Dividend1.19%
Rating analysts27

Quality Signals

Piotroski F6/9

Options Flow

P/C4.70bearish
IV46%normal
Max Pain$105-32.0% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHCustomerFannie Mae, Freddie Mac, Ginnie Mae71%
    10-K Item 1A: 'approximately 71% of our mortgage loans were sold directly to Fannie Mae, Freddie Mac or into securities backed by Ginnie Mae, and 27% were sold to one other major financial entity'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Revenue shrinking — -2.3% YoY. Growth thesis broken unless recovery story develops.static

Earnings Growth
0.0
Revenue Growth
1.9
Declining revenue: -2%
GatesA.R:R -0.5=NEGATIVEMomentum 5.0<5.5 (soft — BUY_NOW allowed but watch)Momentum 5.0>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 82d clearSEMI CYCLE PEAK CLEARMomentum ContSuitability: Aggressive
RSI
63 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $135.18Resistance $166.98

Price Targets

$144
$164
A.Upside+5.9%
A.R:R-0.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-6.4% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-07-21 (82d)

Verdict History

reverse chrono — latest first
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Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DHI stock a buy right now?

Sell if holding. Analyst target reached at $154.49 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: Fannie Mae, Freddie Mac, Ginnie Mae (71.0%). Chart setup: Trend continuation, RSI 63, MACD bullish. Prior stop was $143.68. Score 4.6/10, moderate confidence.

What is the DHI stock price target?

Take-profit target: $163.64 (+6.5% upside). Prior stop was $143.68. Stop-loss: $143.68.

What are the risks of investing in DHI?

Concentration risk — Customer: Fannie Mae, Freddie Mac, Ginnie Mae (71.0%); Analyst target reached - limited upside remaining; Weak overall score: 4.6/10.

Is DHI overvalued or undervalued?

D.R. Horton, Inc. trades at a P/E of 14.2 (forward 12.6). TrendMatrix value score: 6.7/10. Verdict: Sell.

What do analysts say about DHI?

27 analysts cover DHI with a consensus score of 3.4/5. Average price target: $165.

What does D.R. Horton, Inc. do?D.R. Horton is the largest U.S. homebuilder by homes closed, operating in 126 markets across 36 states through...

D.R. Horton is the largest U.S. homebuilder by homes closed, operating in 126 markets across 36 states through homebuilding (~92% of FY2025 revenues of $34.3B), rental, lot development (62% stake in Forestar), and financial services segments. In FY2025, the company closed 84,863 homes at an average price of $370,400; DHI Mortgage originated 68,982 mortgage loans and sells substantially all to third-party purchasers.

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