Boston Trust Sells 49,626 D.R. Horton Shares; State Street Lifts Stake 0.7%
Boston Trust Walden Corp cut its Q3 D.R. Horton stake by 17.5%, selling 49,626 shares. State Street Corp raised its position by 0.7% to 12.64 million shares valued at $1.63 billion.
1. Institutional Portfolio Adjustment
Boston Trust Walden Corp reduced its stake in D.R. Horton by 17.5% during the third quarter, disposing of 49,626 shares and retaining 233,922 shares valued at approximately $39.6 million. This reduction marks a strategic rebalancing, trimming its exposure to the homebuilder sector while still maintaining a meaningful holding representing about 0.08% of the company’s outstanding shares.
2. Peer Institutional Movements
Several large investors adjusted their D.R. Horton positions in Q2. State Street Corp added 92,219 shares, lifting its total to 12.64 million shares worth $1.63 billion. Franklin Resources increased its stake by 16.4%, acquiring 450,362 additional shares for a 3.20 million share total valued at $412.6 million. Invesco grew its position by 13.2% to 2.85 million shares, and Allspring Global Investments boosted holdings by 42.7% to 2.83 million shares. Meanwhile, Norges Bank initiated a new position valued at roughly $494.3 million. Collective institutional ownership now accounts for over 90% of the float.
3. Analyst Ratings and Targets
Brokerage updates in recent weeks reveal a mixed outlook. Wells Fargo lowered its target from $190 to $180 and maintained an overweight stance. BTIG initiated coverage with a buy rating and a $186 target. UBS raised its target from $187 to $195 and reiterated a buy recommendation. Evercore ISI assigned an in-line rating with a $169 target, while Weiss Ratings upheld a hold (C+) assessment. Overall, consensus data from MarketBeat.com shows one Strong Buy, six Buy, six Hold and two Sell ratings, culminating in an average target of $161.08.
4. Recent Financial Metrics & Dividend Increase
In its latest quarter, D.R. Horton reported revenue of $9.68 billion, slightly above the $9.44 billion consensus, but missed on EPS at $3.04 versus expectations of $3.29. Year-over-year revenue declined by 3.2%, and EPS fell from $3.92 to $3.04. The company’s return on equity stood at 14.39% with a net margin of 10.47%. The board approved a quarterly dividend of $0.45 per share, up from $0.40, translating to an annualized payout of $1.80 and a yield near 1.2%, while maintaining a conservative payout ratio of 15.5%.