D.R. Horton Q3 EPS Misses by $0.25 Despite $9.68B Revenue, Raises Dividend 12.5%
D.R. Horton reported third-quarter EPS of $3.04, missing analysts’ consensus by $0.25 on $9.68 billion revenue, which exceeded estimates by $0.24 billion but declined 3.2% year-over-year with a 10.47% net margin. The company also raised its quarterly dividend 12.5% to $0.45 per share, boosting the annualized payout to $1.80.
1. Boston Trust Walden Corp Reduces Stake by 17.5%
In the third quarter, Boston Trust Walden Corp trimmed its position in D.R. Horton by selling 49,626 shares, reducing its holdings to 233,922 shares. The divestiture represents a 17.5% decrease in the firm’s stake, which now accounts for approximately 0.08% of the company and was valued at $39.6 million as of the most recent SEC filing.
2. Institutional Investors Adjust Positions
Several major institutions also updated their D.R. Horton exposures during the second quarter. State Street Corp added 92,219 shares, bringing its total to 12.6 million shares worth $1.63 billion. Franklin Resources increased its holding by 16.4%, acquiring 450,362 additional shares for a total of 3.2 million shares valued at $412.6 million. Invesco lifted its stake by 13.2%, purchasing 333,846 shares to reach 2.85 million shares worth $368.0 million. Allspring Global Investments boosted its position by 42.7%, adding 846,085 shares to hold 2.83 million shares valued at $378.6 million, while Norges Bank initiated a new position valued at $494.3 million. Institutional ownership now stands at 90.63%.
3. Analyst Ratings and Consensus
Brokerages have recently updated their views on D.R. Horton. Wells Fargo maintained an overweight rating after lowering its objective, BTIG initiated coverage with a buy rating, UBS upgraded to a buy stance while raising its target, and Evercore ISI assigned an in-line rating. Overall, among 15 analysts, one recommends strong buy, six recommend buy, six rate the stock as hold and two rate it as sell, resulting in a consensus hold rating.
4. Quarterly Results and Dividend Hike
D.R. Horton reported third-quarter revenue of $9.68 billion, slightly exceeding consensus estimates, while adjusted EPS came in at $3.04, missing forecasts by $0.25. The company’s return on equity was 14.39% and net margin stood at 10.47%. Additionally, management announced a quarterly dividend of $0.45 per share, marking a 12.5% increase from the prior payout and translating to an annualized yield of approximately 1.2%, with a payout ratio of 15.53%.