Bank of America Securities analyst Rafe Jadrosich reiterated a Hold rating on DR Horton yesterday and set a price target of $155.00.
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Rafe Jadrosich has given his Hold rating due to a combination of factors surrounding DR Horton’s recent performance and market conditions. Despite DR Horton reporting impressive third-quarter earnings that exceeded expectations, the company’s valuation appears to limit further upside potential. The stock’s significant rise, the largest in over 15 years, suggests that much of the positive news may already be priced in.
Additionally, while DR Horton has shown resilience with stronger deliveries and margins, the housing market remains challenging with demand volatility due to affordability issues and fluctuating consumer confidence. The company’s exposure to smaller markets and community count growth provides some advantages, yet the overall environment suggests a cautious approach. Therefore, the Hold rating reflects a balanced view of the company’s current strengths and the potential constraints on future stock price appreciation.
In another report released today, Barclays also maintained a Hold rating on the stock with a $110.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DHI in relation to earlier this year.