D.R. Horton, Inc. (DHI): What’s the Story?

D.R. Horton, Inc. (DHI) is an interesting player in the Industrial Goods space, with a focus on Residential Construction. The stock has been active on the tape, currently trading at $43.04, down from yesterday’s close by -4.19%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

D.R. Horton, Inc. (DHI) currently trades with a market capitalization of $15.56 Billion. That value represents a market adjusting for revenues that have been growing by 16.71 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $298.3 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.08 on a per share basis this quarter. Perhaps, that suggests something about why 6.58% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, D.R. Horton, Inc. recorded a 52-week high of $53.32. It is now trading 10.28% off that level. The stock is trading $43.61 its 50-day moving average by 0.57%. The stock carved out a 52-week low down at $33.27.

In recent action, D.R. Horton, Inc. (DHI) has made a move of +6.06% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.57, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.55% with $353.53 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of DHI.

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