5 Best Housing Stocks to Buy Now

4. D.R. Horton, Inc. (NYSE:DHI)

Number of Hedge Fund Holders: 44

D.R. Horton, Inc. (NYSE:DHI) is an American homebuilder that operates in several regions of the North American country. Its residential home sales division operates in 31 American states and the company sells several kinds of houses such as detached and attached homes.

D.R. Horton, Inc. (NYSE:DHI) managed to keep a firm grip on its cancellations during its third fiscal quarter, as despite demand slowing down, it reported that its cancellations were being resold. The company has a large market at its disposal since the average selling price for most of its homes is below $350,000 – lower than the national average. This has also enabled D.R. Horton, Inc. (NYSE:DHI) to grow its market share from 9% in 2009 to 11% by the end of last year. Finally, the company has nearly doubled its lot count to 598,200 as of late. D.R. Horton, Inc. (NYSE:DHI) also pays a 23 cent dividend for a 1.26% yield.

Insider Monkey studied 895 hedge fund portfolios for this year’s second quarter to discover that 44 had held a stake in D.R. Horton, Inc. (NYSE:DHI).

Out of these, John Armitage’s Egerton Capital Limited is D.R. Horton, Inc. (NYSE:DHI)’s largest investor. It owns 7.6 million shares that are worth $504 million.

Palm Valley Capital Management mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Vidler Water was acquired by homebuilder D.R. Horton (NYSE:DHI) during the second quarter for $15.75 per share, a modest 19% premium to the 90-day volume weighted average price. D.R. Horton can use Vidler’s water rights to satisfy government requirements to have water resources available before it breaks ground on new housing developments in Nevada. The takeover price was below our valuation, but D.R. Horton was the only real buyer who stepped up to the plate for Vidler’s assets. The deal appears to have leaked early, since the stock surged in the weeks before the announcement.”