5 Housing Stocks Redditors are Buying

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

Number of Hedge Fund Holders: 54

D.R. Horton, Inc. (NYSE:DHI) is a Texas-based home building company that constructs and sells residential properties under the D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes brands. On April 13, Michael Rehaut from JPMorgan lowered the firm’s price target on D.R. Horton, Inc. (NYSE:DHI) to $82.50 from $100 and reiterated an Overweight rating on the shares, citing a selective approach to homebuilding names. 

D.R. Horton, Inc. (NYSE:DHI) announced on April 14 that it has entered into a merger agreement with Vidler Water Resources, Inc. (NASDAQ:VWTR) for $15.75 per share in an all-cash transaction, representing a 39% premium to Vidler’s book value of equity. The company owns a portfolio of premium water rights and other water-related assets in the markets where D.R. Horton, Inc. (NYSE:DHI) needs water for development, but faces inadequate supply. The total value of the transaction is roughly $291 million and it is expected to conclude during the second quarter of 2022. 

D.R. Horton, Inc. (NYSE:DHI) reported its Q4 2021 financial results on February 2, posting earnings per share of $3.17, beating market consensus by $0.37. Revenue over the period climbed 18.88% year-over-year to $7.05 billion, outperforming Street estimates by $330.48 million. 

According to Insider Monkey’s Q4 data, 54 hedge funds placed long calls on D.R. Horton, Inc. (NYSE:DHI), compared to 51 funds in the third quarter. John Armitage’s Egerton Capital Limited is the leading stakeholder of the company, with 8.4 million shares worth $913.2 million.