5 Housing Stocks to Watch

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

Number of Hedge Fund Holders: 54

Headquartered in Arlington, Texas, D.R. Horton, Inc. (NYSE:DHI) is a homebuilding company that develops and sells residential homes in multiple markets under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. 

On February 2, D.R. Horton, Inc. (NYSE:DHI) declared a $0.225 per share quarterly dividend, in line with previous, which was paid on February 25. The homebuilder expects fiscal Q2 revenue of $7.3 billion-$7.7 billion, lower than the consensus estimate of $7.75 billion. D.R. Horton, Inc. (NYSE:DHI) expects home sales gross margin of 27.5% in the quarter ending March 30, 2022, compared to 27.4% in Q4 2021.

Barclays analyst Matthew Bouley lowered the price target on D.R. Horton, Inc. (NYSE:DHI) on February 3 to $125 from $140 and kept an Overweight rating on the shares. The analyst lifted fiscal 2022 earnings estimates 9% on stronger gross margins and better selling prices. He thinks D.R. Horton, Inc. (NYSE:DHI)’s “strong ramp” in production and available inventory listings should bode well for volumes and pricing power into the spring selling season, as demand continues to exceed supply.

Egerton Capital Limited is the biggest shareholder of D.R. Horton, Inc. (NYSE:DHI) as of Q4 2021, with 8.4 million shares worth $913.2 million. Overall, 54 hedge funds were bullish on the stock at the end of December 31.