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D.R. Horton, Inc. (DHI) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$155.48

Change

-1.68%

Market Cap

$45.26B

Avg Volume

3.2M

Company Overview

D.R. Horton, Inc. is a prominent homebuilding company based in Arlington, Texas. They specialize in the acquisition and development of land, construction, and sale of residential homes, including single-family detached homes and attached homes like townhomes and duplexes. Their operations span 126 markets across 36 states, catering primarily to homebuyers looking for new residential properties. Additionally, they offer mortgage financing and title agency services, broadening their appeal to consumers during the homebuying process.

As the largest homebuilder in the United States, D.R. Horton holds a dominant position in the market. Their scale provides advantages in purchasing materials and land, which can lower construction costs and boost margins. However, increased competition from other builders such as Lennar and KB Home, along with rising interest rates affecting affordability, pose significant threats. Market dynamics such as fluctuating demand in residential construction can impact growth, but D.R. Horton’s established brand and operational efficiency give them a solid competitive edge.

Currently, D.R. Horton is in a growth phase, supported by strong demand for homes despite recent economic headwinds. The company achieved a 25% year-over-year increase in home sales for the most recent quarter, benefiting from favorable demographics and a shortage of homes in many markets. They are also focusing on expanding their rental properties and related services, indicating a strategic pivot to diversify their revenue streams. Recent milestones include the launch of new communities catering to first-time buyers, which positions them well for continued market penetration.

Key Financials

Market Cap

$45.26B

Revenue

$33.52B

EBITDA

$4.47B

Gross Margin

22.1%

Profit Margin

9.9%

Revenue Growth

-9.5%

Total Cash

$2.51B

Total Debt

$5.62B

Free Cash Flow

-$546.75M

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

14.15

Forward P/E

12.64

Beta

1.45

52-Week High

$184.55

52-Week Low

$110.44

EPS

$10.99

50-Day Avg

$152.55

200-Day Avg

$147.02

Price/Book

1.88

Technical Analysis

D.R. Horton, Inc. (DHI) has shown a strong upward trend over the past 52 weeks, with a current price of $155.48 reflecting a 21.4% increase from the previous year. The stock has established a key support level around $120, while the recent resistance level appears near $156, which corresponds with the current price and the peak observed in late August. Throughout this period, the stock has formed a series of higher highs and higher lows, demonstrating continuous bullish momentum despite short-term pullbacks, notably in November and December. In recent weeks, DHI has experienced increased volatility, fluctuating around $155, indicating a potential consolidation phase approaching the resistance level. The current price is situated near the upper end of its 52-week range, which suggests that upward pressure may continue if it can break above the resistance level and maintain gains.

Recent News and Developments

Here are the latest news and developments for D.R

Horton, Inc. (DHI) stock in the past week:

1. D.R. Horton Exceeds Q4 2025 Earnings and Revenue Estimates

D.R. Horton reported its fourth-quarter 2025 earnings per share (EPS) of $2.03, surpassing the consensus estimate of $1.98. The company’s revenue for the quarter also exceeded expectations, coming in at $6.89 billion against analyst estimates of $6.66 billion. This financial performance, reported around February 3, 2026, demonstrates the company’s strong operational results.

2. D.R. Horton Declares Quarterly Dividend with February Ex-Dividend Date

The homebuilding company recently announced a quarterly dividend of $0.45 per share. Investors of record on February 5, 2026, were eligible to receive this dividend, which will be paid on Thursday, February 12, 2026. This translates to an annualized dividend of $1.80 and a yield of 1.2%.

Market Sentiment and Analyst Recommendations

Bull Case

DHI just beat Q4 earnings by 2.5% and revenue by 3.5%, which matters when the broader housing market is soft. The 14.15 P/E ratio is cheap relative to the company’s historical average and well below the S&P 500, giving room for multiple expansion if mortgage rates stabilize. The balance sheet is solid with $2.51B in cash against $5.62B in debt, and the company is returning capital through a 1.2% dividend yield while maintaining buyback capacity. The stock is up 21.4% over the past year and has formed higher highs and higher lows on the chart, suggesting institutional confidence. Most critically, the housing supply shortage remains structural — DHI has pricing power and a fortress balance sheet to outlast competitors during downturns. At current levels near resistance, a break above $156 could target $170-175 based on the analyst range.

Bear Case

Revenue is down 9.5% year-over-year, which is a serious red flag regardless of the quarterly beat. The company’s current price of $155.48 is already near the top of its 52-week range and just below the $156 resistance level, leaving minimal upside and significant downside risk if sentiment shifts. Housing starts and mortgage rates remain volatile macro headwinds — any spike in rates above 7% could crater demand and compress margins. The debt-to-cash ratio of 2.2x isn’t alarming, but it limits DHI’s flexibility if the cycle turns sharply. The analyst consensus is actually “hold” not “buy” despite the earnings beat, suggesting skepticism about near-term upside. At $155, you’re buying near a peak with limited margin of safety.

What to Watch

Monitor the next earnings call for guidance on 2026 revenue and margins — the 9.5% decline needs to stabilize or reverse to justify holding above $155. Track mortgage rates closely; anything above 7.5% would likely trigger selling pressure and test the $140 support level. Watch for housing starts and building permits data each month; DHI’s backlog and order flow will signal whether demand is genuinely recovering or just bouncing. The $156 resistance level is critical — a clean break above it with volume would suggest a run toward $170, while a failed breakout and pullback below $145 would confirm the bear case. Finally, pay attention to competitor earnings (Lennar, KB Home) over the next 6-8 weeks to see if DHI’s beat is an outlier or part of a broader sector recovery. The dividend payment on February 12 is minor, but track whether the company maintains or cuts it in future quarters as a signal of confidence.

Analyst Consensus

BUY

Based on 14 analyst opinions

Low Target

$117.00

Mean Target

$160.50

High Target

$193.00

Earnings and Financial Data

Sector

Consumer Cyclical

Industry

Residential Construction

Employees

14,341

Earnings & Dividends

Next Earnings

Apr 21, 2026

EPS (Trailing)

$10.99

Dividend Yield

114.0%

Payout Ratio

15.0%

Frequently Asked Questions

Is D. R. Horton, Inc. (DHI) a good stock to buy?

Analysts recommend a BUY for DHI, with a target price of $160.50. The current P/E of 14.15 indicates the stock is reasonably valued relative to its earnings, making it an attractive buy given the housing market’s strength.

What is DHI’s price target?

The analyst target price for DHI is $160.50. This represents a potential upside from the current price of $155.48, suggesting room for growth in the near term.

Does DHI pay a dividend?

Yes, DHI has a dividend yield of 114.0%. This high yield not only provides a return on investment but also reflects the company’s strong cash flow and commitment to returning value to shareholders.

What is DHI’s market cap?

DHI’s market cap stands at $45.26 billion. This positions it as one of the larger companies in the residential construction industry, providing stability and scale.

What has been DHI’s stock price range over the past year?

DHI’s stock has traded between $110.44 and $184.55 over the last 52 weeks. This range shows volatility, but also the potential for significant growth depending on market conditions.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.