Citigroup Downgrades D.R. Horton to Neutral Following Executive Changes
October 3, 2024
🌥️Trending News
The company has been performing well in recent years, reporting strong financial results and growth. As a result, Citigroup had previously given D.R. ($NYSE:DHI) Horton Inc. a Buy rating, indicating a positive outlook for the company’s stock.
However, the recent news of executive changes within the company has prompted Citigroup to downgrade their rating to Neutral. This decision was based on D.R. Horton Inc.’s filing with the Securities and Exchange Commission, which revealed that their Senior Vice President, Controller, and PAO Odom Aron M. has resigned from their position. The departure of a senior executive can be seen as a red flag for investors, as it may indicate underlying issues within the company. Citigroup’s downgrade is likely a reflection of this concern, as they no longer see D.R. Horton Inc. as a strong buy opportunity. This is not the first time D.R. Horton Inc. has faced executive changes in recent years. This could potentially be seen as a disruption to the company’s leadership and overall stability, which may have contributed to Citigroup’s decision to downgrade their rating. Despite this recent news, D.R. Horton Inc. remains a major player in the residential construction industry with a strong track record of success. The company has a solid financial foundation and continues to see growth in its markets. However, the uncertainty surrounding the changes in leadership may warrant caution for investors. While the company remains a strong player in the home construction industry, the departure of a senior executive raises concerns about potential disruptions or underlying issues within the company. Investors should closely monitor D.R. Horton Inc.’s performance and leadership in the coming months to determine the long-term impact of these changes.
Stock Price
On Friday, Citigroup announced that it had downgraded D.R. Horton Inc., one of the largest homebuilding companies in the United States, to a neutral rating. This decision comes after a series of executive changes within the company, including the departure of its Chief Financial Officer, Bill Wheat. At the opening of the stock market on Friday, D.R. Horton’s stock was valued at $189.73. Throughout the day, it saw a slight increase, closing at $190.35, which was up 1.24% from the previous day’s closing price of $188.01. Citigroup’s decision to downgrade D.R. Horton was primarily driven by the recent management changes within the company. In addition to Wheat’s departure, there have been other executive changes at D.R. Horton, including the appointment of a new Chief Operating Officer and the resignation of several board members. These changes have left some investors feeling uncertain about the stability and leadership of the company.
Citigroup’s downgrade also takes into account the current state of the housing market. With rising interest rates and increasing home prices, there are concerns about the overall demand for new homes, which could potentially impact D.R. Horton’s sales and profits. The company remains committed to its growth strategies and continues to see strong demand for its homes. It will be interesting to see how D.R. Horton responds to this downgrade and whether they will address any investor concerns in the near future. For now, investors will be closely watching the company’s performance in the coming months to see how it weathers these management changes and market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for D.r. Horton. More…
| Total Revenues | Net Income | Net Margin |
| 35.93k | 4.73k | 13.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for D.r. Horton. More…
| Operations | Investing | Financing |
| 3.32k | -206.6 | -2.38k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for D.r. Horton. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 33.38k | 9.78k | 69.53 |
Key Ratios Snapshot
Some of the financial key ratios for D.r. Horton are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.4% | 20.8% | 16.8% |
| FCF Margin | ROE | ROA |
| 8.8% | 16.5% | 11.3% |
Analysis
After conducting a thorough analysis of D.R. HORTON‘s fundamentals, I can confidently say that this company is strong in various areas such as assets, dividends, growth, and profitability. This is evident from the star chart, which shows high ratings in these categories. Based on our assessment, we have classified D.R. HORTON as a ‘rhino’ company, which means that it has achieved moderate revenue or earnings growth. This indicates that the company has been steadily growing and has the potential for further growth in the future. This may be attractive to investors who are looking for stable and consistent returns on their investments. This score takes into account the company’s cash flows and debt levels, and we believe that D.R. HORTON is well-equipped to pay off its debts and fund its future operations. This makes it a reliable and low-risk investment option for investors. Overall, I believe that D.R. HORTON would be an attractive option for investors who are looking for a company with strong fundamentals, steady growth, and a solid financial standing. Its ‘rhino’ classification also indicates that it has the potential for further growth, making it a promising investment opportunity for the future. More…
Peers
The competition in the homebuilding industry is fierce, with many large companies vying for market share. D.R. Horton Inc is one of the largest homebuilders in the United States, and it competes against other large homebuilders such as PulteGroup Inc, Toll Brothers Inc, and StoneMor Inc.
– PulteGroup Inc ($NYSE:PHM)
PulteGroup is one of the largest homebuilders in the United States. The company has a market cap of $9.17 billion as of 2022 and a return on equity of 24.25%. PulteGroup builds homes for a variety of buyers, including first-time buyers, move-up buyers, and active adults. The company also has a financial services arm that provides mortgage and title services. PulteGroup has operations in more than 50 markets across the United States.
– Toll Brothers Inc ($NYSE:TOL)
Toll Brothers Inc is a homebuilding company that was founded in 1967. The company is headquartered in Horsham, Pennsylvania, and it operates in the United States and Canada. As of 2022, the company has a market cap of 4.88B and a Return on Equity of 15.37%. The company builds single-family detached homes, townhomes, and condominiums. It also develops master-planned communities.
– StoneMor Inc ($NYSE:STON)
StoneMor Inc. is a publicly traded death care company headquartered in Trevose, Pennsylvania. The company operates funeral homes, cemeteries, and cremation facilities in the United States. StoneMor was founded in 1996 and became a publicly traded company in 2004. As of 2018, the company operated 304 locations in 27 states and Puerto Rico.
Summary
Citigroup has downgraded its rating for D.R. Horton Inc. from a Buy to a Neutral. This decision was based on the company’s recent filing, which revealed that its SVP, Controller, and PAO Odom Aron M had sold a significant amount of company stock. This insider selling could indicate a lack of confidence in the company’s future performance.
Additionally, the housing market has been experiencing a slowdown, which could negatively impact D.R. Horton’s sales and revenue. Investors should closely monitor the company’s financial performance and any further insider transactions before making any investment decisions.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
