Valeo Financial Advisors LLC Strategic Acquisition of DR Horton, Inc. Shares Highlights Strong Insider Trading

Financial Advisors


Valeo Financial Advisors LLC, a prominent institutional investor, recently made headlines with its latest acquisition. The company bought an impressive new position in construction giant DR Horton in the first quarter, as revealed in its latest Form 13F filing with the Securities and Exchange Commission.

This strategic move has allowed Valeo Financial Advisors LLC to secure 3,177 shares of DR Horton stock, adding significant value to its portfolio, estimated at approximately $310,000. The acquisition underscores both Valeo Financial Advisors LLC’s confidence in DR Horton’s growth potential and the promising outlook for the construction industry as a whole.

DR Horton recently made waves in the market by announcing a quarterly dividend, an attractive proposition for shareholders looking to maximize their return on investment. Shareholders of record as of May 3 received a dividend of $0.25 per share on May 10. Not only does this demonstrate his DR Horton commitment to rewarding shareholders, but it also serves as evidence of the company’s financial stability.

From an annual perspective, this generous dividend equates to a payout ratio of 6.74%. This is a figure that reflects both the profitability and sustainability of DR Horton’s financial structure. The dividend yield is also noteworthy, at 0.83%.

In addition to these exciting developments, it’s also worth mentioning some significant insider trading that took place within DR Horton recently. COO Michael J. Murray played a key role in these transactions, selling approximately 54,000 shares of the company on May 3, valued at more than his $5 million.

The sale was executed at an average price of $110.21 per share, leaving Michael J. Murray to sell shares worth approximately $28 million based on current valuations. That said, the rest of the stock he still holds, amounting to about $28 million, is secured. He remains interested in the company’s success.

Similarly, COO Paul J. Romanowski sold 40,000 shares on May 17 at an average price of $112.16 per share, representing a total transaction value of about $4.5 million. . As a result of the sale, Mr. Romanowski now owns an astounding 84,000-plus shares. $9.4 million – highlights his commitment to DR Horton’s long-term trajectory.

It is important to note that these insider trading activities should not be interpreted as causing concern or adversely affecting the company. In fact, these actions often occur when senior executives choose to diversify their portfolios or seize opportunities based on personal financial planning rather than reflecting the company’s outlook itself.

Additionally, it is important to be aware that the ability of insiders to buy and sell stocks is strictly regulated by the Securities and Exchange Commission (SEC). Such transactions will also be promptly disclosed to filings accessible through official channels.

Overall, DR Houghton continues to attract investors with its growth potential and stable performance in the construction industry. The recent acquisition of Valeo Financial Advisors LLC reflects market confidence in the company’s future prospects, driven by both its attractive dividend policy and strong insider interest.

Shareholders will continue to monitor DR Horton’s progress as it navigates an ever-changing environment, and the company’s strong financial position and unwavering commitment to shareholder value is expected to drive continued expansion.

DR Houghton Co., Ltd.

DHI

buy

Updated: January 7, 2023

target price

the current $121.69

consensus $105.54


low $61.00

Median $101.00

expensive $159.00

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social emotions

No social sentiment data found for this stock

Analyst Rating

Analyst/Corporate evaluation
goldman sachs sell

back horn
Raymond James

sell
BTIG sell
JP Morgan sell

Kenneth Zenner
key bank

sell

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Dr. Houghton: Interesting and growth potential in the financial world


DR Horton has made waves in the financial world and has attracted the attention of various hedge funds and institutional investors. Construction firms have seen a significant change in position from these firms, indicating growing interest in the company’s growth potential.

Some prominent hedge funds have recently moved to increase their stakes in DR Horton. Clear Street Markets LLC purchased new positions during the fourth quarter and Fairfield Bush & Co. acquired shares during the first quarter. Geneos Wealth Management Inc. increased its positions by 117.3% in the fourth quarter, and Concord Wealth Partners also won new positions during the same period. Creative Capital Management Investments LLC followed suit and also bought shares during the fourth quarter.

Interestingly, institutional investors and hedge funds now own a staggering 86.67% stake in DR Horton, further cementing the level of interest surrounding the company.

Research firms are also eyeing DR Horton’s growth potential. Deutsche Bank Aktiengesellschaft began reporting on the construction company with a ‘buy’ rating, while Seaport Research Pietan reaffirmed a similar position.

Meanwhile, JPMorgan Chase downgraded DR Horton’s rating to ‘neutral’, citing concerns about over-investment in the company, and lowered its price target as a result.

Bank of America raised its price target and gave a positive outlook on DR Horton’s future performance.

These diverse perspectives from research firms indicate that there are varying opinions on whether DR Horton is worth the investment. However, Bloomberg.com reports that the overall consensus suggests an average price target of $117.09 per share and a “hold” rating.

In terms of dividends, DR Horton recently announced a quarterly dividend payment to shareholders recorded on Wednesday, May 3rd.

The ex-dividend date was Tuesday, May 2nd. This meant that investors had to own the shares prior to this date to be eligible for dividends. The dividend he paid was $0.25 per share, equivalent to an annual dividend of $1.00 and a yield of 0.83%.

DR Horton’s recent stock performance shows a positive trend. The stock opened at $120.34 on the New York Stock Exchange, demonstrating its resilience to maintain its value.

The company’s current market capitalization is a staggering $41.04 billion, reflecting its prominence in the construction industry.

With a P/E of 8.11 and a P/E of 0.69, DR Horton appears to offer a potentially lucrative investment opportunity for value-minded investors.

DR Horton’s stock has a 50-day simple moving average of $111.80, indicating a positive medium-term growth trajectory.

In addition, the company has a strong financial position with a current ratio of 6.80 and a quick ratio of 1.27, demonstrating its ability to meet its short-term obligations.

DR Horton’s debt to equity ratio is also commendable at 0.28, highlighting responsible financial management practices.

In terms of revenue performance, DR Horton has performed consistently well in recent years.

In its last earnings call on April 20, the company reported an impressive earnings per share (EPS) of $2.73 for the quarter, well above consensus expectations of $1.90.

This strong EPS performance was attributed to the construction company’s net profit margin of 15.39% and return on equity (ROE) of 25.94%, both demonstrating efficient management practices and profitability.

DR Horton made $7.97 billion worth of revenue in the quarter alone, beating market expectations of $6.48 billion.

It’s worth noting that DR Horton’s earnings are experiencing a modest decline of 0.3% year-over-year. However, this does not reverse the company’s overall positive growth trajectory.

Equity research analysts expect DR Horton to post an EPS of 11.21 for the current financial year, indicating a continued upward trend in earnings performance.

In conclusion, DR Horton is undoubtedly attracting the attention of both hedge funds and institutional investors due to its growth potential and strong financial performance.

With its solid market position, strong stock performance and consistently impressive performance, it’s clear that DR Horton is poised to become a force to watch in the construction industry.





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