Trump Administration May Target Homebuilders Over Stock Buybacks, D.R. Horton Repurchased $4.3B
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Regulatory Scrutiny: The Trump administration may impose restrictions on homebuilders' stock buybacks amid high housing costs, indicating a focus on industry profits and price manipulation.
- Significant Buyback Amounts: D.R. Horton repurchased $4.3 billion in stock during its fiscal year, while Lennar and PulteGroup repurchased $1.7 billion and $900 million respectively, prompting regulatory scrutiny of their profit models.
- Market Reaction Expectations: Bill Pulte, director of the Federal Housing Finance Agency, indicated that builders engaging in buybacks while enjoying high profits may face penalties, urging them to lower prices and increase housing supply.
- Future Policy Directions: Trump plans to unveil more housing and affordability initiatives in the coming weeks, signaling government actions to restrict large institutional investors from purchasing single-family homes, further impacting market dynamics.
Analyst Views on DHI
Wall Street analysts forecast DHI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DHI is 160.18 USD with a low forecast of 110.00 USD and a high forecast of 195.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
4 Buy
6 Hold
2 Sell
Hold
Current: 159.710
Low
110.00
Averages
160.18
High
195.00
Current: 159.710
Low
110.00
Averages
160.18
High
195.00
About DHI
D.R. Horton, Inc. is a homebuilding company. The Company constructs and sells homes through its operating divisions in 125 markets across 36 states. The Company’s segments include Homebuilding, Rental, Forestar, Financial Services, and Other. The Homebuilding divisions are primarily engaged in the acquisition and development of land and the construction and sale of residential homes. The Company’s rental segment consists of single-family and multifamily rental operations. The single-family rental operations construct and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. The Forestar segment is a residential lot development company with operations in 59 markets across 24 states. The Financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. It also conducts insurance-related operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
