Long Position on DHI @ $32.75 on 12/2/2015 (Momentum)

D.R. Horton, Inc. (DHI) is a homebuilding company.

The Company is engaged in the acquisition and development of land and the construction and sale of residential homes, through its operating divisions in around 27 states and over 79 metropolitan markets of the United States, under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, Breland Homes, Regent Homes, Crown Communities and Pacific Ridge Homes.

The Company operates through two segments: homebuilding and financial services operation.

The Company designs, builds and sells single-family detached homes on lots it develops and on fully developed lots purchased ready for home construction. To a lesser extent, the Company builds and sells attached homes, such as town homes, duplexes, triplexes and condominiums.

The Company sells land and lots to other developers and homebuilders where it has excess land and lot positions or for other strategic reasons. 

Shares have formed a bullish "flag" following the company's latest quarterly report. The Company reported net income of $238.9 million, or $0.64 per share (vs. estimates of 60c), for the fourth quarter of 2015. On a YoY (year-over-year) basis, net income rose 43% from $166 million, or $0.45 per share. Higher share prices are expected for this stock.

52-Weeks Trading Range: $22.12 - $33.06

Entry Point: $32.75

Stop Loss: $31.10

Target Price: $36.05

Updates

1/27/2016 12:21:24 PM

DHI closed at $27.25

Position closed on 1/27/2016 at price of $27.25 with a -16.79% loss in 56 days.

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