Long Position on DHI @ $109.00 on 5/12/2023 (Momentum)

D.R. Horton, Inc. (DHI) operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. 

It engages in the acquisition and development of land; and construction and sale of residential homes in 106 markets across 33 states under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes.

The company constructs and sells single-family detached homes; and attached homes, such as town homes, duplexes, and triplexes.

It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business.

In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; owns non-residential real estate, including ranch land and improvements; and owns and operates energy related assets. 

On April 20th, DHI reported 2nd Quarter March 2023 earnings of $2.73 per share on revenue of $8.0 billion. The consensus earnings estimate was $1.90 per share on revenue of $6.4 billion. 

The company said it expects fiscal 2023 revenue of $31.50 billion to $33.00 billion. The consensus revenue estimate was $28.45 billion for the year ending September 30, 2023. Shares have formed a bullish "cup and handle" and are expected to move higher out of this formation as mortgage rates cool off and stability returns to the housing market. 

Entry Point: $109.00

Stop Loss: $104.00

Trading Range: $59.25 to $111.25

Target Price: $120.00

Updates

6/12/2023 2:41:06 PM

DHI closed at $116.00

Position closed on 6/12/2023 at price of $116.00 with a 6.42% gain in 31 days.

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