Bullish options flow was detected in DHI stock on December 9, 2019.
6,662 calls trading, 2x expected, and implied vol increasing almost 2 points to 24.30%. 12/13 weekly 54 calls and 12/13 weekly 55 calls are the most active options, with total volume in those strikes near 4,600 contracts.
The bullish options flow comes a day after (December 6, 2019) Goldman Sachs gave a sell rating on DHI stock.
Goldman Sachs analyst Susan Maklari initiated coverage of D.R. Horton with a Sell rating and $51 price target. The analyst initiated coverage of six homebuilding stocks with a positive sector view as her analysis of the housing market points to an acceleration in activity next year given an accommodative rate environment with broader economic expansion. However, she believes this is already captured in the stock of D.R. Horton. The analyst looks for multiple contraction as Street expectations start to align more closely to the company’s fiscal 2020 guidance.
On November 15, 2019, SunTrust analyst Rohit Seth raised his price target on D.R. Horton to $60 and kept his Buy rating after its Q4 earnings beat along with above-consensus revenue guidance for Q1 and FY20. The analyst cites the company’s headwinds from favorable demographics and lower interest rates, adding that his data checks indicate October was its best in 35 years. Seth further notes that under his “bull case”, the price target on D.R. Horton is $68 and that he “feels good” about the company’s execution.