Some deep pocketed institutional investors are bottom-feeding in rate sensitive stocks like D.R. Horton $DHI on rumors that the Federal Reserve is considering softening its rate hike policy. On October 21, 2022, we saw large dark pool trades and substantial call option trades.
Dark Pool Trading In D.R. Horton $DHI Stock
An analysis of the dark pool trading data suggests the trades off the dark pool were buying because of how $DHI stock rose following the trades being made public.
On the same day, October 21, 2022, that we had dark pool buying, we also had a huge $1 million valued call option sweep order.
Bullish Option Flow in DR Horton $DHI Stock
In particular, a large sweep call option valued at $1.03 million for the November 18, 2022, $72.50 call hit the tape in morning trading on October 21, 2022.
D.R. Horton downgraded to Outperform from Strong Buy at Raymond James
On October 21, 2022, Raymond James analyst Buck Horne downgraded D.R. Horton to Outperform from Strong Buy with a price target of $77, down from $103. Horne has a more cautious outlook on the housing market as mortgage rates have driven down affordability to unprecedented levels. Horne said that D.R. Horton is the industry’s most cost-efficient producer of single-family housing.
D.R. Horton price target lowered at Wedbush
On October 10, 2022, Wedbush analyst Jay McCanless lowered his price target on D.R. Horton to $83 from $97 but kept an Outperform rating on the shares. McCanless said that the combination of mortgage rate buydowns and weaker demand are likely to lead to lower earnings over the next four quarters. McCanless expects positive demand to return in the first half of 2023, assuming the current demand pause is like 2018 and 2019.
Three Stock Lunch: Pfizer, DR Horton and WestRock
DR Horton $DHI Stock Technical Analysis
DR Horton $DHI stock is in a technical strong downtrend. Long-term indicators suggest a continuation of the downtrend. However, short-term indicators suggest $DHI stock is approaching oversold territory so a bounce or trend reversal is possible.