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- 1 Berkshire Hathaway (NYSE: BRK.B) preferred homebuilder stocks like DHI stock and two others.
- 2 Analysts believe DHI shares to rise sharply and gain maximum in 2023.
- 3 DR Horton Inc. (NYSE: DHI) stock price has gained 26.48% year to date.
Warren Buffett, who runs Berkshire Hathaway (NYSE: BRK.B), recently made some new investments in homebuilder companies during the second quarter of 2023. He purchased stocks in three companies: D.R. Horton (NYSE: DHI), NVR (NYSE: NVR), and Lennar (NYSE: LEN). Among these, D.R. Horton is the largest new investment, making up 0.21% of Berkshire Hathaway’s overall assets.
DHI Stock Q3 2023 Earnings
Read on to know why analysts are extremely bullish over DR Horton Inc (NYSE: DHI)
Know DR Horton Inc. and the DHI stock Q3 2023 earnings report in this statement of Donald R. Horton, Chairman of the Board. Donald R. Horton said, “In the third quarter of 2023, the D.R. Horton team did really well”. They made $3.90 for each share of their stock, which is a good sign. They also made $1.8 billion in profit before taxes, and their total income went up by 11% to reach $9.7 billion. Their profit margin (how much money they make compared to how much they spend) was 18.3%, which is pretty good.
Even though mortgage rates (the interest you pay on a home loan) were higher, and prices for things were going up (inflation), D.R. Horton still managed to increase their sales by 37% compared to the same time last year. This is because there aren’t enough new and existing homes available at prices people can afford, and more people want to buy houses. So, their business is doing well because of these factors.
DHI stock price was at $114.64 and lost 2.75% of its market capitalization during Tuesday’s trading session. However, trading volume is below average and needs to grow during Wednesday’s trading session. So buyers may accumulate by the opening of Wednesday’s trading session as DHI shares may get support from the lower price range of the consolidation phase.
Analyzing DR Horton Inc. (NYSE: DHI) Stock’s Technical Points
DR Horton stock is currently consolidating inside a horizontal range-bound area over the daily time frame chart. However, analysts hold a bullish outlook over DHI stock price they believe as soon as DHI share price breaks out of the consolidation phase and sustains there. DHI shares may skyrocket. Explaining their bullish outlook, they even shared Donald R. Horton’s words of wisdom for DHI stock’s growth.
Coming back to the technical analysis of DHI stock price- currently, the downtrend of DHI shares can be seen over the daily time frame chart. DHI share price is trading towards the lower price range of the consolidation phase. However, buyers may come forward for the rescue of DHI shares. Meanwhile, DHI share price is trying to sustain above 100 and 200-day DMAs to recover from 20 and 50-EMAs. DHI shares have been consolidating inside the horizontal price range of $114.11 and $121.23.
Nevertheless, volume change is below average and needs to grow during Wednesday’s trading session. Technical indicators suggest the downside trend of DR Horton stock. Relative strength index (RSI) and moving average convergence divergence (MACD) confirm the slippage of DHI shares inside a horizontal range.
RSI was at 40 and is moving towards the oversold territory. The MACD line crossed the signal line downwards, registering a negative crossover. Investors in DR Horton Inc. (NYSE: DHI) need to wait for any directional change. Analysts are bullish over DHI shares.
Summary
Donald R. Horton said, “In the third quarter of 2023, the D.R. Horton team did really well”. Their profit margin (how much money they make compared to how much they spend) was 18.3%, which is pretty good. However, trading volume is below average and needs to grow during Wednesday’s trading session. Technical indicators are giving bearish signals for DR Horton stock.
Technical Levels
- Support Levels: $114.11 and $112.63
- Resistance Levels: $121.23 and $123.80
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
