D.R. Horton Inc. (DHI) Shares Active after Upgrade at Keefe, Bruyette & Woods

D.R. Horton Inc. (NYSE: DHI) shares rose in value Tuesday Dec 13 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Analysts at Keefe, Bruyette & Woods upgraded shares of D.R. Horton Inc. (NYSE: DHI) from Market Perform to Outperform today. The company currently has a rating of Outperform on the stock. The one-year price target of $34.11 is above the opening price of $29.50, causing a number of other analysts to report on the stock recently. Looking back over the last 52 weeks, D.R. Horton Inc. stock has a high of $34.56. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.

D.R. Horton Inc. (NYSE: DHI) shares last traded at $29.23, which is an increase of $0.08 or 0.27% compared to the previous closing price. Opening at $29.50, they varied from $29.17 and $29.57 throughout the day.

D.R. Horton Inc. (NYSE: DHI) now has a market cap of 10.90B.

D.R. Horton Inc. (NYSE: DHI) Average Daily Trading Volume

344,984 shares traded hands yesterday, lower than normal, out of a total float 337,843,000. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify large volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% above normal on the breakout to show that fund managers and other professional investors are jumping in.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts that research thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.

D.R. Horton Inc. (NYSE: DHI) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

Traders can make smarter trades when they follow the trading habits of professional investors.

Trades for D.R. Horton Inc. (NYSE: DHI) have ranged from $22.97 – 34.56, and the stock now has a 50-day MA of $28.40 and 200-day MA of $30.67. Today’s last price is 15.42%% lower than the 52 week high of $34.56.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings by at least 25% for 3 consecutive years.

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