D.R. Horton Inc. (DHI) Shares Active after Upgrade at FBN Securities

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

Analysts at FBN Securities upgraded shares of D.R. Horton Inc. (NYSE: DHI) from Underperform to Sector Perform today. With a rating of Sector Perform on the shares, the company has a 52-week high of $34.56. The one-year price target of $35.14 is above the opening price of $29.95, causing a fair amount of other analysts to report on the stock recently. Share prices often shift to the upside on recommendations and new price targets of professional brokerage firms.

Meanwhile, U.S. stock futures on Monday pointed to a higher open, as investors prepared for the start of earnings season

S&P 500 futures ESZ6, +0.44% rose by 9 points, or 0.4%, to 2,155.50, while Dow Jones Industrial Average futures YMZ6, +0.40% gained 64 points, or 0.4%, to 18,221.

Nasdaq-100 futures NQZ6, +0.42% tacked on 17.75 points, or 0.4%, to 4,876.75.Meanwhile, U.S. stock futures on Monday pointed to a higher open, as investors prepared for the start of earnings season

D.R. Horton Inc. (NYSE: DHI) shares last traded at $29.99, a jump of $0.39 or 0.01 over the previous closing price. Opening at $29.95, they ranged from $29.90 and $30.11 throughout the day.

D.R. Horton Inc. (NYSE: DHI) now has a market cap of 11.16B.

D.R. Horton Inc.Trading Volume

300,703 shares traded hands yesterday, lower than normal, out of a total float 337,406,000. Trading volume is likely to increase in the next few days as investors often use upticks in trading volume to identify large volume aggregation or distribution by institutional investors.

While increased trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive signal to market traders that institutions may be moving in, so institutional sponsorship is crucial.

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 researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.

D.R. Horton Inc. 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 well planned trades when they track 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 $30.91 and 200-day MA of $31.20. Today’s last price is 0.13% lower than the 52 week high of $34.56.

Earnings growth is a crucial factor to research when buying stocks and investors identify companies that have grown their earnings at least 25% or more for the past 3 years.

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