D.R. Horton (NYSE:DHI) at ‘Overbought’ According to the RSI

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D.R. Horton (NYSE:DHI) is at overbought status with an RSI(14) at 93.72 .

The Relative Strength Index (RSI) is one of the most popular technical indicators used to evaluate strengthening and weakening momentum in stock price. An RSI above 70 is considered overbought while an RSI of under 30 is considered oversold. Overbought is a condition that occurs when price momentum is considered too high and the stock may be due to decline.

Volatility

D.R. Horton’s beta is at 1.25 so it is more volatile than the market as a whole that has a beta of 1. Stocks with beta’s lower than 1 are less risky than the market while those with a higher beta may be more risky than the market.

The stock’s Average True Range (ATR) is currently 0.94. The ATR is a short term indicator of volatility. It doesn’t indicate direction, just proclivity for motion.

Short Interest

Traders are feeling more bullish on the company recently if you look at the motion in short interest. The stock had a fall in short interest of -3.36% as of October 31, 2017 from the last reporting period. Short interest decreased 319,813 over that timeframe. The short-interest ratio decreased to 3.0 and the percentage of shorted shares is 0.02% as of October 31.

Recent Analyst Ratings

Equity analyst Citigroup raised the price target of the stock on November 10 changing the forecast from $42.00 to $48.00 and stated a “Neutral” rating.

Buckingham Research raised the price target on November 10 changing the price objective from $39.00 to $44.00 with a rating of “Neutral”. October 27 investment analysts at Mizuho maintained a company rating of “Hold” projecting a price of $38.00.

On October 23 Wells Fargo & Company held the company rating at “Outperform” with a current price target of $62.00. Equity analyst KeyCorp raised the price target on October 20 boosting the projection from $41.00 to $46.00 and issued a “Buy” rating.

The P/E ratio is 18.10 and market cap is 18.59B. In the latest earnings report the EPS was $2.74 with 375.04M shares now outstanding.

Company Information

D.R. Horton, Inc., launched on July 1, 1991, is a homebuilding company. The Company constructed and sold homes in 27 states and 79 markets, as of September 30, 2015. The Business’s segments include its 39 homebuilding divisions, its financial services operations and its other business activities. It operates under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, Regent Homes, Crown Communities and Pacific Ridge Homes..