Why D.R. Horton Stock Slipped Today

Two fresh, post-earnings analyst price target cuts put D.R. Horton (NYSE: DHI) stock in the minus column on Wednesday. The busy homebuilder's shares fell by almost 4% as a result, comparing unfavorably to the flat line that was the S&P 500's (SNPINDEX: ^GSPC) performance that day.

Accentuating the negative

No less than four analysts revised their takes somewhat on D.R. Horton stock in the wake of its latest quarterly earnings report, with exactly half cutting their price targets and half raising them.

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Market players were clearly more influenced by the former group, which comprised top U.S. bank Citigroup and Keefe, Bruyette & Woods. The latter's Jade Rahmani reduced his fair-value assessment slightly, to $175 per share from his previous $178. He's still quite lukewarm on the stock, however, as he maintained his recommendation of market perform (hold, in other words).

The reasoning behind the pair of price target reductions wasn't immediately apparent. They were almost certainly based on D.R. Horton's third-quarter performance, though, as they were enacted following the company's fiscal fourth quarter of 2025 earnings release Tuesday morning.

That's a big whiff

For the period, D.R. Horton's revenue sank by 3% to just under $9.68 billion, while net income according to generally accepted accounting principles (GAAP) also declined. It slid to slightly over $905 million ($3.04 per share) from the year-ago profit of $1.28 billion.

On top of that, the company missed significantly on the bottom line, as the consensus analyst estimate was $3.29. It did, however, beat on revenue, as pundits tracking the stock were forecasting $9.42 billion.

Citigroup is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends D.R. Horton. The Motley Fool has a disclosure policy.