D.R. Horton (NYSE:DHI) is one of the largest homebuilders in the United States. The company builds and sells homes across various price points. On April 21, 2026, investment firm Goldman Sachs showed confidence in DHI's future by maintaining its "Buy" rating on the stock, a recommendation for investors to purchase it.
Goldman Sachs also increased its price target for DHI to $190.00 from $172.00. A price target is an analyst's projection of a stock's future price. At the time of the news, as highlighted by TheFly, the stock's price was $162.20, suggesting potential for growth according to the firm's analysis.
This positive outlook follows the company's second-quarter earnings report. DHI announced earnings per share (EPS) of $2.24, which was higher than the estimated $2.17. EPS represents the company's profit allocated to each share of stock. However, its total revenue of $7.55 billion slightly missed the $7.60 billion expectation.
A key factor in the positive sentiment is a strong increase in customer demand. As highlighted by Zacks, net sales orders, which are new contracts to build homes, grew by 11 percent to 24,992 homes. This indicates healthy future sales despite a cancellation rate of 16 percent, which reflects the percentage of buyers who back out of contracts.
DHI also maintains a strong financial position. The company has total liquidity of $6.00 billion, meaning it has ample cash and assets that can be quickly converted to cash. Its debt-to-total capital ratio is 21.7 percent, showing it has low debt relative to its total funding. The company also declared a quarterly dividend of $0.45 per share.
