These 5 Companies Just Cut Their Guidance

2. D.R. Horton, Inc. (NYSE:DHI)

Number of Hedge Fund Holders: 52

D.R. Horton, Inc. (NYSE:DHI) is a Texas-based homebuilding company that constructs residential homes in 31 states. The slowing demand for housing led D.R. Horton, Inc. (NYSE:DHI) to cut its guidance for its fiscal year ending September 30, 2022. The company now sees FY2022 consolidated revenue of $33.8 billion to $34.6 billion, below the $34.72 billion consensus and down from the $35.3 billion to $36.1 billion guidance it issued previously. Home closings are now predicted to be 83,000 to 85,000 units for the year, down from the 88,000 to 90,000 units the company priorly expected.

According to Insider Monkey’s data, 52 hedge funds were long D.R. Horton, Inc. (NYSE:DHI) at the end of Q1 2022, compared to 54 funds in the last quarter. John Armitage’s Egerton Capital Limited is the leading position holder in the company, with 7.8 million shares worth $582.5 million. 

Here is what Palm Valley Capital Fund has to say about D.R. Horton, Inc. (NYSE:DHI) in its Q2 2022 investor letter:

“Vidler Water was acquired by homebuilder D.R. Horton (NYSE:DHI) during the second quarter for $15.75 per share, a modest 19% premium to the 90-day volume weighted average price. D.R. Horton can use Vidler’s water rights to satisfy government requirements to have water resources available before it breaks ground on new housing developments in Nevada. The takeover price was below our valuation, but D.R. Horton was the only real buyer who stepped up to the plate for Vidler’s assets. The deal appears to have leaked early, since the stock surged in the weeks before the announcement.”