D.R. Horton Adds $5B to Buyback, Plans $3.25B Repurchases This Year
DHI is trading near its 52-week low of $131.75 (7.7% above the low).
Summary
D.R. Horton's board authorized an additional $5 billion share repurchase program with no expiration date, adding to the roughly $53 million remaining under prior authorizations. The company now expects to repurchase at least $3.25 billion of stock in the current fiscal year, a significant commitment relative to its $39 billion market cap. Shares rose 1.2% in after-hours trading to $141.85. This follows the 8-K filed earlier today and comes amid a challenging housing market where the company recently cut full-year revenue guidance. The buyback signals management's confidence in cash generation and may support the stock, but the affordability pressures noted in recent quarters remain a key risk.
At the time of this announcement, DHI was trading at $141.85 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $39.2B. The 52-week trading range was $131.75 to $177.58. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.