RBC Capital Cuts D.R. Horton (DHI) Price Target to $119

RBC Capital maintains its Underperform rating on D.R. Horton, setting a target price of $119, a 14.63% downside from the current price.

By TradeTexts Research Desk · Published Oct 16, 2026, 11:15 AM EDT · Updated Oct 17, 2026, 11:15 AM EDT

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RBC Capital cut its price target on D.R. Horton, Inc. ($DHI) to $119 from $125 on October 15, 2026, and rates the stock "Underperform".

Since the rating, $DHI is down 0.1% to date (from the $139.55 close on Oct 15, 2026).

DHI D.R. Horton, Inc.

$139.39 -3.50% year to date

Daily close · Oct 16, 2026

Key Points

On October 15, 2026, RBC Capital reiterated its Underperform rating on D.R. Horton, Inc. (DHI) with a price target of $119, down from $125.
RBC Capital's $119 price target implies 14.63% downside from D.R. Horton, Inc.'s ($DHI) current $139.39 share price.
The stock recently traded at $142.0, which is about 19.3% above RBC's target price.
In a broader context, analysts have mixed views on D.R. Horton, with targets ranging from $119 to $151.

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RBC Capital reiterated its Underperform rating on D.R. Horton, Inc. (NYSE: DHI) on October 15, 2026, maintaining a price target of $119. This is a decrease from its previous target of $125. The stock was recently priced at $142.0, which positions it about 19.3% above RBC's target.

Analyst rating track record

RBC Capital vs. the S&P 500

YTD return -2.24% hypothetical

All-time return -2.24% S&P 500 +3.01%

vs. S&P 500 -5.25% behind the index

Hypothetical returns from RBC Capital's disclosed trades, not real profit or advice. How we model this.

Other Institutional Activity in D.R. Horton

Several other institutional investors have also adjusted their stakes in D.R. Horton. Capital World Investors increased its holdings by 343,516 shares, bringing its total to 37,280,759 shares valued at approximately $5.2 billion. In contrast, Blackrock Inc. reduced its position by 2,867,749 shares, ending with 24,974,471 shares worth around $3.5 billion. Additionally, Vanguard Capital Management LLC trimmed its holdings by 284,154 shares, resulting in 16,937,322 shares valued at about $2.4 billion.

D.R. Horton, Inc. Stock Up 1.0%

D.R. Horton shares are currently trading at $142.0, which is significantly above the company's 52-week low. The stock's recent price is a notable 19.3% higher than RBC Capital's target price of $119, indicating a divergence in analyst sentiment.

12-month forecast

$DHI price target

D.R. Horton, Inc. daily closes and this analyst's $119 target. Not advice.

Recent Earnings

D.R. Horton reported trailing twelve-month revenue of approximately $33.4 billion and an EPS of $10.49. The company has a net margin of 9.2% and a return on equity of 12.6%. The next earnings report is scheduled for October 29, 2026.

Earnings drift grade

Outlook vs expectations on the last report — not price action.

C+ 67/100

Reported Apr 21, 2026

Forward outlook
7 analysts raised price targets.
EPS & revenue
EPS beat estimates by 3.0%. Revenue missed estimates by 1.5%.
Profit surprise
EBITDA missed by 16 percent. Operating income missed by 12 percent.
Pre-earnings setup
Expectations were about average.
Analyst signal
7 target raises.
Earnings quality
Gross margin down 2.0 points. Operating margin down 2.4 points. Positive free cash flow.

Earnings Call Summary

The company delivered a solid first quarter with $6.9 billion in revenue and $2.24 in earnings per share, beating profit expectations but falling short on sales. Orders rose 3 percent and community count jumped 12 percent year over year, reflecting broad expansion. However, management noted that incentives and rate buy-downs increased throughout the quarter and will weigh on second quarter margins, with the lowest fixed rate offer staying at 3.099 percent. Management remains cautious about affordability and demand uncertainty but feels positioned for the spring selling season.

Guidance D.R. Horton guided for about $33.5 billion to $35 billion in sales for all of fiscal 2026, with 86,000 to 88,000 homes closed. For next quarter they expect $7.3 billion to $7.8 billion in revenue and 19,700 to 20,200 closings, with gross margins of 19 to 19.5 percent because incentives are higher.

Fine but not compelling. Acceptable results that likely do not create a meaningful forward reset.

Analysts Set New Price Targets

On October 15, 2026, Citigroup maintained a Neutral rating on D.R. Horton with a price target of $150, down from $160. Earlier, on October 1, 2026, Morgan Stanley initiated coverage with an Equal-Weight rating and a target of $151. Melius Research also initiated coverage with a Sell rating and a target of $128 on October 6, 2026.

About D.R. Horton, Inc.

D.R. Horton, Inc. is a leading homebuilding company based in Arlington, Texas. It operates in various regions across the United States, focusing on the acquisition and development of land and the construction of residential homes. This latest analyst rating comes as the company prepares for its upcoming earnings report, which could provide further insights into its performance.

Bottom Line

Investors should keep an eye on D.R. Horton's upcoming earnings report on October 29, 2026, as it may influence future analyst ratings and stock performance. RBC Capital's recent reiteration of its Underperform rating highlights the mixed views among analysts regarding the company's outlook.