NEW YORK, Jan 12, 2026, 15:07 (ET) — Regular session
- D.R. Horton shares gained roughly 1% in afternoon trading, following the upward trend seen among other major homebuilders.
- Keefe Bruyette & Woods lowered its price target for D.R. Horton to $168 from $175 but maintained a “Market Perform” rating.
- Investors are zeroing in on D.R. Horton’s Jan. 20 earnings for new insights into demand, incentives, and profit margins heading into 2026.
D.R. Horton’s shares edged up roughly 1% to $158.82 Monday afternoon, even as Keefe Bruyette & Woods lowered its price target on the homebuilder. The firm cut the target to $168 from $175 but kept its market perform rating. (MarketScreener)
This move is significant as the sector has been reacting to minor tweaks in rate forecasts and policy talk. Investors are hunting for clues that affordability is improving or that builders might reduce incentives without hurting sales.
D.R. Horton faces a key test soon. Investors are gearing up ahead of its quarterly earnings next week, following a turbulent period for housing-related shares.
Keefe Bruyette & Woods lowered its price target to $168 from $175 but stuck with a “Market Perform” rating, according to MarketScreener. The report also noted that FactSet’s average target price hovers around the low $160s. (MarketScreener)
Shares of other major homebuilders climbed as well. Lennar rose roughly 0.9%, PulteGroup added about 0.7%, and Toll Brothers increased close to 1%.
D.R. Horton, the biggest U.S. homebuilder by volume, will report its first-quarter results for the period ending Dec. 31, 2025, on Jan. 20, before markets open. The company will hold a conference call at 8:30 a.m. ET that day, it said. (D.R. Horton Investor Relations)
But the company has already cautioned that the road to a smoother spring selling season might be bumpy. In an Oct. 28 filing linked to its fiscal 2025 report, Executive Chairman David Auld noted that demand remains pressured by affordability issues. He added, “we expect our sales incentives to remain elevated in fiscal 2026,” with the exact level hinging on market conditions. The company also issued initial fiscal 2026 guidance, projecting revenue between $33.5 billion and $35.0 billion, along with roughly $2.5 billion in share buybacks. (SEC)
Housing stocks have been tossed around by news from Washington. On Jan. 9, homebuilders surged after President Donald Trump announced $200 billion in mortgage bond purchases to help lower housing costs. Analysts noted the move might tighten the spread between the 30-year mortgage rate and the 10-year Treasury yield. (Reuters)
D.R. Horton investors should watch Jan. 20 closely for clues on management’s tone, any changes to incentives or cancellations, and if order momentum is holding steady amid buyers’ sensitivity to monthly payments.
