Hey there, I wanted to share my thoughts on DHI, a stock I recently invested in. I bought around 100 shares at $117, and today it reached an all-time high of $130. Now, I'm torn between taking profits or holding onto it. I'd love to hear your insights and opinions on this.
Reasons for My Investment:
One of the primary reasons I invested in DHI is the ongoing housing shortage, with about 5 million Americans in need of homes. Despite high-interest rates on mortgages, I believe some millennials are willing to “get used to” these rates in order to own a home. Additionally, there's speculation about the Federal Reserve potentially lowering interest rates, though it's been indicated that only one interest rate cut is expected for the entire year (source: The Kobeissi Letter).
Furthermore, DHI's recent Q3 earnings report was impressive, with EPS beating by almost 38% and revenue surpassing estimates by 15.61%. This suggests the company is performing well and could continue to grow.
Concerns to Consider:
While I'm bullish on DHI, there are some concerns to consider. Hedge fund owners have sold off around 2.6 million shares from January to May. While this might not be alarming, it's worth investigating their reasons behind the sell-off.
Average Price Target:
The average price target for DHI is $142, as per the analysts' consensus. While this is positive, we should remember that price targets are speculative and can change based on new information and market conditions.
Your Insights Are Welcome!
I'd appreciate any insights or opinions you have on DHI's future prospects. Are you bullish on this stock? Do you think I should take profits or HODL?
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