Why D.R. Horton Was Down 12.2% in September

Shares of D.R. Horton (NYSE: DHI) were down 12.2% in September, according to data from S&P Global Market Intelligence. The homebuilder lowered its 2021 guidance because of a tightening labor market and disruptions to its supply chain.

D.R. Horton is America's largest homebuilder by volume, closing on 80,276 homes in the last 12 months. Given the recent boom in housing prices and low housing supply across the U.S., D.R. Horton's business has done well in recent quarters. In the third quarter of 2021, which covered the three months ending June 30, revenue was up 35% to $7.3 billion, pre-tax profit margin was up 490 basis points to 19.4%, and net income was up 77% to $1.1 billion. This impressive growth has driven D.R. Horton stock higher, putting shares up more than 50% year to date at one point in 2021.

Image source: Getty Images.

Continue reading

Source Fool.com