Dream Finders Homes (NASDAQ:DFH) Trading 7.2% Higher - Should You Buy?

On Friday, shares of Dream Finders Homes, Inc. (NASDAQ:DFH) increased by 7.2%. The stock reached a high of $32.24 before closing at $32.01. Despite this gain, the trading volume was around 70,004 shares, which is a significant decline of 83% compared to the average daily trading volume of 417,623 shares. The stock had closed at $29.85 in the previous session.

Wall Street Analysts Predict Future Growth

In recent analyst reports, Bank of America raised its price target for Dream Finders Homes from $35.00 to $38.00, maintaining a "neutral" rating for the stock.

Performance Overview

As of the latest data, Dream Finders Homes’ 50-day moving average stands at $33.48, with a 200-day moving average of $30.71. The company boasts a market capitalization of $2.93 billion and displays a price-to-earnings ratio of 10.15, alongside a PEG ratio of 0.71 and a beta of 1.89.

Dream Finders Homes recently reported its quarterly earnings on October 31st, showing an earnings per share (EPS) of $0.70. This fell short of the consensus estimate of $0.84 by $0.14. The report indicated that the company earned $986.26 million in revenue for the quarter, below expectations of $1.07 billion. Nevertheless, revenue increased by 10.4% compared to the same quarter last year. In the previous year, the EPS was $0.75, and analysts now project that the company will post earnings of $3.22 per share for the current fiscal year.

Insider Transactions

Recent insider trading includes the sale of 11,804 shares by CEO Patrick O. Zalupski on August 14th, where the shares were sold at an average price of $28.62, accumulating to approximately $337,830. Following this sale, Zalupski retains ownership of 1,130,907 shares valued around $32.37 million, reflecting a 0.00% change in ownership. Additionally, Director William Radford Lovett II sold 16,466 shares on August 22nd at an average price of $30.73, totaling about $506,000. Post-sale, Lovett holds around 4,914,124 shares worth approximately $151.01 million. Over the past 90 days, insiders have sold 341,506 shares valued at around $11.36 million, while 70.45% of the company’s stock is owned by insiders.

Institutional Ownership Trends

Institutional investors have recently traded shares of Dream Finders Homes, with Janus Henderson Group PLC increasing its holdings by 3.3% in the first quarter, now holding 22,674 shares valued at $992,000. Price T Rowe Associates boosted its position by 17.7%, owning 6,935 shares worth $304,000, while US Bancorp DE also increased its stake by 4.0%. Simplicity Wealth LLC and Versor Investments LP also grew their holdings during this period. Altogether, institutional investors currently own approximately 95.55% of the company.

Company Profile

Dream Finders Homes, Inc. operates as a holding company for Dream Finders Homes LLC, focusing on homebuilding in the United States. The company works through four primary segments: Southeast, Mid-Atlantic, Midwest, and Financial Services, creating and selling various home styles including single-family homes, active adult homes, and custom homes in several states such as Florida, Texas, and North Carolina.

Investment Consideration

Before making any investment decisions regarding Dream Finders Homes, it's advisable to weigh the market opinions of top analysts. Currently, the stock holds a "Hold" rating, indicating that investors might want to explore other options first.

DreamFinders, StockMarket, Investment