DR Horton (DHI) NewsBite - TOL Earnings Pull Down DHI

Posted: Thursday, August 27, 2009 11:21 AM EDT

D R Horton (NYSE: DHI) opened at $13.63. So far today, the stock has hit a low of $12.91 and a high of $13.68. DHI is now trading at $13.24, down $0.55 (-3.99%). Over the last 52 weeks the stock has ranged from a low of $3.79 to a high of $15.46. DHI shares are declining with other homebuilders this morning after competitor Toll Brothers (TOL) reported a third-quarter loss of $473 million. Excluding one-time items, TOL lost $2.93 per share, well below analysts' estimates of $1.79 per share. This could be a bad sign for DHI. Technical indicators for the stock are bullish and S&P gives DHI a positive 4 STARS (out of 5) buy ranking. If you are looking for a hedged play on DHI the stock seems like it could be a candidate for a November out-of-the-money bear-call credit spread above the 16 range. [ABR-Seven Summits Strategic Investments NewsBite]

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