Dream Finders Homes (NASDAQ:DFH) Shares Gap Up on Better-Than-Expected Earnings

Dream Finders Homes, Inc. (NASDAQ:DFH) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $21.00, but opened at $23.37. Dream Finders Homes shares last traded at $24.29, with a volume of 153,551 shares traded.

The company reported $1.35 earnings per share for the quarter, topping analysts’ consensus estimates of $1.10 by $0.25. Dream Finders Homes had a return on equity of 30.18% and a net margin of 7.65%. The business had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.39 billion. During the same quarter in the previous year, the firm earned $1.00 EPS. Dream Finders Homes’s revenue was up 35.2% on a year-over-year basis.

Analyst Ratings Changes

Separately, Bank of America reduced their price objective on Dream Finders Homes from $33.00 to $32.00 and set a “neutral” rating for the company in a research note on Monday, January 27th.

Insider Buying and Selling

In related news, CEO Patrick O. Zalupski sold 18,214 shares of the firm’s stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $27.46, for a total value of $500,156.44. Following the completion of the sale, the chief executive officer now directly owns 1,956,353 shares in the company, valued at $53,721,453.38. This trade represents a 0.92 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 70.45% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dream Finders Homes

Hedge funds and other institutional investors have recently modified their holdings of the business. First Horizon Advisors Inc. lifted its holdings in shares of Dream Finders Homes by 93.9% in the 4th quarter. First Horizon Advisors Inc. now owns 1,173 shares of the company’s stock worth $27,000 after buying an additional 568 shares during the period. Mark Sheptoff Financial Planning LLC bought a new position in shares of Dream Finders Homes during the 3rd quarter worth approximately $33,000. Wilmington Savings Fund Society FSB purchased a new stake in shares of Dream Finders Homes during the 3rd quarter valued at $63,000. FMR LLC increased its position in Dream Finders Homes by 99.4% during the 3rd quarter. FMR LLC now owns 2,945 shares of the company’s stock valued at $107,000 after buying an additional 1,468 shares in the last quarter. Finally, KLP Kapitalforvaltning AS acquired a new stake in Dream Finders Homes in the fourth quarter worth about $116,000. 95.55% of the stock is currently owned by hedge funds and other institutional investors.

Dream Finders Homes Price Performance

The company’s fifty day moving average price is $23.13 and its 200-day moving average price is $28.93. The stock has a market cap of $2.32 billion, a price-to-earnings ratio of 8.06, a P/E/G ratio of 1.28 and a beta of 2.01.

About Dream Finders Homes

Dream Finders Homes, Inc operates as a holding company for Dream Finders Homes LLC that engages in homebuilding business in the United States. The company operates through four segments: Southeast, Mid-Atlantic, Midwest, and Financial Services. It designs, constructs, and sells single-family entry-level, and first-time and second time move-up homes, as well as active adult homes and custom homes in Florida, Texas, Tennessee, North Carolina, South Carolina, Georgia, Colorado, and the Washington, DC metropolitan area.