Dream Finders Homes (NASDAQ:DFH) Shares Gap Up Following Earnings Beat

Dream Finders Homes, Inc. (NASDAQ:DFH) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. 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 trading hands.

The company reported $1.35 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.25. The company had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.39 billion. Dream Finders Homes had a net margin of 7.65% and a return on equity of 30.18%. Dream Finders Homes’s revenue for the quarter was up 35.2% compared to the same quarter last year. During the same period in the prior year, the company posted $1.00 earnings per share.

Wall Street Analyst Weigh In

Separately, Bank of America cut their price target on shares of Dream Finders Homes from $33.00 to $32.00 and set a “neutral” rating on the stock in a report on Monday, January 27th.

Insider Activity at Dream Finders Homes

In other news, CEO Patrick O. Zalupski sold 18,214 shares of the company’s stock in a transaction dated 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 transaction, the chief executive officer now directly owns 1,956,353 shares in the company, valued at approximately $53,721,453.38. This represents a 0.92 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 70.45% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

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

Dream Finders Homes Stock Up 18.2 %

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

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.