Citigroup Adjusts Price Target on D.R. Horton to $150 From $160

US stocks fell as inflation data showed a 3.7% year-over-year increase, higher than expected. The S&P 500 dropped 1.1%, the Dow lost 0.3%, and the Nasdaq fell 1.6%. Netflix announced 6% workforce cuts, affecting nearly 1000 roles. BlackRock rose 0.1% on strong earnings, while Bank of America and State Street fell over 6% on weaker results. ASX futures indicate a 0.4% drop at open.

U.S. stocks fell Wednesday as inflation data showed a 3.7% year-over-year increase, higher than expected. The S&P 500 dropped 0.9%, the Dow lost 0.2%, and the Nasdaq fell 1.3%. Rising bond yields and Fed rate hike expectations weighed on markets. BlackRock rose 0.5% on strong earnings, while Bank of America and State Street fell over 6% after missing estimates. Homebuilders also declined due to high mortgage rates.

U.S. stocks declined Wednesday as inflation concerns grew, with the S&P 500 down 0.6% and the Nasdaq composite 0.9% lower. The 10-year Treasury yield rose to 5.26%, and traders increased bets on a Fed rate hike. BlackRock rose 1.8% on strong earnings, while Bank of America and State Street fell 7.5% and 8.2% respectively on weaker results. Homebuilders and utility stocks also dropped.

Morgan Stanley initiated coverage on D.R. Horton (NYSE:DHI) with an Equalweight rating and a $151.00 price target. The company, the largest U.S. homebuilder, trades at $136.65 with a market cap of $38.2 billion. Morgan Stanley highlights its scale and affordability focus but notes risks from rate-sensitive buyers. D.R. Horton authorized a $5 billion stock repurchase program. RBC Capital raised its price target to $125 but maintains an Underperform rating.

Lennar (NYSE: LEN) missed fiscal Q3 2026 earnings estimates, reporting adjusted EPS of $1.23 on revenue of $8.05 billion. Shares fell to a 52-week low near $76.07. Other homebuilders like D.R. Horton (NYSE: DHI) and PulteGroup (NYSE: PHM) also reported weak revenue growth and rising cancellation rates due to affordability pressures and high mortgage rates. Lennar's Q4 guidance was cautious, citing labor availability, resale competition, and market conditions as challenges.

D.R. Horton's board authorized a $5.0 billion share repurchase program for its common stock, with no expiration. The company expects at least $3.25 billion in fiscal 2026 buybacks, indicating confidence in its financial position and capital return strategy.