D.R. Horton downgraded to Neutral from Buy at Citigroup Citigroup downgraded D.R. Horton citing valuation and elevated risk into builders' earnings releases starting next week. Citi lowered its price target for shares to $26 from $27.
D.R. Horton says sales trends 'solid' in July Sees Q4 backlog conversion rate 81%-84%. Sees Q4 home sales gross margin in high 19%-20% range. Sees Q4 homebuilding SG&A 8.7%-8.9% of homebuilding revenues. Says sales trends "solid" in July. Sees Q4 Financial Services operating margin 35%-40%. Sees Q4 tax rate 35%-36%. Sees Q4 average selling price $285,000-$290,000. Comments made on the Q3 earnings conference call. D.R. Horton is down 0.52% to $26.60 in morning trading.