Updated 12:14 pm EDT
D.R. Horton (DHI) -) shares moved higher Tuesday after billionaire investor Warren Buffett disclosed a new stake in the homebuilder, as well as smaller holdings in two of its rivals, as part of a larger bet on the U.S. housing market.
Securities and Exchange Commission filings indicate Buffett's Berkshire Hathaway (BRK.A) -) (BRK.B) -) investment vehicle owned around 6 million shares in D.R. Horton, a stake valued around $726 million, as of the end of June. The 13-F filings also showed stakes in high-end homebuilder Lennar Corp. (LEN) -) and NVR (NVR) -).
Buffett also trimmed Berkshire's stake in General Motors (GM) -) and slashed his shareholder in Activision Blizzard (ATVI) -) amid its regulatory effort to complete a $69 billion takeover by Microsoft (MSFT) -).
D.R. Horton last month topped Wall Street forecasts with its third-quarter earnings, posting an 11% increase in revenue to $9.7 billion and a bottom line of $1.34 billion, or $3.90 a share.
The group also lifted its full-year sales forecast, as well as homes closed, as it looks to capitalize on a U.S. housing market that is bereft of new supply and seeing buyer demand slowly improving.
"Despite continued higher mortgage rates and inflationary pressures, our net sales orders increased 37% from the prior year quarter, as the supply of both new and existing homes at affordable price points remains limited and demographics supporting housing demand remain favorable," said Donald Horton, D.R. Horton's chairman, in an investor update on July 20.
D.R. Horton shares were marked 2.15% higher in mid-day trading to change hands at $126.03 each, a move that would extend the stock's six-month gain to around 27% and value the Arlington, Texas-based group at around $42.6 billion.
