PulteGroup (NYSE:PHM) Shares Up 7.6% – Time to Buy?

PulteGroup, Inc. (NYSE:PHM)’s share price shot up 7.6% during mid-day trading on Wednesday . The company traded as high as $137.34 and last traded at $136.1620. Approximately 284,258 shares were traded during mid-day trading, a decline of 85% from the average session volume of 1,845,893 shares. The stock had previously closed at $126.55.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Truist Financial cut their price target on shares of PulteGroup from $170.00 to $150.00 and set a “buy” rating on the stock in a research note on Thursday, April 16th. Wells Fargo & Company boosted their price objective on shares of PulteGroup from $132.00 to $140.00 and gave the company an “overweight” rating in a research note on Friday, April 24th. Seaport Research Partners restated a “sell” rating and set a $100.00 price objective (down from $155.00) on shares of PulteGroup in a report on Tuesday, April 7th. UBS Group increased their target price on PulteGroup from $159.00 to $162.00 and gave the stock a “buy” rating in a research report on Friday, April 24th. Finally, Barclays reduced their target price on PulteGroup from $115.00 to $112.00 and set an “equal weight” rating on the stock in a report on Wednesday, April 8th. Ten equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $140.71.

PulteGroup Price Performance

The company’s fifty day moving average is $120.47 and its 200 day moving average is $124.09. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.14. The stock has a market cap of $26.36 billion, a PE ratio of 13.38, a price-to-earnings-growth ratio of 1.59 and a beta of 1.20.

PulteGroup (NYSE:PHM) last announced its quarterly earnings results on Thursday, April 23rd. The construction company reported $1.79 earnings per share for the quarter, missing analysts’ consensus estimates of $1.80 by ($0.01). PulteGroup had a net margin of 12.14% and a return on equity of 16.41%. The business had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.40 billion. During the same period last year, the firm earned $2.57 earnings per share. The company’s quarterly revenue was down 12.4% on a year-over-year basis. As a group, sell-side analysts anticipate that PulteGroup, Inc. will post 10 earnings per share for the current fiscal year.

PulteGroup Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Tuesday, June 16th will be issued a dividend of $0.26 per share. The ex-dividend date is Tuesday, June 16th. This represents a $1.04 annualized dividend and a dividend yield of 0.8%. PulteGroup’s payout ratio is presently 10.06%.

PulteGroup declared that its board has authorized a stock buyback plan on Thursday, April 23rd that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the construction company to reacquire up to 6.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Lila Snyder sold 3,339 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $117.18, for a total value of $391,264.02. Following the completion of the sale, the director directly owned 3,540 shares in the company, valued at approximately $414,817.20. This represents a 48.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Matthew William Koart sold 7,457 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $120.00, for a total value of $894,840.00. Following the completion of the transaction, the chief operating officer directly owned 28,100 shares in the company, valued at $3,372,000. This trade represents a 20.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.75% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PulteGroup

A number of large investors have recently modified their holdings of the stock. Nordea Investment Management AB grew its position in PulteGroup by 2.4% in the fourth quarter. Nordea Investment Management AB now owns 573,065 shares of the construction company’s stock valued at $67,387,000 after acquiring an additional 13,259 shares in the last quarter. Concurrent Investment Advisors LLC raised its stake in shares of PulteGroup by 166.5% during the fourth quarter. Concurrent Investment Advisors LLC now owns 16,753 shares of the construction company’s stock valued at $1,964,000 after purchasing an additional 10,467 shares during the period. Dorato Capital Management acquired a new position in shares of PulteGroup during the fourth quarter worth $2,625,000. EFG Asset Management Americas Corp. boosted its stake in shares of PulteGroup by 351.9% in the third quarter. EFG Asset Management Americas Corp. now owns 46,752 shares of the construction company’s stock valued at $6,177,000 after purchasing an additional 36,407 shares during the period. Finally, Ritholtz Wealth Management boosted its stake in shares of PulteGroup by 43.2% in the fourth quarter. Ritholtz Wealth Management now owns 91,473 shares of the construction company’s stock valued at $10,726,000 after purchasing an additional 27,590 shares during the period. Institutional investors and hedge funds own 89.90% of the company’s stock.

About PulteGroup

PulteGroup, Inc (NYSE: PHM) is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.

PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.