PulteGroup, Inc. (PHM) Shares Tick Up after Upgrade at FBR & Co

PulteGroup, Inc. (NYSE: PHM) shares rose in value on Tuesday February 14 on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile U.S. stocks opened slightly lower on Tuesday. The main three benchmarks retreated after touching the latest in a series of record highs on Monday, with the S&P 500 index SPX, -0.09% down two points, or 0.1%, to 2,326.

The Dow Jones Industrial Average DJIA, -0.02% fell 34 points, or 0.2%, to 20,381. The Nasdaq Composite Index COMP, -0.13% shed eight points, or 0.1%, to 5,756.

Analysts at FBR & Co upgraded shares of PulteGroup, Inc. (NYSE: PHM) from Market Perform to Outperform today. FBR & Co currently has a rating of Outperform on the stock. The one-year price target of $23.71 is higher than the opening price of $21.79, that has caused a fair amount of other analysts to comment on the company recently. Looking back over the last 52 weeks, PulteGroup, Inc. stock has a high of $22.40. Stock prices sometimes get a spike to the upside when analysts upgrade a stock.

Yesterday PulteGroup, Inc. (NYSE: PHM) shares last traded at $21.54, a jump of $0.02 over the previous closing price. Opening at $21.79, they ranged from $21.52 and $21.88 throughout the day.

PulteGroup, Inc. (NYSE: PHM) currently has a market cap of 6.85B.

PulteGroup, Inc. (NYSE: PHM) Average Daily Trading Volume

The stock’s average daily volume is 5,279,000 shares out of a total float 282,166,000 and some 701,594 shares traded hands yesterday, 2 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

While increased trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

PulteGroup, Inc. (NYSE: PHM) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

With that in mind, PulteGroup, Inc. (NYSE: PHM) now has a 50-day MA of $19.91 and 200-day MA of $19.80. It has traded in a 52-week range between $15.55 – 22.40 and today’s last price is 3.84%% lower than the 52 week high of $22.40.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have been successful at growing their earnings at least 25% or more for the past 3 years.

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