Investors Buy PulteGroup (PHM) on Weakness

Investors purchased shares of PulteGroup (NYSE:PHM) on weakness during trading on Monday. $28.96 million flowed into the stock on the tick-up and $9.26 million flowed out of the stock on the tick-down, for a money net flow of $19.70 million into the stock. Of all companies tracked, PulteGroup had the 22nd highest net in-flow for the day. PulteGroup traded down ($0.01) for the day and closed at $29.90

Several research analysts recently issued reports on PHM shares. Credit Suisse Group upgraded shares of PulteGroup to a “buy” rating and set a $38.00 target price for the company in a research report on Wednesday, January 31st. B. Riley restated a “hold” rating and set a $36.00 price target on shares of PulteGroup in a research report on Wednesday, January 31st. Zacks Investment Research lowered shares of PulteGroup from a “buy” rating to a “hold” rating in a research report on Friday, February 2nd. Royal Bank of Canada set a $39.00 price target on shares of PulteGroup and gave the company a “buy” rating in a research report on Wednesday, February 14th. Finally, Mizuho restated a “buy” rating and set a $36.00 price target on shares of PulteGroup in a research report on Thursday, March 15th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of “Buy” and a consensus target price of $35.21.

The company has a market cap of $8.54 billion, a P/E ratio of 13.64, a PEG ratio of 0.50 and a beta of 1.03.

PulteGroup (NYSE:PHM) last issued its quarterly earnings data on Tuesday, April 24th. The construction company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.44 by $0.15. The firm had revenue of $1.97 billion during the quarter, compared to the consensus estimate of $1.84 billion. PulteGroup had a net margin of 5.91% and a return on equity of 17.48%. The company’s quarterly revenue was up 20.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.31 earnings per share. sell-side analysts predict that PulteGroup will post 3.31 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 5th. Stockholders of record on Thursday, June 7th will be paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 1.20%. The ex-dividend date is Wednesday, June 6th. PulteGroup’s dividend payout ratio (DPR) is 16.44%.

PulteGroup declared that its Board of Directors has approved a stock repurchase plan on Tuesday, January 30th that permits the company to buyback $500.00 million in shares. This buyback authorization permits the construction company to purchase shares of its stock through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its stock is undervalued.

In other news, COO Harmon D. Smith sold 1,045 shares of the company’s stock in a transaction dated Tuesday, May 8th. The shares were sold at an average price of $31.32, for a total transaction of $32,729.40. Following the completion of the transaction, the chief operating officer now directly owns 308,539 shares of the company’s stock, valued at $9,663,441.48. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Cheryl W. Grise sold 14,000 shares of the company’s stock in a transaction dated Wednesday, May 2nd. The shares were sold at an average price of $30.74, for a total transaction of $430,360.00. Following the transaction, the director now directly owns 15,200 shares of the company’s stock, valued at $467,248. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 66,761 shares of company stock valued at $2,086,972. Insiders own 0.86% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. raised its stake in PulteGroup by 3.0% in the fourth quarter. BlackRock Inc. now owns 22,912,891 shares of the construction company’s stock worth $761,852,000 after buying an additional 658,662 shares in the last quarter. Greenhaven Associates Inc. raised its stake in PulteGroup by 13.5% in the first quarter. Greenhaven Associates Inc. now owns 6,522,895 shares of the construction company’s stock worth $192,360,000 after buying an additional 773,494 shares in the last quarter. Millennium Management LLC raised its stake in PulteGroup by 2,993.9% in the first quarter. Millennium Management LLC now owns 6,059,291 shares of the construction company’s stock worth $178,688,000 after buying an additional 5,863,443 shares in the last quarter. Geode Capital Management LLC raised its stake in PulteGroup by 18.8% in the fourth quarter. Geode Capital Management LLC now owns 3,962,526 shares of the construction company’s stock worth $131,550,000 after buying an additional 627,590 shares in the last quarter. Finally, Boston Partners bought a new position in PulteGroup in the first quarter worth about $109,951,000. 84.63% of the stock is owned by institutional investors.

About PulteGroup

PulteGroup, Inc, through its subsidiaries, primarily engages in the homebuilding business in the United States. The company is involved in the acquisition and development of land primarily for residential purposes; and the construction of housing on such land. It offers various home designs, including single-family detached, townhouses, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods names.

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