StockNews.com Upgrades PulteGroup (NYSE:PHM) to Buy

StockNews.com upgraded shares of PulteGroup (NYSE:PHM) from a hold rating to a buy rating in a research note released on Wednesday morning.

Other analysts have also recently issued research reports about the stock. UBS Group cut shares of PulteGroup from a buy rating to a neutral rating and lifted their price objective for the stock from $93.00 to $120.00 in a research note on Thursday, January 4th. Oppenheimer increased their price target on PulteGroup from $138.00 to $143.00 and gave the stock an outperform rating in a research report on Wednesday. The Goldman Sachs Group lifted their price objective on PulteGroup from $91.00 to $105.00 and gave the company a neutral rating in a report on Thursday, January 11th. Barclays raised their price target on PulteGroup from $126.00 to $136.00 and gave the stock an overweight rating in a research report on Thursday, April 4th. Finally, Zelman & Associates raised shares of PulteGroup from a neutral rating to an outperform rating in a research report on Wednesday. Five research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of Moderate Buy and a consensus target price of $110.73.

PulteGroup Trading Down 0.4 %

Shares of NYSE:PHM opened at $112.26 on Wednesday. The stock has a market cap of $23.69 billion, a PE ratio of 8.99, a P/E/G ratio of 0.55 and a beta of 1.56. The company has a quick ratio of 0.86, a current ratio of 0.85 and a debt-to-equity ratio of 0.18. PulteGroup has a 12-month low of $64.41 and a 12-month high of $121.07. The business has a 50 day moving average of $110.90 and a 200-day moving average of $99.05.

PulteGroup (NYSE:PHM) last issued its quarterly earnings data on Tuesday, January 30th. The construction company reported $3.28 EPS for the quarter, beating analysts’ consensus estimates of $3.21 by $0.07. PulteGroup had a return on equity of 25.81% and a net margin of 16.63%. The firm had revenue of $4.29 billion for the quarter, compared to analyst estimates of $4.47 billion. During the same period in the prior year, the firm posted $3.63 EPS. The company’s revenue for the quarter was down 15.5% on a year-over-year basis. As a group, equities research analysts forecast that PulteGroup will post 11.79 earnings per share for the current year.

PulteGroup Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, April 2nd. Shareholders of record on Friday, March 15th were issued a $0.20 dividend. The ex-dividend date of this dividend was Thursday, March 14th. This represents a $0.80 dividend on an annualized basis and a yield of 0.71%. PulteGroup’s payout ratio is currently 6.41%.

PulteGroup declared that its board has initiated a share repurchase program on Tuesday, January 30th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the construction company to repurchase up to 6.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Transactions at PulteGroup

In related news, VP Brien P. O’meara sold 2,000 shares of the business’s stock in a transaction on Tuesday, February 6th. The shares were sold at an average price of $103.09, for a total transaction of $206,180.00. Following the transaction, the vice president now owns 15,389 shares in the company, valued at approximately $1,586,452.01. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.83% of the company’s stock.

Institutional Investors Weigh In On PulteGroup

Hedge funds and other institutional investors have recently bought and sold shares of the stock. E Fund Management Hong Kong Co. Ltd. acquired a new stake in shares of PulteGroup in the 1st quarter valued at about $26,000. Rakuten Securities Inc. acquired a new stake in PulteGroup in the fourth quarter valued at approximately $37,000. Lindbrook Capital LLC grew its stake in PulteGroup by 335.6% in the fourth quarter. Lindbrook Capital LLC now owns 379 shares of the construction company’s stock valued at $39,000 after acquiring an additional 292 shares during the period. Security National Bank bought a new stake in shares of PulteGroup during the fourth quarter valued at approximately $40,000. Finally, ORG Partners LLC raised its position in shares of PulteGroup by 3,463.6% during the fourth quarter. ORG Partners LLC now owns 392 shares of the construction company’s stock worth $40,000 after purchasing an additional 381 shares during the period. 89.90% 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. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names.