PulteGroup (NYSE:PHM) Shares Up 4.1% – Still a Buy?

Shares of PulteGroup, Inc. (NYSE:PHM) shot up 4.1% on Friday . The company traded as high as $104.07 and last traded at $101.81. 1,690,732 shares traded hands during mid-day trading, a decline of 25% from the average session volume of 2,264,601 shares. The stock had previously closed at $97.75.

Analyst Ratings Changes

Several brokerages recently issued reports on PHM. StockNews.com downgraded PulteGroup from a “buy” rating to a “hold” rating in a research report on Wednesday, December 11th. JPMorgan Chase & Co. decreased their target price on PulteGroup from $162.00 to $155.00 and set an “overweight” rating for the company in a report on Friday, December 13th. UBS Group increased their target price on PulteGroup from $148.00 to $151.00 and gave the company a “buy” rating in a research note on Friday, January 31st. Oppenheimer dropped their price target on shares of PulteGroup from $165.00 to $150.00 and set an “outperform” rating on the stock in a research note on Friday, January 31st. Finally, Citigroup reduced their target price on PulteGroup from $146.00 to $119.00 and set a “neutral” rating for the company in a research note on Monday, January 6th. Seven equities research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $140.86.

PulteGroup Stock Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 0.86 and a quick ratio of 0.86. The stock has a fifty day moving average price of $106.12 and a two-hundred day moving average price of $120.07. The company has a market cap of $20.46 billion, a P/E ratio of 6.87, a PEG ratio of 0.29 and a beta of 1.44.

PulteGroup (NYSE:PHM) last announced its earnings results on Thursday, January 30th. The construction company reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.28 by $0.22. PulteGroup had a return on equity of 24.43% and a net margin of 17.18%. On average, equities analysts forecast that PulteGroup, Inc. will post 12.32 earnings per share for the current fiscal year.

PulteGroup Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 2nd. Shareholders of record on Tuesday, March 18th were paid a dividend of $0.22 per share. The ex-dividend date was Tuesday, March 18th. This represents a $0.88 annualized dividend and a yield of 0.87%. PulteGroup’s payout ratio is 5.98%.

PulteGroup announced that its Board of Directors has approved a stock buyback program on Thursday, January 30th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the construction company to buy up to 6.2% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, VP Brien P. O’meara sold 3,500 shares of the firm’s stock in a transaction that occurred on Thursday, February 13th. The shares were sold at an average price of $106.40, for a total value of $372,400.00. Following the completion of the transaction, the vice president now owns 11,372 shares of the company’s stock, valued at approximately $1,209,980.80. This trade represents a 23.53 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Todd N. Sheldon sold 15,191 shares of PulteGroup stock in a transaction on Thursday, February 13th. The shares were sold at an average price of $106.50, for a total value of $1,617,841.50. Following the transaction, the executive vice president now owns 74,758 shares in the company, valued at $7,961,727. This represents a 16.89 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 21,191 shares of company stock worth $2,256,367 over the last ninety days. Company insiders own 0.76% of the company’s stock.

Hedge Funds Weigh In On PulteGroup

Large investors have recently made changes to their positions in the business. Hager Investment Management Services LLC purchased a new position in PulteGroup during the fourth quarter valued at approximately $29,000. Fortitude Family Office LLC boosted its stake in shares of PulteGroup by 74.1% during the 4th quarter. Fortitude Family Office LLC now owns 322 shares of the construction company’s stock valued at $35,000 after buying an additional 137 shares during the period. Ameriflex Group Inc. acquired a new stake in shares of PulteGroup during the 4th quarter valued at $37,000. TD Waterhouse Canada Inc. grew its holdings in shares of PulteGroup by 43.0% during the 4th quarter. TD Waterhouse Canada Inc. now owns 349 shares of the construction company’s stock valued at $38,000 after acquiring an additional 105 shares in the last quarter. Finally, R Squared Ltd acquired a new position in shares of PulteGroup in the fourth quarter worth $39,000. Institutional investors and hedge funds own 89.90% of the company’s stock.

PulteGroup Company Profile

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.