PulteGroup (NYSE:PHM) Sets New 12-Month Low – Time to Sell?

PulteGroup, Inc. (NYSE:PHM)’s stock price reached a new 52-week low during trading on Monday . The company traded as low as $101.03 and last traded at $101.47, with a volume of 87581 shares. The stock had previously closed at $103.11.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Barclays decreased their target price on PulteGroup from $125.00 to $117.00 and set an “equal weight” rating for the company in a research report on Friday, January 31st. StockNews.com downgraded shares of PulteGroup from a “buy” rating to a “hold” rating in a report on Wednesday, December 11th. Seaport Res Ptn cut shares of PulteGroup from a “hold” rating to a “strong sell” rating in a report on Monday, January 27th. Bank of America decreased their price target on shares of PulteGroup from $135.00 to $134.00 and set a “buy” rating for the company in a report on Monday, January 27th. Finally, Oppenheimer lowered their price objective on shares of PulteGroup from $165.00 to $150.00 and set an “outperform” rating for the company in a research report on Friday, January 31st. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $140.86.

PulteGroup Stock Performance

The company has a fifty day moving average price of $110.87 and a two-hundred day moving average price of $125.40. The firm has a market cap of $20.64 billion, a price-to-earnings ratio of 6.93, a price-to-earnings-growth ratio of 0.29 and a beta of 1.68. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.86 and a quick ratio of 0.86.

PulteGroup (NYSE:PHM) last announced its quarterly earnings data on Thursday, January 30th. The construction company reported $3.50 EPS for the quarter, beating analysts’ consensus estimates of $3.28 by $0.22. PulteGroup had a return on equity of 24.43% and a net margin of 17.18%. As a group, equities research analysts expect that PulteGroup, Inc. will post 12.32 EPS for the current year.

PulteGroup Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Tuesday, March 18th will be given a dividend of $0.22 per share. The ex-dividend date is Tuesday, March 18th. This represents a $0.88 dividend on an annualized basis and a yield of 0.86%. PulteGroup’s payout ratio is presently 5.98%.

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

Insider Activity

In other news, VP Brien P. O’meara sold 3,500 shares of the company’s stock in a transaction dated Thursday, February 13th. The stock was sold at an average price of $106.40, for a total transaction of $372,400.00. Following the completion of the sale, the vice president now owns 11,372 shares in the company, valued at approximately $1,209,980.80. This represents a 23.53 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Brian P. Anderson sold 2,500 shares of the firm’s stock in a transaction that occurred on Monday, February 10th. The shares were sold at an average price of $106.45, for a total value of $266,125.00. Following the completion of the transaction, the director now directly owns 56,617 shares in the company, valued at $6,026,879.65. The trade was a 4.23 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 21,191 shares of company stock worth $2,256,367 in the last ninety days. Corporate insiders own 0.83% of the company’s stock.

Institutional Investors Weigh In On PulteGroup

Several hedge funds have recently modified their holdings of the business. FMR LLC lifted its stake in shares of PulteGroup by 102.3% in the third quarter. FMR LLC now owns 9,040,828 shares of the construction company’s stock valued at $1,297,630,000 after buying an additional 4,571,757 shares during the period. Norges Bank bought a new stake in shares of PulteGroup in the 4th quarter worth approximately $427,562,000. Amundi grew its holdings in shares of PulteGroup by 77.9% during the 4th quarter. Amundi now owns 1,636,562 shares of the construction company’s stock worth $180,775,000 after purchasing an additional 716,716 shares in the last quarter. Franklin Resources Inc. increased its position in shares of PulteGroup by 6.1% during the fourth quarter. Franklin Resources Inc. now owns 11,937,866 shares of the construction company’s stock valued at $1,300,034,000 after purchasing an additional 683,592 shares during the period. Finally, Man Group plc lifted its position in PulteGroup by 136.8% in the fourth quarter. Man Group plc now owns 988,963 shares of the construction company’s stock worth $107,698,000 after purchasing an additional 571,251 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.