Investors Buy Large Volume of Call Options on PulteGroup (NYSE:PHM)

PulteGroup, Inc. (NYSE:PHM) was the recipient of unusually large options trading on Wednesday. Traders purchased 9,941 call options on the company. This represents an increase of 1,498% compared to the average volume of 622 call options.

PulteGroup Price Performance

PHM opened at $110.41 on Friday. PulteGroup has a 1 year low of $100.24 and a 1 year high of $149.47. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.73 and a quick ratio of 0.73. The company has a market capitalization of $22.64 billion, a price-to-earnings ratio of 8.14, a P/E/G ratio of 0.48 and a beta of 1.67. The firm’s fifty day moving average price is $122.45 and its two-hundred day moving average price is $126.72.

PulteGroup (NYSE:PHM) last released its quarterly earnings results on Tuesday, October 22nd. The construction company reported $3.35 earnings per share for the quarter, topping the consensus estimate of $3.10 by $0.25. PulteGroup had a net margin of 16.64% and a return on equity of 25.30%. The business had revenue of $4.48 billion for the quarter, compared to analysts’ expectations of $4.27 billion. During the same period in the previous year, the company earned $2.90 earnings per share. The firm’s revenue for the quarter was up 11.8% compared to the same quarter last year. As a group, analysts anticipate that PulteGroup will post 12.94 earnings per share for the current fiscal year.

PulteGroup Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 3rd. Stockholders of record on Tuesday, December 17th were issued a $0.22 dividend. The ex-dividend date was Tuesday, December 17th. This is a positive change from PulteGroup’s previous quarterly dividend of $0.20. This represents a $0.88 annualized dividend and a dividend yield of 0.80%. PulteGroup’s dividend payout ratio is currently 6.49%.

Wall Street Analysts Forecast Growth

A number of research firms have commented on PHM. Bank of America raised their price target on shares of PulteGroup from $138.00 to $160.00 and gave the stock a “buy” rating in a report on Thursday, September 19th. Evercore ISI reduced their target price on PulteGroup from $198.00 to $195.00 and set an “outperform” rating for the company in a research note on Wednesday, October 23rd. Citigroup dropped their price target on PulteGroup from $146.00 to $119.00 and set a “neutral” rating on the stock in a research note on Monday. Barclays reissued an “equal weight” rating and issued a $140.00 price objective (down previously from $150.00) on shares of PulteGroup in a research note on Wednesday, December 11th. Finally, StockNews.com downgraded PulteGroup from a “buy” rating to a “hold” rating in a report on Wednesday, December 11th. Six analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $143.86.

Institutional Trading of PulteGroup

Institutional investors and hedge funds have recently modified their holdings of the business. Logan Capital Management Inc. raised its position in PulteGroup by 67.7% in the third quarter. Logan Capital Management Inc. now owns 14,797 shares of the construction company’s stock worth $2,124,000 after acquiring an additional 5,976 shares during the period. Sanctuary Advisors LLC raised its holdings in shares of PulteGroup by 38.1% in the 3rd quarter. Sanctuary Advisors LLC now owns 121,299 shares of the construction company’s stock worth $17,410,000 after purchasing an additional 33,472 shares during the period. Trustmark National Bank Trust Department lifted its stake in PulteGroup by 39.8% in the third quarter. Trustmark National Bank Trust Department now owns 39,589 shares of the construction company’s stock valued at $5,682,000 after purchasing an additional 11,269 shares during the last quarter. Systematic Financial Management LP lifted its stake in PulteGroup by 3.9% in the third quarter. Systematic Financial Management LP now owns 130,257 shares of the construction company’s stock valued at $18,696,000 after purchasing an additional 4,840 shares during the last quarter. Finally, New Millennium Group LLC grew its holdings in PulteGroup by 10,625.8% during the third quarter. New Millennium Group LLC now owns 9,546 shares of the construction company’s stock valued at $1,370,000 after purchasing an additional 9,457 shares during the period. 89.90% of the stock is owned by hedge funds and other 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.