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 report sent to investors on Wednesday morning.

A number of other research analysts also recently weighed in on the company. Raymond James lifted their price target on PulteGroup from $100.00 to $120.00 and gave the company an outperform rating in a report on Monday, February 5th. Barclays lifted their price target on PulteGroup from $126.00 to $136.00 and gave the company an overweight rating in a report on Thursday, April 4th. Citigroup lifted their price target on PulteGroup from $116.00 to $127.00 and gave the company a neutral rating in a report on Friday, April 5th. Wedbush reiterated a neutral rating and set a $85.00 price target on shares of PulteGroup in a report on Wednesday, January 31st. Finally, Royal Bank of Canada boosted their target price on PulteGroup from $106.00 to $113.00 and gave the company a sector perform rating in a research note on Wednesday. Five equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of Moderate Buy and an average price target of $111.73.

PulteGroup Stock Performance

Shares of NYSE PHM opened at $113.74 on Wednesday. The company has a quick ratio of 0.86, a current ratio of 0.85 and a debt-to-equity ratio of 0.18. The stock has a market capitalization of $23.92 billion, a price-to-earnings ratio of 9.11, a PEG ratio of 0.54 and a beta of 1.56. The stock’s fifty day simple moving average is $111.28 and its 200 day simple moving average is $99.42. PulteGroup has a 52-week low of $64.70 and a 52-week high of $121.07.

PulteGroup (NYSE:PHM) last issued its quarterly earnings results on Tuesday, January 30th. The construction company reported $3.28 earnings per share 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 business had revenue of $4.29 billion for the quarter, compared to the consensus estimate of $4.47 billion. During the same quarter in the previous year, the company posted $3.63 earnings per share. PulteGroup’s revenue for the quarter was down 15.5% compared to the same quarter last year. As a group, sell-side analysts forecast that PulteGroup will post 11.96 earnings per share for the current fiscal year.

PulteGroup announced that its Board of Directors has authorized a share repurchase program on Tuesday, January 30th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the construction company to buy up to 6.5% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

PulteGroup Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, April 2nd. Shareholders of record on Friday, March 15th were given 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 dividend yield of 0.70%. PulteGroup’s dividend payout ratio is currently 6.41%.

Insiders Place Their Bets

In other PulteGroup news, VP Brien P. O’meara sold 2,000 shares of the business’s stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $103.09, for a total value of $206,180.00. Following the completion of the sale, the vice president now owns 15,389 shares of the company’s stock, valued at $1,586,452.01. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.83% of the company’s stock.

Hedge Funds Weigh In On PulteGroup

Several large investors have recently made changes to their positions in PHM. E Fund Management Hong Kong Co. Ltd. acquired a new position in shares of PulteGroup during the 1st quarter worth about $26,000. Arlington Trust Co LLC acquired a new position in PulteGroup in the 3rd quarter valued at approximately $33,000. Baystate Wealth Management LLC raised its holdings in PulteGroup by 186.5% in the 3rd quarter. Baystate Wealth Management LLC now owns 490 shares of the construction company’s stock valued at $36,000 after acquiring an additional 319 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC bought a new stake in shares of PulteGroup in the 3rd quarter valued at approximately $36,000. Finally, Rakuten Securities Inc. bought a new stake in shares of PulteGroup in the 4th quarter valued at approximately $37,000. 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.