PulteGroup Target of Unusually Large Options Trading (NYSE:PHM)

PulteGroup, Inc. (NYSE:PHM) was the target of unusually large options trading activity on Wednesday. Investors acquired 9,941 call options on the stock. This represents an increase of 1,498% compared to the typical daily volume of 622 call options.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on PHM. StockNews.com upgraded shares of PulteGroup from a “hold” rating to a “buy” rating in a report on Wednesday, April 24th. Wedbush restated a “neutral” rating and issued a $85.00 price target on shares of PulteGroup in a report on Wednesday, January 31st. Royal Bank of Canada raised their price target on shares of PulteGroup from $106.00 to $113.00 and gave the company a “sector perform” rating in a report on Wednesday, April 24th. Raymond James restated an “outperform” rating and issued a $135.00 price target (up previously from $120.00) on shares of PulteGroup in a report on Thursday, April 25th. Finally, Barclays increased their price objective on shares of PulteGroup from $126.00 to $136.00 and gave the company an “overweight” rating in a research report on Thursday, April 4th. Five equities research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $111.73.

PulteGroup Stock Performance

PulteGroup stock traded down $1.90 during mid-day trading on Thursday, reaching $120.17. The company’s stock had a trading volume of 1,117,302 shares, compared to its average volume of 1,790,423. The firm has a market cap of $25.28 billion, a price-to-earnings ratio of 9.62, a PEG ratio of 0.52 and a beta of 1.56. The business has a 50 day moving average price of $113.63 and a 200-day moving average price of $103.59. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.18. PulteGroup has a twelve month low of $65.16 and a twelve month high of $122.72.

PulteGroup (NYSE:PHM) last released its quarterly earnings data on Tuesday, April 23rd. The construction company reported $2.87 EPS for the quarter, topping analysts’ consensus estimates of $2.36 by $0.51. The firm had revenue of $3.95 billion during the quarter, compared to the consensus estimate of $3.59 billion. PulteGroup had a net margin of 16.63% and a return on equity of 25.81%. Sell-side analysts predict that PulteGroup will post 12.64 EPS for the current fiscal year.

PulteGroup Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 2nd. Shareholders of record on Tuesday, June 18th will be issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 0.67%. The ex-dividend date is Friday, June 14th. PulteGroup’s dividend payout ratio is presently 6.41%.

PulteGroup declared that its board has approved a share repurchase program on Tuesday, January 30th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the construction company to reacquire up to 6.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On PulteGroup

A number of hedge funds have recently added to or reduced their stakes in PHM. E Fund Management Hong Kong Co. Ltd. bought a new stake in PulteGroup in the first quarter valued at $26,000. Benjamin Edwards Inc. bought a new stake in shares of PulteGroup during the first quarter valued at about $26,000. Annis Gardner Whiting Capital Advisors LLC bought a new stake in shares of PulteGroup during the third quarter valued at about $36,000. Rakuten Securities Inc. bought a new stake in shares of PulteGroup during the fourth quarter valued at about $37,000. Finally, Lindbrook Capital LLC raised its stake in shares of PulteGroup by 335.6% during the fourth quarter. Lindbrook Capital LLC now owns 379 shares of the construction company’s stock valued at $39,000 after purchasing an additional 292 shares in the last quarter. Institutional investors and hedge funds own 89.90% of the company’s stock.

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.