PulteGroup (NYSE:PHM) Hits New 12-Month Low – Here’s Why

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

Analyst Ratings Changes

A number of equities research analysts recently issued reports on PHM shares. Citigroup decreased their price objective on shares of PulteGroup from $146.00 to $119.00 and set a “neutral” rating for the company in a report on Monday, January 6th. Wells Fargo & Company decreased their price target on PulteGroup from $165.00 to $140.00 and set an “overweight” rating for the company in a research note on Tuesday, December 17th. Seaport Res Ptn downgraded PulteGroup from a “hold” rating to a “strong sell” rating in a research note on Monday, January 27th. Bank of America reduced their target price on PulteGroup from $135.00 to $134.00 and set a “buy” rating for the company in a report on Monday, January 27th. Finally, Barclays lowered their price target on PulteGroup from $125.00 to $117.00 and set an “equal weight” rating on the stock in a report on Friday, January 31st. One research analyst has rated the stock with a sell rating, six have issued a hold rating and eleven have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $140.86.

PulteGroup Stock Performance

The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.13. The firm has a 50-day moving average of $110.37 and a 200 day moving average of $125.14. The stock has a market capitalization of $21.55 billion, a P/E ratio of 7.24, a PEG ratio of 0.29 and a beta of 1.68.

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

PulteGroup Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Tuesday, March 18th will be issued a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 0.83%. The ex-dividend date of this dividend is Tuesday, March 18th. PulteGroup’s payout ratio is 5.98%.

PulteGroup announced that its board has authorized a stock repurchase plan on Thursday, January 30th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the construction company to purchase up to 6.2% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Insider Transactions at PulteGroup

In other PulteGroup news, VP Brien P. O’meara sold 3,500 shares of the stock in a transaction on 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 transaction, the vice president now directly owns 11,372 shares in the company, valued at $1,209,980.80. This represents a 23.53 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 directly owns 74,758 shares of the company’s stock, valued at approximately $7,961,727. The trade was a 16.89 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 21,191 shares of company stock valued at $2,256,367. Corporate insiders own 0.75% of the company’s stock.

Institutional Trading of PulteGroup

Several large investors have recently added to or reduced their stakes in the company. Franklin Resources Inc. boosted its holdings in shares of PulteGroup by 6.1% in the 4th quarter. Franklin Resources Inc. now owns 11,937,866 shares of the construction company’s stock worth $1,300,034,000 after acquiring an additional 683,592 shares in the last quarter. FMR LLC boosted its stake in PulteGroup by 102.3% in the third quarter. FMR LLC now owns 9,040,828 shares of the construction company’s stock worth $1,297,630,000 after purchasing an additional 4,571,757 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of PulteGroup by 1.3% during the fourth quarter. Geode Capital Management LLC now owns 5,120,878 shares of the construction company’s stock worth $556,465,000 after purchasing an additional 64,947 shares during the last quarter. Norges Bank acquired a new stake in shares of PulteGroup in the fourth quarter valued at $427,562,000. Finally, Northern Trust Corp raised its holdings in shares of PulteGroup by 14.9% in the fourth quarter. Northern Trust Corp now owns 2,425,941 shares of the construction company’s stock valued at $264,185,000 after buying an additional 315,148 shares during the last quarter. 89.90% of the stock is owned by institutional investors.

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.