Investors Purchase High Volume of Call Options on PulteGroup (NYSE:PHM)

PulteGroup, Inc. (NYSE:PHM) was the recipient of some unusual options trading on Wednesday. Stock investors bought 9,941 call options on the company. This is an increase of approximately 1,498% compared to the average daily volume of 622 call options.

Insider Activity at PulteGroup

In related news, EVP Todd N. Sheldon sold 15,191 shares of the company’s 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 sale, the executive vice president now directly owns 74,758 shares of the company’s stock, valued at $7,961,727. This represents a 16.89 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Brian P. Anderson sold 2,500 shares of the firm’s stock in a transaction on Monday, February 10th. The stock was sold at an average price of $106.45, for a total transaction of $266,125.00. Following the transaction, the director now directly owns 56,617 shares of the company’s stock, valued at approximately $6,026,879.65. This represents a 4.23 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 21,191 shares of company stock valued at $2,256,367. Insiders own 0.76% of the company’s stock.

Institutional Investors Weigh In On PulteGroup

Institutional investors and hedge funds have recently bought and sold shares of the business. Hager Investment Management Services LLC bought a new stake in shares of PulteGroup in the 4th quarter worth approximately $29,000. Fortitude Family Office LLC increased its holdings in shares of PulteGroup by 74.1% in the fourth quarter. Fortitude Family Office LLC now owns 322 shares of the construction company’s stock valued at $35,000 after buying an additional 137 shares in the last quarter. Ameriflex Group Inc. bought a new stake in shares of PulteGroup during the 4th quarter worth $37,000. TD Waterhouse Canada Inc. boosted its position in shares of PulteGroup by 43.0% in the 4th quarter. TD Waterhouse Canada Inc. now owns 349 shares of the construction company’s stock valued at $38,000 after purchasing an additional 105 shares during the period. Finally, R Squared Ltd purchased a new stake in shares of PulteGroup in the 4th quarter valued at approximately $39,000. 89.90% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. UBS Group boosted their price objective on PulteGroup from $148.00 to $151.00 and gave the company a “buy” rating in a report on Friday, January 31st. The Goldman Sachs Group dropped their price target on PulteGroup from $140.00 to $124.00 and set a “neutral” rating on the stock in a research report on Tuesday, January 14th. Wells Fargo & Company decreased their price objective on shares of PulteGroup from $140.00 to $120.00 and set an “overweight” rating for the company in a report on Monday. Oppenheimer dropped their target price on shares of PulteGroup from $165.00 to $150.00 and set an “outperform” rating on the stock in a report on Friday, January 31st. Finally, Seaport Res Ptn upgraded shares of PulteGroup from a “strong sell” rating to a “hold” rating in a research report on Thursday, March 6th. Seven research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $138.21.

PulteGroup Stock Performance

Shares of PHM opened at $92.94 on Thursday. The firm has a market capitalization of $18.82 billion, a PE ratio of 6.32, a P/E/G ratio of 0.29 and a beta of 1.44. 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 price of $102.51 and a 200 day moving average price of $117.08. PulteGroup has a 52-week low of $88.07 and a 52-week high of $149.47.

PulteGroup (NYSE:PHM) last posted 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 net margin of 17.18% and a return on equity of 24.43%. On average, sell-side analysts anticipate that PulteGroup will post 12.32 earnings per share for the current fiscal year.

PulteGroup declared that its board has initiated a share repurchase program on Thursday, January 30th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the construction company to repurchase up to 6.2% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

PulteGroup Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 2nd. Stockholders of record on Tuesday, March 18th were issued a $0.22 dividend. The ex-dividend date was Tuesday, March 18th. This represents a $0.88 annualized dividend and a dividend yield of 0.95%. PulteGroup’s dividend payout ratio (DPR) is 5.98%.

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.