PulteGroup Inc. (NYSE:PHM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Pulte delivered better-than-expected results in both the first and second quarters of 2016. Pulte's large-scale business along with its geographic/product diversity, consistently improving profitability and a commitment toward higher returns while pursuing a more balanced capital allocation approach are encouraging. Significantly, Pulte announced the next phase of its value-creation strategy at the call. Pulte will lower land spend and instead use the extra cash flow to drive greater overhead leverage and increase share buyback activity which should drive earnings growth. We believe that Pulte will do well in the second half backed by the steadily improving housing market, strong backlog position, focus on higher-return business and the recent Wieland acquisition. However, labor shortages and gross margin compression due to rising labor costs can keep the housing momentum in check in the second half. “
Several other analysts have also recently commented on PHM. Royal Bank Of Canada increased their price target on shares of PulteGroup from $23.00 to $26.00 and gave the company an “outperform” rating in a research note on Friday, July 22nd. Deutsche Bank AG reissued a “buy” rating and set a $27.00 price target on shares of PulteGroup in a research note on Thursday, September 15th. FBR & Co increased their price target on shares of PulteGroup from $20.00 to $24.00 and gave the company a “market perform” rating in a research note on Friday, July 22nd. MKM Partners reissued a “hold” rating on shares of PulteGroup in a research note on Wednesday, June 8th. Finally, RBC Capital Markets reissued an “outperform” rating and set a $26.00 price target (up from $23.00) on shares of PulteGroup in a research note on Sunday, July 24th. Four analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have given a buy rating to the company’s stock. PulteGroup currently has an average rating of “Hold” and a consensus price target of C$20.13.
PulteGroup (NYSE:PHM) opened at 20.14 on Tuesday. PulteGroup has a 12-month low of $14.61 and a 12-month high of $22.40. The firm has a 50 day moving average price of $20.68 and a 200 day moving average price of $19.51. The company has a market cap of $6.92 billion, a PE ratio of 13.26 and a beta of 1.59.
PulteGroup (NYSE:PHM) last issued its quarterly earnings data on Thursday, July 21st. The company reported $0.34 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.32 by $0.02. The firm had revenue of $1.80 billion for the quarter, compared to analysts’ expectations of $1.66 billion. PulteGroup had a net margin of 7.89% and a return on equity of 11.24%. The company’s quarterly revenue was up 40.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.28 earnings per share. On average, analysts anticipate that PulteGroup will post $1.61 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 4th. Investors of record on Tuesday, September 20th will be given a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 1.79%. The ex-dividend date is Friday, September 16th. PulteGroup’s dividend payout ratio (DPR) is currently 23.68%.
In related news, VP James L. Ossowski sold 11,655 shares of the firm’s stock in a transaction on Monday, July 25th. The shares were sold at an average price of C$25.75, for a total value of C$300,116.25. Following the completion of the transaction, the vice president now owns 51,880 shares of the company’s stock, valued at C$1,335,910. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, VP James L. Ossowski sold 10,000 shares of the firm’s stock in a transaction on Thursday, July 7th. The shares were sold at an average price of C$20.00, for a total transaction of C$200,000.00. Following the completion of the transaction, the vice president now directly owns 51,880 shares of the company’s stock, valued at approximately C$1,037,600. The disclosure for this sale can be found here. 1.83% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. IFP Advisors Inc increased its position in shares of PulteGroup by 69.4% in the first quarter. IFP Advisors Inc now owns 5,507 shares of the company’s stock worth $103,000 after buying an additional 2,257 shares during the period. First Quadrant L P CA purchased a new position in shares of PulteGroup during the second quarter worth approximately $109,000. Levin Capital Strategies L.P. purchased a new position in shares of PulteGroup during the second quarter worth approximately $195,000. Private Advisor Group LLC purchased a new position in shares of PulteGroup during the second quarter worth approximately $201,000. Finally, Chartist Inc. CA purchased a new position in shares of PulteGroup during the second quarter worth approximately $202,000. 89.08% of the stock is owned by institutional investors and hedge funds.
PulteGroup, Inc is a homebuilder operating in the United States. The Company, through Pulte Mortgage LLC, is engaged in mortgage banking operations and title operations. The Company’s subsidiaries are also engaged in the homebuilding business. The Company operates through Homebuilding and Financial Services segments.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for PulteGroup Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PulteGroup Inc. and related companies with MarketBeat.com's FREE daily email newsletter.