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

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

Analysts Set New Price Targets

Several equities research analysts have commented on PHM shares. BTIG Research upped their price target on PulteGroup from $139.00 to $156.00 and gave the stock a “buy” rating in a research note on Wednesday, October 23rd. Barclays dropped their price target on PulteGroup from $125.00 to $117.00 and set an “equal weight” rating for the company in a research note on Friday, January 31st. Wedbush restated an “outperform” rating and set a $135.00 price target on shares of PulteGroup in a research note on Friday, January 31st. Seaport Res Ptn lowered PulteGroup from a “hold” rating to a “strong sell” rating in a research note on Monday, January 27th. Finally, Evercore ISI dropped their price target on PulteGroup from $198.00 to $195.00 and set an “outperform” rating for the company in a research note on Wednesday, October 23rd. One investment analyst has rated the stock with a sell rating, six have given a hold rating and eleven have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $140.86.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of PHM. Fortitude Family Office LLC raised its stake in PulteGroup by 115.1% during the third quarter. Fortitude Family Office LLC now owns 185 shares of the construction company’s stock valued at $27,000 after buying an additional 99 shares in the last quarter. Transcendent Capital Group LLC acquired a new stake in PulteGroup during the third quarter valued at approximately $29,000. Hager Investment Management Services LLC acquired a new stake in PulteGroup during the fourth quarter valued at approximately $29,000. JNBA Financial Advisors acquired a new stake in PulteGroup during the third quarter valued at approximately $43,000. Finally, Thurston Springer Miller Herd & Titak Inc. raised its stake in PulteGroup by 1,059.3% during the third quarter. Thurston Springer Miller Herd & Titak Inc. now owns 313 shares of the construction company’s stock valued at $45,000 after buying an additional 286 shares in the last quarter. Hedge funds and other institutional investors own 89.90% of the company’s stock.

PulteGroup Price Performance

Shares of NYSE PHM opened at $109.89 on Friday. PulteGroup has a 1-year low of $100.24 and a 1-year high of $149.47. The business has a 50-day moving average of $116.14 and a 200-day moving average of $127.14. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.86 and a quick ratio of 0.73. The company has a market capitalization of $22.54 billion, a price-to-earnings ratio of 7.47, a PEG ratio of 0.49 and a beta of 1.68.

PulteGroup (NYSE:PHM) last issued its quarterly earnings results 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 return on equity of 24.43% and a net margin of 17.18%. On average, equities analysts anticipate that PulteGroup will post 13.34 EPS for the current fiscal year.

PulteGroup Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 2nd. Investors of record on Tuesday, March 18th will be issued a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a yield of 0.80%. The ex-dividend date is Tuesday, March 18th. PulteGroup’s dividend payout ratio is currently 5.98%.

PulteGroup declared that its Board of Directors has approved a share repurchase plan on Thursday, January 30th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the construction company to reacquire up to 6.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its stock is undervalued.

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.