PulteGroup, Inc. (NYSE:PHM) Sees Large Growth in Short Interest

PulteGroup, Inc. (NYSE:PHM) was the target of a significant increase in short interest in the month of January. As of January 31st, there was short interest totalling 5,590,000 shares, an increase of 15.3% from the January 15th total of 4,850,000 shares. Approximately 2.8% of the company’s shares are sold short. Based on an average trading volume of 2,030,000 shares, the days-to-cover ratio is presently 2.8 days.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Citigroup cut their target price on shares of PulteGroup from $146.00 to $119.00 and set a “neutral” rating on the stock in a research report on Monday, January 6th. Wedbush reissued an “outperform” rating and set a $135.00 price objective on shares of PulteGroup in a report on Friday, January 31st. Barclays lowered their target price on PulteGroup from $125.00 to $117.00 and set an “equal weight” rating for the company in a report on Friday, January 31st. Bank of America cut their price target on PulteGroup from $135.00 to $134.00 and set a “buy” rating on the stock in a report on Monday, January 27th. Finally, UBS Group raised their price objective on PulteGroup from $148.00 to $151.00 and gave the company a “buy” rating in a research report on Friday, January 31st. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $140.86.

PulteGroup Trading Up 0.7 %

Shares of PulteGroup stock opened at $107.45 on Monday. PulteGroup has a 12-month low of $100.24 and a 12-month high of $149.47. The firm’s 50 day simple moving average is $112.63 and its two-hundred day simple moving average is $126.12. The company has a current ratio of 0.86, a quick ratio of 0.73 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $22.04 billion, a price-to-earnings ratio of 7.30, a PEG ratio of 0.29 and a beta of 1.68.

PulteGroup (NYSE:PHM) last released its earnings results 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 return on equity of 24.43% and a net margin of 17.18%. Analysts predict that PulteGroup will post 12.43 EPS for the current year.

PulteGroup Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Tuesday, March 18th will be issued a $0.22 dividend. This represents a $0.88 annualized dividend and a yield of 0.82%. The ex-dividend date of this dividend is Tuesday, March 18th. PulteGroup’s payout ratio is 5.98%.

PulteGroup declared that its board has authorized a share buyback plan on Thursday, January 30th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the construction company to buy up to 6.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Insider Transactions at PulteGroup

In other PulteGroup news, EVP Todd N. Sheldon sold 15,191 shares of the company’s stock in a transaction on Thursday, February 13th. The stock was sold at an average price of $106.50, for a total value of $1,617,841.50. Following the completion of the sale, the executive vice president now directly owns 74,758 shares in the company, valued at approximately $7,961,727. This represents a 16.89 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Brien P. O’meara sold 3,500 shares of the firm’s stock in a transaction on Thursday, February 13th. The shares were sold at an average price of $106.40, for a total value of $372,400.00. Following the transaction, the vice president now owns 11,372 shares in the company, valued at approximately $1,209,980.80. This represents a 23.53 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 21,191 shares of company stock valued at $2,256,367. 0.83% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PulteGroup

Several institutional investors and hedge funds have recently modified their holdings of the stock. Fortitude Family Office LLC raised its position 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 acquiring an additional 99 shares in the last quarter. Transcendent Capital Group LLC purchased a new position in shares of PulteGroup during the 3rd quarter valued at approximately $29,000. Hager Investment Management Services LLC purchased a new position in shares of PulteGroup during the 4th quarter valued at approximately $29,000. TD Waterhouse Canada Inc. boosted its holdings in PulteGroup by 43.0% during the fourth quarter. TD Waterhouse Canada Inc. now owns 349 shares of the construction company’s stock worth $38,000 after buying an additional 105 shares in the last quarter. Finally, R Squared Ltd acquired a new stake in PulteGroup during the fourth quarter valued at $39,000. 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.