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

PulteGroup, Inc. (NYSE:PHM) saw unusually large options trading activity on Wednesday. Investors bought 9,941 call options on the stock. This represents an increase of approximately 1,498% compared to the average volume of 622 call options.

PulteGroup Price Performance

PulteGroup stock opened at $108.44 on Friday. The business has a 50 day simple moving average of $109.51 and a 200 day simple moving average of $124.21. The company has a debt-to-equity ratio of 0.13, a current ratio of 0.86 and a quick ratio of 0.86. The company has a market capitalization of $21.96 billion, a PE ratio of 7.37, a price-to-earnings-growth ratio of 0.29 and a beta of 1.71. PulteGroup has a one year low of $100.54 and a one year high of $149.47.

PulteGroup (NYSE:PHM) last issued its quarterly earnings data on Thursday, January 30th. The construction company reported $3.50 earnings per share (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, sell-side analysts forecast that PulteGroup will post 12.32 EPS for the current fiscal year.

PulteGroup announced that its board has authorized a stock buyback program on Thursday, January 30th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the construction company to reacquire up to 6.2% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.

PulteGroup Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 2nd. Shareholders of record on Tuesday, March 18th will be given a $0.22 dividend. The ex-dividend date is Tuesday, March 18th. This represents a $0.88 dividend on an annualized basis and a yield of 0.81%. PulteGroup’s dividend payout ratio (DPR) is presently 5.98%.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. The Goldman Sachs Group cut their target price on shares of PulteGroup from $140.00 to $124.00 and set a “neutral” rating for the company in a research report on Tuesday, January 14th. Wells Fargo & Company decreased their target price on PulteGroup from $165.00 to $140.00 and set an “overweight” rating for the company in a research note on Tuesday, December 17th. StockNews.com downgraded PulteGroup from a “buy” rating to a “hold” rating in a research report on Wednesday, December 11th. Oppenheimer reduced their price objective on PulteGroup from $165.00 to $150.00 and set an “outperform” rating for the company in a research report on Friday, January 31st. Finally, JPMorgan Chase & Co. dropped their target price on shares of PulteGroup from $162.00 to $155.00 and set an “overweight” rating on the stock in a research report on Friday, December 13th. One research analyst has rated the stock with a sell rating, six have given a hold rating and eleven have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $140.86.

Insider Transactions at PulteGroup

In other news, Director Brian P. Anderson sold 2,500 shares of the stock in a transaction dated 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 owns 56,617 shares of the company’s stock, valued at approximately $6,026,879.65. This represents a 4.23 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Brien P. O’meara sold 3,500 shares of the firm’s stock in a transaction that occurred 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 completion of the transaction, the vice president now directly owns 11,372 shares in the company, valued at $1,209,980.80. The trade was a 23.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 21,191 shares of company stock worth $2,256,367 in the last 90 days. 0.75% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. FMR LLC grew its position in PulteGroup by 102.3% during the 3rd quarter. FMR LLC now owns 9,040,828 shares of the construction company’s stock worth $1,297,630,000 after acquiring an additional 4,571,757 shares during the last quarter. Norges Bank acquired a new position in PulteGroup in the fourth quarter worth $427,562,000. Amundi grew its holdings in shares of PulteGroup by 77.9% during the fourth quarter. Amundi now owns 1,636,562 shares of the construction company’s stock worth $180,775,000 after purchasing an additional 716,716 shares during the last quarter. Franklin Resources Inc. increased its stake in shares of PulteGroup by 6.1% in the fourth quarter. Franklin Resources Inc. now owns 11,937,866 shares of the construction company’s stock valued at $1,300,034,000 after buying an additional 683,592 shares in the last quarter. Finally, Man Group plc raised its holdings in shares of PulteGroup by 136.8% in the fourth quarter. Man Group plc now owns 988,963 shares of the construction company’s stock valued at $107,698,000 after buying an additional 571,251 shares during the last quarter. Institutional investors own 89.90% of the company’s stock.

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.