PulteGroup, Inc. (PHM) Shares Gap Up After Analyst Upgrade

PulteGroup, Inc. (NYSE:PHM) shares gapped up before the market opened on Thursday after Zacks Investment Research upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $29.06, but opened at $29.23. Zacks Investment Research now has a $33.00 price target on the stock. PulteGroup shares last traded at $29.67, with a volume of 2,531,072 shares.

According to Zacks, “PulteGroup’s third-quarter 2017 earnings beat the Zacks Consensus Estimate by 1.7%, while revenues missed the same. Earnings in the quarter increased a solid 40% from the year-ago level. The upside was supported by higher demand despite disruptions caused by hurricanes Harvey and Irma, courtesy of positive U.S. housing market dynamics as well as an improving economy and jobs market. Also, historically low interest rates and growing demand among first-time buyers bode well. Revenues also increased 9.6% year over year owing to a rise in the number of homes delivered. The company’s prudent land investments are expected to translate into higher community count and volume growth. Home sale revenues rose 9.3% on increased home closings and average selling price, while Land sale revenues of $27.3 million rose from $13.2 million a year ago. Home closings increased across all operating regions of the company, barring Texas and West region.”

Several other research analysts have also weighed in on the stock. MKM Partners restated a “neutral” rating on shares of PulteGroup in a research note on Tuesday, September 5th. Susquehanna Bancshares Inc lowered shares of PulteGroup from a “positive” rating to a “neutral” rating and set a $26.00 price objective on the stock. in a research note on Wednesday, July 26th. Mizuho lowered shares of PulteGroup from a “neutral” rating to an “underperform” rating and set a $22.00 price objective on the stock. in a research note on Monday, July 10th. Barclays PLC lowered shares of PulteGroup from an “overweight” rating to an “equal weight” rating and set a $24.00 price objective on the stock. in a research note on Tuesday, July 11th. They noted that the move was a valuation call. Finally, Citigroup Inc. boosted their price objective on shares of PulteGroup from $23.00 to $26.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 26th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of “Hold” and an average price target of $28.67.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Principal Financial Group Inc. grew its position in shares of PulteGroup by 2.7% during the 1st quarter. Principal Financial Group Inc. now owns 467,882 shares of the construction company’s stock worth $11,018,000 after purchasing an additional 12,321 shares in the last quarter. PNC Financial Services Group Inc. grew its position in shares of PulteGroup by 7.5% during the 1st quarter. PNC Financial Services Group Inc. now owns 16,025 shares of the construction company’s stock worth $377,000 after purchasing an additional 1,118 shares in the last quarter. Thrivent Financial For Lutherans grew its position in shares of PulteGroup by 3.2% during the 1st quarter. Thrivent Financial For Lutherans now owns 10,492 shares of the construction company’s stock worth $247,000 after purchasing an additional 330 shares in the last quarter. AQR Capital Management LLC grew its position in shares of PulteGroup by 155.2% during the 1st quarter. AQR Capital Management LLC now owns 1,029,478 shares of the construction company’s stock worth $24,244,000 after purchasing an additional 626,019 shares in the last quarter. Finally, Paloma Partners Management Co grew its position in shares of PulteGroup by 212.0% during the 1st quarter. Paloma Partners Management Co now owns 57,373 shares of the construction company’s stock worth $1,351,000 after purchasing an additional 38,983 shares in the last quarter. Institutional investors and hedge funds own 85.34% of the company’s stock.

The firm has a market cap of $9.07 billion, a PE ratio of 16.64 and a beta of 1.06. The stock has a 50-day moving average price of $26.86 and a 200 day moving average price of $24.77.

PulteGroup (NYSE:PHM) last announced its quarterly earnings data on Tuesday, October 24th. The construction company reported $0.60 EPS for the quarter, topping the consensus estimate of $0.59 by $0.01. The business had revenue of $2.13 billion for the quarter, compared to analyst estimates of $2.30 billion. PulteGroup had a net margin of 7.77% and a return on equity of 14.38%. The company’s revenue for the quarter was up 9.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.43 earnings per share. Equities research analysts expect that PulteGroup, Inc. will post $2.07 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, October 3rd. Shareholders of record on Tuesday, September 19th were given a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 1.20%. The ex-dividend date of this dividend was Monday, September 18th. PulteGroup’s dividend payout ratio is 17.91%.

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PulteGroup Company Profile

PulteGroup, Inc is a homebuilder in the United States. The Company’s segments include Homebuilding and Financial Services. Its Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land.

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