PulteGroup (PHM) Shares Down 5.4% on Insider Selling

PulteGroup (NYSE:PHM) shares were down 5.4% on Tuesday following insider selling activity. The company traded as low as $29.20 and last traded at $29.30. Approximately 7,043,804 shares traded hands during mid-day trading, an increase of 44% from the average daily volume of 4,886,917 shares. The stock had previously closed at $30.96.

Specifically, Director Cheryl W. Grise sold 14,000 shares of the business’s stock in a transaction on Wednesday, May 2nd. The shares were sold at an average price of $30.74, for a total transaction of $430,360.00. Following the completion of the transaction, the director now owns 15,200 shares of the company’s stock, valued at approximately $467,248. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Harmon D. Smith sold 51,716 shares of the company’s stock in a transaction dated Friday, May 11th. The shares were sold at an average price of $31.40, for a total transaction of $1,623,882.40. Following the transaction, the chief operating officer now directly owns 256,823 shares of the company’s stock, valued at approximately $8,064,242.20. The disclosure for this sale can be found here. In the last three months, insiders have sold 75,438 shares of company stock valued at $2,347,542. Company insiders own 0.86% of the company’s stock.

A number of brokerages have recently commented on PHM. Credit Suisse Group reaffirmed an “outperform” rating and set a $38.00 price objective (up previously from $32.00) on shares of PulteGroup in a research report on Monday, January 22nd. They noted that the move was a valuation call. Mizuho raised shares of PulteGroup from a “neutral” rating to a “buy” rating in a research report on Thursday, January 18th. UBS upped their price objective on shares of PulteGroup from $38.00 to $41.00 and gave the company a “buy” rating in a research report on Wednesday, January 17th. B. Riley reaffirmed a “hold” rating and set a $36.00 price objective on shares of PulteGroup in a research report on Wednesday, January 31st. Finally, Zacks Investment Research lowered shares of PulteGroup from a “buy” rating to a “hold” rating in a research report on Friday, February 2nd. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $35.21.

The company has a market cap of $8.94 billion, a price-to-earnings ratio of 13.38, a PEG ratio of 0.53 and a beta of 1.03.

PulteGroup (NYSE:PHM) last posted its earnings results on Tuesday, April 24th. The construction company reported $0.59 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.44 by $0.15. The business had revenue of $1.97 billion for the quarter, compared to analysts’ expectations of $1.84 billion. PulteGroup had a net margin of 5.91% and a return on equity of 17.48%. The firm’s revenue for the quarter was up 20.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.31 earnings per share. equities research analysts expect that PulteGroup will post 3.31 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 5th. Investors of record on Thursday, June 7th will be paid a $0.09 dividend. The ex-dividend date is Wednesday, June 6th. This represents a $0.36 dividend on an annualized basis and a yield of 1.23%. PulteGroup’s payout ratio is currently 16.44%.

PulteGroup announced that its board has authorized a share buyback plan on Tuesday, January 30th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the construction company to buy shares of its stock through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Hedge funds and other institutional investors have recently bought and sold shares of the stock. LMR Partners LLP bought a new stake in PulteGroup in the fourth quarter valued at about $1,597,000. BlackRock Inc. increased its stake in PulteGroup by 3.0% in the fourth quarter. BlackRock Inc. now owns 22,912,891 shares of the construction company’s stock valued at $761,852,000 after acquiring an additional 658,662 shares during the period. HM Payson & Co. bought a new stake in PulteGroup during the fourth quarter worth about $237,000. Zurcher Kantonalbank Zurich Cantonalbank grew its stake in PulteGroup by 2.7% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 66,053 shares of the construction company’s stock worth $2,196,000 after buying an additional 1,760 shares during the last quarter. Finally, Contravisory Investment Management Inc. bought a new stake in PulteGroup during the fourth quarter worth about $304,000. 87.50% of the stock is currently owned by institutional investors and hedge funds.

About PulteGroup

PulteGroup, Inc, through its subsidiaries, primarily engages in the homebuilding business in the United States. The company is involved in the acquisition and development of land primarily for residential purposes; and the construction of housing on such land. It offers various home designs, including single-family detached, townhouses, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods names.

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