PulteGroup Sees Unusually High Options Volume (NYSE:PHM)

PulteGroup, Inc. (NYSE:PHM) saw some unusual options trading on Wednesday. Investors acquired 9,941 call options on the company. This is an increase of 1,498% compared to the typical daily volume of 622 call options.

PulteGroup Price Performance

PHM opened at $105.80 on Friday. 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 firm has a market cap of $21.42 billion, a PE ratio of 7.19, a P/E/G ratio of 0.29 and a beta of 1.68. PulteGroup has a 1 year low of $101.13 and a 1 year high of $149.47. The stock has a 50-day moving average price of $111.47 and a 200-day moving average price of $125.63.

PulteGroup (NYSE:PHM) last announced its quarterly earnings results 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%. Sell-side analysts predict that PulteGroup will post 12.32 earnings per share for the current fiscal year.

PulteGroup declared that its board has authorized a stock buyback program on Thursday, January 30th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the construction company to purchase up to 6.2% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are 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 paid a dividend of $0.22 per share. The ex-dividend date of this dividend is Tuesday, March 18th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.83%. PulteGroup’s dividend payout ratio is currently 5.98%.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. Barclays lowered their price target on shares of PulteGroup from $125.00 to $117.00 and set an “equal weight” rating for the company in a report on Friday, January 31st. Oppenheimer lowered their price objective on shares of PulteGroup from $165.00 to $150.00 and set an “outperform” rating for the company in a research note on Friday, January 31st. Seaport Res Ptn lowered shares of PulteGroup from a “hold” rating to a “strong sell” rating in a report on Monday, January 27th. UBS Group boosted their price target on PulteGroup from $148.00 to $151.00 and gave the company a “buy” rating in a report on Friday, January 31st. Finally, The Goldman Sachs Group dropped their price objective on PulteGroup from $140.00 to $124.00 and set a “neutral” rating for the company in a report on Tuesday, January 14th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and eleven have assigned a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $140.86.

Insider Activity at PulteGroup

In other news, Director Brian P. Anderson sold 2,500 shares of PulteGroup stock in a transaction dated Monday, February 10th. The stock was sold at an average price of $106.45, for a total value of $266,125.00. Following the transaction, the director now owns 56,617 shares in the company, valued at approximately $6,026,879.65. The trade was a 4.23 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Todd N. Sheldon sold 15,191 shares of the business’s stock in a transaction dated Thursday, February 13th. The shares were 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 of the company’s stock, valued at approximately $7,961,727. This trade represents a 16.89 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 21,191 shares of company stock valued at $2,256,367. Corporate insiders own 0.83% of the company’s stock.

Institutional Investors Weigh In On PulteGroup

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