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

PulteGroup, Inc. (NYSE:PHM) was the recipient of some unusual options trading activity on Wednesday. Traders purchased 9,941 call options on the stock. This represents an increase of 1,498% compared to the average daily volume of 622 call options.

PulteGroup Stock Up 1.2 %

PulteGroup stock opened at $104.32 on Thursday. PulteGroup has a 1-year low of $99.58 and a 1-year high of $149.47. The stock has a market cap of $21.12 billion, a PE ratio of 7.09, a P/E/G ratio of 0.29 and a beta of 1.71. 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 stock’s fifty day moving average is $106.79 and its two-hundred day moving average is $120.64.

PulteGroup (NYSE:PHM) last announced its quarterly earnings results on Thursday, January 30th. The construction company reported $3.50 EPS for the quarter, beating the consensus estimate of $3.28 by $0.22. PulteGroup had a net margin of 17.18% and a return on equity of 24.43%. On average, sell-side analysts expect that PulteGroup will post 12.32 EPS for the current fiscal year.

PulteGroup declared that its Board of Directors has initiated a stock repurchase program on Thursday, January 30th that permits the company to buyback $1.50 billion in outstanding 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 board believes its stock is undervalued.

PulteGroup Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 2nd. Investors of record on Tuesday, March 18th were given a $0.22 dividend. The ex-dividend date was Tuesday, March 18th. This represents a $0.88 dividend on an annualized basis and a yield of 0.84%. PulteGroup’s dividend payout ratio (DPR) is presently 5.98%.

Insider Buying and Selling

In related news, EVP Todd N. Sheldon sold 15,191 shares of PulteGroup stock in a transaction dated 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 transaction, the executive vice president now owns 74,758 shares in the company, valued at $7,961,727. The trade was a 16.89 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Brian P. Anderson sold 2,500 shares of the company’s 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 completion of the transaction, the director now directly owns 56,617 shares of the company’s stock, valued at $6,026,879.65. The trade was a 4.23 % 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. Corporate insiders own 0.76% of the company’s stock.

Institutional Trading of PulteGroup

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Hager Investment Management Services LLC purchased a new position in PulteGroup during the 4th quarter worth approximately $29,000. Fortitude Family Office LLC grew its position in shares of PulteGroup by 74.1% during the fourth quarter. Fortitude Family Office LLC now owns 322 shares of the construction company’s stock worth $35,000 after acquiring an additional 137 shares during the last quarter. Ameriflex Group Inc. acquired a new position in shares of PulteGroup in the 4th quarter valued at $37,000. TD Waterhouse Canada Inc. raised its position in PulteGroup by 43.0% in the 4th quarter. TD Waterhouse Canada Inc. now owns 349 shares of the construction company’s stock valued at $38,000 after purchasing an additional 105 shares during the last quarter. Finally, R Squared Ltd purchased a new position in PulteGroup during the 4th quarter worth $39,000. Institutional investors and hedge funds own 89.90% of the company’s stock.

Analysts Set New Price Targets

PHM has been the subject of several research analyst reports. The Goldman Sachs Group reduced their target price on PulteGroup from $140.00 to $124.00 and set a “neutral” rating for the company in a research note on Tuesday, January 14th. JPMorgan Chase & Co. reduced their price objective on shares of PulteGroup from $162.00 to $155.00 and set an “overweight” rating for the company in a research report on Friday, December 13th. Oppenheimer dropped their target price on shares of PulteGroup from $165.00 to $150.00 and set an “outperform” rating on the stock in a research report on Friday, January 31st. Bank of America cut their target price on shares of PulteGroup from $135.00 to $134.00 and set a “buy” rating for the company in a research note on Monday, January 27th. Finally, Wedbush reaffirmed an “outperform” rating and issued a $135.00 price target on shares of PulteGroup in a research note on Friday, January 31st. Seven equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. According to data from MarketBeat, PulteGroup currently has an average rating of “Moderate Buy” and a consensus target price of $140.86.

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.