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

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

Analyst Ratings Changes

A number of research analysts have recently commented on the stock. UBS Group upped their price target on shares of PulteGroup from $148.00 to $151.00 and gave the stock a “buy” rating in a report on Friday, January 31st. Wedbush reaffirmed an “outperform” rating and set a $135.00 target price on shares of PulteGroup in a research report on Friday, January 31st. Oppenheimer lowered their price target on PulteGroup from $165.00 to $150.00 and set an “outperform” rating for the company in a report on Friday, January 31st. Barclays reduced their price objective on PulteGroup from $125.00 to $117.00 and set an “equal weight” rating on the stock in a report on Friday, January 31st. Finally, Evercore ISI lowered their target price on PulteGroup from $198.00 to $195.00 and set an “outperform” rating for the company in a report on Wednesday, October 23rd. One analyst has rated the stock with a sell rating, six have issued a hold rating and eleven have assigned a buy rating to the company. According to MarketBeat.com, PulteGroup presently has a consensus rating of “Moderate Buy” and a consensus target price of $140.86.

PulteGroup Price Performance

Shares of PHM opened at $111.33 on Thursday. The company has a 50 day moving average of $116.64 and a two-hundred day moving average of $127.25. The company has a market cap of $22.83 billion, a price-to-earnings ratio of 7.57, a price-to-earnings-growth ratio of 0.49 and a beta of 1.68. The company has a quick ratio of 0.73, a current ratio of 0.86 and a debt-to-equity ratio of 0.13. PulteGroup has a twelve month low of $100.24 and a twelve month high of $149.47.

PulteGroup (NYSE:PHM) last posted its quarterly earnings data on Thursday, January 30th. The construction company reported $3.50 earnings per share (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%. As a group, analysts predict that PulteGroup will post 13.34 earnings per share for the current fiscal year.

PulteGroup announced that its board has authorized a share 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 reacquire up to 6.2% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

PulteGroup Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 2nd. Investors of record on Tuesday, March 18th will be issued a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a dividend yield of 0.79%. PulteGroup’s dividend payout ratio (DPR) is 5.98%.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in PHM. Fortitude Family Office LLC lifted its holdings in shares of PulteGroup by 115.1% in the 3rd quarter. Fortitude Family Office LLC now owns 185 shares of the construction company’s stock valued at $27,000 after buying an additional 99 shares during the period. Transcendent Capital Group LLC purchased a new position in PulteGroup in the third quarter valued at $29,000. Hager Investment Management Services LLC purchased a new position in shares of PulteGroup in the 4th quarter valued at about $29,000. R Squared Ltd acquired a new position in shares of PulteGroup during the 4th quarter worth approximately $39,000. Finally, JNBA Financial Advisors acquired a new position in PulteGroup during the third quarter worth $43,000. Hedge funds and other 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.