Traders Buy High Volume of Call Options on PulteGroup (NYSE:PHM)

PulteGroup, Inc. (NYSE:PHM) saw some unusual options trading activity on Wednesday. Stock traders purchased 9,941 call options on the stock. This represents an increase of approximately 1,498% compared to the typical volume of 622 call options.

PulteGroup Stock Up 3.2 %

Shares of NYSE PHM opened at $106.15 on Thursday. PulteGroup has a 1 year low of $100.54 and a 1 year high of $149.47. The firm’s 50 day moving average price is $109.56 and its 200 day moving average price is $124.32. The firm has a market cap of $21.49 billion, a P/E ratio of 7.22, a price-to-earnings-growth ratio of 0.29 and a beta of 1.71. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.86 and a current ratio of 0.86.

PulteGroup (NYSE:PHM) last announced its earnings results on Thursday, January 30th. The construction company reported $3.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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, sell-side analysts anticipate that PulteGroup will post 12.32 earnings per share for the current year.

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 given a dividend of $0.22 per share. The ex-dividend date is Tuesday, March 18th. This represents a $0.88 dividend on an annualized basis and a yield of 0.83%. PulteGroup’s dividend payout ratio (DPR) is currently 5.98%.

PulteGroup announced that its Board of Directors has initiated a share buyback 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 stock through open market purchases. Stock buyback programs are usually an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling at PulteGroup

In other news, Director Brian P. Anderson sold 2,500 shares of the company’s stock in a transaction dated Monday, February 10th. The shares were sold at an average price of $106.45, for a total value of $266,125.00. Following the completion of the sale, the director now directly owns 56,617 shares of the company’s stock, valued at approximately $6,026,879.65. This represents a 4.23 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Brien P. O’meara sold 3,500 shares of the stock in a transaction dated Thursday, February 13th. The stock was sold at an average price of $106.40, for a total transaction of $372,400.00. Following the transaction, the vice president now directly owns 11,372 shares of the company’s stock, valued at $1,209,980.80. This represents a 23.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 21,191 shares of company stock worth $2,256,367 over the last 90 days. Corporate insiders own 0.75% of the company’s stock.

Hedge Funds Weigh In On PulteGroup

Large investors have recently bought and sold shares of the stock. Logan Capital Management Inc. raised its stake in PulteGroup by 67.7% during the third quarter. Logan Capital Management Inc. now owns 14,797 shares of the construction company’s stock worth $2,124,000 after purchasing an additional 5,976 shares during the period. Sanctuary Advisors LLC raised its stake in PulteGroup by 38.1% during the third quarter. Sanctuary Advisors LLC now owns 121,299 shares of the construction company’s stock worth $17,410,000 after purchasing an additional 33,472 shares during the period. Trustmark National Bank Trust Department raised its stake in PulteGroup by 39.8% during the third quarter. Trustmark National Bank Trust Department now owns 39,589 shares of the construction company’s stock worth $5,682,000 after purchasing an additional 11,269 shares during the period. Systematic Financial Management LP raised its stake in PulteGroup by 3.9% during the third quarter. Systematic Financial Management LP now owns 130,257 shares of the construction company’s stock worth $18,696,000 after purchasing an additional 4,840 shares during the period. Finally, Nilsine Partners LLC raised its stake in PulteGroup by 929.2% during the fourth quarter. Nilsine Partners LLC now owns 20,574 shares of the construction company’s stock worth $2,240,000 after purchasing an additional 18,575 shares during the period. Hedge funds and other institutional investors own 89.90% of the company’s stock.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Seaport Res Ptn cut shares of PulteGroup from a “hold” rating to a “strong sell” rating in a report on Monday, January 27th. Bank of America dropped their target price on shares of PulteGroup from $135.00 to $134.00 and set a “buy” rating for the company in a report on Monday, January 27th. The Goldman Sachs Group dropped their target price on shares of PulteGroup from $140.00 to $124.00 and set a “neutral” rating for the company in a report on Tuesday, January 14th. StockNews.com cut shares of PulteGroup from a “buy” rating to a “hold” rating in a report on Wednesday, December 11th. Finally, Wedbush reaffirmed an “outperform” rating and issued a $135.00 target price on shares of PulteGroup in a report on Friday, January 31st. One analyst has rated the stock with a sell rating, six have issued a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $140.86.

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.