Royal Bank Of Canada Has Lowered Expectations for PulteGroup (NYSE:PHM) Stock Price

Key Points

• Royal Bank of Canada cut its PulteGroup price target from $116 to $111 while maintaining a “sector perform” rating, implying 1.42% downside from the reported $112.60 share price.
• Analyst sentiment remains generally positive, with PulteGroup carrying a consensus “Moderate Buy” rating and an average price target of $138.67, despite several recent target reductions.
• PulteGroup shares rose 3.0% to $112.60, while the company’s latest quarterly results exceeded expectations on both earnings and revenue; institutional investors own approximately 89.9% of its stock.

PulteGroup (NYSE:PHM - Get Free Report) had its target price lowered by investment analysts at Royal Bank Of Canada from $116.00 to $111.00 in a report released on Thursday, Benzinga reports. The brokerage presently has a "sector perform" rating on the construction company's stock. Royal Bank Of Canada's target price points to a potential downside of 1.42% from the stock's current price.

Several other research firms have also weighed in on PHM. Wolfe Research set a $129.00 target price on PulteGroup and gave the stock an "outperform" rating in a report on Monday, August 24th. Benchmark upgraded PulteGroup to a "strong-buy" rating in a report on Thursday, September 3rd. Piper Sandler lowered PulteGroup to a "hold" rating and set a $145.00 price target on the stock. in a research report on Thursday, October 8th. Barclays dropped their price target on PulteGroup from $124.00 to $110.00 and set an "equal weight" rating on the stock in a research report on Tuesday, October 6th. Finally, Melius Research initiated coverage on PulteGroup in a report on Tuesday, October 6th. They set a "hold" rating and a $132.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, PulteGroup currently has an average rating of "Moderate Buy" and a consensus target price of $138.67.

PulteGroup Trading Up 3.0%

Shares of NYSE PHM traded up $3.25 during midday trading on Thursday, reaching $112.60. 556,376 shares of the stock were exchanged, compared to its average volume of 1,781,759. The business has a 50-day simple moving average of $122.00 and a two-hundred day simple moving average of $122.81. The company has a market capitalization of $21.11 billion, a price-to-earnings ratio of 11.49, a P/E/G ratio of 1.54 and a beta of 1.16. PulteGroup has a 12 month low of $107.15 and a 12 month high of $144.49. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.78 and a quick ratio of 0.78.

PulteGroup (NYSE:PHM - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The construction company reported $2.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.36 by $0.12. PulteGroup had a net margin of 11.62% and a return on equity of 15.21%. The company had revenue of $3.98 billion during the quarter, compared to analyst estimates of $3.94 billion. During the same quarter in the previous year, the business earned $3.03 EPS. The firm's revenue was down 9.6% on a year-over-year basis. As a group, equities research analysts expect that PulteGroup will post 10.08 EPS for the current year.

Hedge Funds Weigh In On PulteGroup

A number of large investors have recently added to or reduced their stakes in PHM. State Street Corp increased its holdings in shares of PulteGroup by 3.2% in the second quarter. State Street Corp now owns 9,174,111 shares of the construction company's stock valued at $1,261,092,000 after purchasing an additional 288,054 shares during the last quarter. First Trust Advisors LP boosted its stake in PulteGroup by 7.8% in the 1st quarter. First Trust Advisors LP now owns 4,314,501 shares of the construction company's stock valued at $507,428,000 after purchasing an additional 313,581 shares during the period. Dimensional Fund Advisors LP boosted its stake in PulteGroup by 0.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,146,857 shares of the construction company's stock valued at $370,008,000 after purchasing an additional 26,790 shares during the period. Bank of America Corp DE grew its holdings in PulteGroup by 4.3% in the 1st quarter. Bank of America Corp DE now owns 1,963,175 shares of the construction company's stock valued at $230,889,000 after buying an additional 80,352 shares in the last quarter. Finally, Amundi grew its holdings in PulteGroup by 28.6% in the 1st quarter. Amundi now owns 1,438,508 shares of the construction company's stock valued at $169,183,000 after buying an additional 319,617 shares in the last quarter. Institutional investors own 89.90% of the company's stock.

About PulteGroup

PulteGroup, Inc is a homebuilding company headquartered in Atlanta, Georgia. Founded in 1950 by William J. Pulte, the company develops, builds and sells homes for a range of buyers, including first-time, move-up and active-adult customers.

The company operates through several well-known brands, including Pulte Homes, Centex, Del Webb and DiVosta. Its offerings include single-family homes and related residential developments, with designs and communities tailored to different lifestyles, price points and stages of homeownership.

PulteGroup serves homebuyers across numerous markets in the United States.

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