Barclays Cuts PulteGroup (NYSE:PHM) Price Target to $112.00

Key Points

• Barclays cut its price target on PulteGroup from $115 to $112 and maintained an "equal weight" rating, implying roughly a 6.55% downside from the stock's then-current price.
• Despite that cut, the analyst consensus is a Moderate Buy with an average price target of $142.50, supported by a majority of Buy/Hold recommendations (1 Strong Buy, 9 Buy, 6 Hold, 1 Sell).
• Insiders have been net sellers recently — executives sold significant stakes and insiders disposed of about 149,952 shares worth ~$20.16 million, leaving insider ownership at approximately 0.75%.

PulteGroup (NYSE:PHM - Get Free Report) had its price target cut by investment analysts at Barclays from $115.00 to $112.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the construction company's stock. Barclays's price target suggests a potential downside of 6.55% from the stock's current price.

Other equities research analysts have also issued research reports about the stock. Seaport Research Partners reaffirmed a "sell" rating and issued a $100.00 target price (down from $155.00) on shares of PulteGroup in a report on Tuesday. Oppenheimer reaffirmed an "outperform" rating and issued a $149.00 target price (up from $140.00) on shares of PulteGroup in a report on Friday, January 30th. Zacks Research lowered shares of PulteGroup from a "hold" rating to a "strong sell" rating in a report on Monday, January 26th. Citizens Jmp began coverage on shares of PulteGroup in a report on Wednesday, January 7th. They issued a "market outperform" rating and a $145.00 target price on the stock. Finally, The Goldman Sachs Group upped their target price on shares of PulteGroup from $144.00 to $150.00 and gave the stock a "neutral" rating in a report on Tuesday, February 17th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, PulteGroup presently has an average rating of "Moderate Buy" and an average price target of $142.50.

PulteGroup Price Performance

Shares of PHM traded up $4.75 during trading hours on Wednesday, hitting $119.84. The stock had a trading volume of 795,710 shares, compared to its average volume of 1,856,084. The company's fifty day moving average is $127.76 and its two-hundred day moving average is $125.33. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.01 and a quick ratio of 1.01. PulteGroup has a 52 week low of $88.07 and a 52 week high of $144.49. The stock has a market capitalization of $22.96 billion, a price-to-earnings ratio of 10.79, a P/E/G ratio of 1.36 and a beta of 1.33.

Insider Activity

In other PulteGroup news, EVP Kevin A. Henry sold 5,173 shares of the stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $141.03, for a total transaction of $729,548.19. Following the sale, the executive vice president owned 14,673 shares of the company's stock, valued at $2,069,333.19. This represents a 26.07% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Todd N. Sheldon sold 14,220 shares of the stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $135.01, for a total transaction of $1,919,842.20. Following the sale, the executive vice president directly owned 69,753 shares in the company, valued at approximately $9,417,352.53. This represents a 16.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 149,952 shares of company stock worth $20,162,165. 0.75% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Rachor Investment Advisory Services LLC acquired a new position in PulteGroup during the 4th quarter valued at about $31,000. DV Equities LLC acquired a new position in PulteGroup during the 4th quarter valued at about $32,000. Lloyd Advisory Services LLC. acquired a new position in PulteGroup during the 4th quarter valued at about $33,000. Rexford Capital Inc. acquired a new position in PulteGroup during the 2nd quarter valued at about $35,000. Finally, Private Wealth Management Group LLC lifted its position in PulteGroup by 281.7% during the 3rd quarter. Private Wealth Management Group LLC now owns 271 shares of the construction company's stock valued at $36,000 after purchasing an additional 200 shares during the period. 89.90% of the stock is currently owned by institutional investors and hedge funds.

PulteGroup Company Profile

PulteGroup, Inc NYSE: PHM is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.

PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.

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