Evercore Issues Positive Forecast for PulteGroup (NYSE:PHM) Stock Price

Key Points

• Evercore raised its price target on PulteGroup to $151 (from $146) and kept an "outperform" rating, implying about a 16.85% upside from the prior close.
• PulteGroup's board authorized an additional $1.5 billion in share buybacks (bringing total authorization to $2.1 billion) to repurchase roughly 6.1% of shares, signaling management sees the stock as undervalued.
• The company reported Q1 EPS of $1.79 vs. $1.80 expected and revenue of $3.41 billion (slightly above estimates), but margins declined year‑over‑year due to higher sales incentives and lower selling prices, weighing on the stock.

PulteGroup (NYSE:PHM - Get Free Report) had its price target upped by research analysts at Evercore from $146.00 to $151.00 in a report issued on Friday, MarketBeat Ratings reports. The brokerage currently has an "outperform" rating on the construction company's stock. Evercore's price objective would suggest a potential upside of 16.85% from the stock's previous close.

PHM has been the subject of a number of other reports. Zacks Research upgraded PulteGroup from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. Wall Street Zen upgraded PulteGroup from a "sell" rating to a "hold" rating in a research report on Sunday, January 11th. Royal Bank Of Canada increased their target price on PulteGroup from $111.00 to $115.00 and gave the company a "sector perform" rating in a research report on Friday, January 30th. UBS Group reiterated a "buy" rating on shares of PulteGroup in a research report on Thursday, March 12th. Finally, The Goldman Sachs Group increased their target price on PulteGroup from $133.00 to $142.00 and gave the company a "neutral" rating in a research report on Friday. Eleven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $140.50.

PulteGroup Price Performance

Shares of NYSE:PHM traded down $1.42 during mid-day trading on Friday, reaching $129.22. The stock had a trading volume of 77,363 shares, compared to its average volume of 1,895,818. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.13. The company has a market cap of $24.76 billion, a P/E ratio of 11.62, a price-to-earnings-growth ratio of 1.65 and a beta of 1.33. PulteGroup has a 1 year low of $95.20 and a 1 year high of $144.49. The business's 50 day moving average price is $125.87 and its 200 day moving average price is $124.75.

PulteGroup (NYSE:PHM - Get Free Report) last posted its earnings results on Thursday, April 23rd. The construction company reported $1.79 EPS for the quarter, missing analysts' consensus estimates of $1.80 by ($0.01). The firm had revenue of $3.41 billion during the quarter, compared to analysts' expectations of $3.40 billion. PulteGroup had a return on equity of 18.00% and a net margin of 12.82%.PulteGroup's quarterly revenue was down 12.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.57 earnings per share. Research analysts expect that PulteGroup will post 10.07 EPS for the current fiscal year.

PulteGroup announced that its board has authorized a stock buyback plan on Thursday, April 23rd that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the construction company to reacquire up to 6.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

Insider Activity at PulteGroup

In related news, COO Matthew William Koart sold 15,309 shares of the stock in a transaction on Friday, February 6th. The stock was sold at an average price of $135.79, for a total transaction of $2,078,809.11. Following the sale, the chief operating officer owned 42,418 shares in the company, valued at approximately $5,759,940.22. This represents a 26.52% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Ryan Marshall sold 111,250 shares of the stock in a transaction on Thursday, February 5th. The shares were sold at an average price of $133.86, for a total value of $14,891,925.00. Following the sale, the insider owned 659,392 shares in the company, valued at $88,266,213.12. The trade was a 14.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 149,952 shares of company stock worth $20,162,165 in the last ninety days. Corporate insiders own 0.75% of the company's stock.

Institutional Trading of PulteGroup

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Franklin Resources Inc. raised its holdings in PulteGroup by 5.1% during the 4th quarter. Franklin Resources Inc. now owns 13,555,304 shares of the construction company's stock valued at $1,589,495,000 after buying an additional 655,033 shares during the period. Price T Rowe Associates Inc. MD raised its holdings in PulteGroup by 126.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,284,197 shares of the construction company's stock valued at $502,366,000 after buying an additional 2,392,580 shares during the period. First Trust Advisors LP raised its holdings in PulteGroup by 10.4% during the 4th quarter. First Trust Advisors LP now owns 4,000,920 shares of the construction company's stock valued at $469,148,000 after buying an additional 377,003 shares during the period. Norges Bank purchased a new stake in PulteGroup in the fourth quarter worth $466,653,000. Finally, Massachusetts Financial Services Co. MA purchased a new stake in PulteGroup in the third quarter worth $315,883,000. Hedge funds and other institutional investors own 89.90% of the company's stock.

PulteGroup News Summary

Here are the key news stories impacting PulteGroup this week:

• Positive Sentiment: Board ups buybacks by $1.5 billion (total authorization $2.1 billion), allowing repurchase of ~6.1% of shares — a strong capital‑return signal that can support the share price over time. Business Wire: Repurchase Announcement
• Neutral Sentiment: Revenue modestly beat consensus ($3.41B vs. $3.40B) and management pointed to steady orders/community growth, suggesting demand pockets remain even as the market slows. This mitigates some near‑term concerns but doesn’t erase margin pressure. Zacks: Revenue Beat, Orders
• Neutral Sentiment: Management commentary and the earnings call provide detail on incentives, pricing and inventory turns — useful for investors parsing whether margin compression is temporary or structural. Read the transcript for guidance color. Yahoo Finance: Q1 Earnings Call Transcript
• Negative Sentiment: Earnings missed by a hair (EPS $1.79 vs. $1.80 est) and adjusted profit and margins declined materially year‑over‑year (EPS $2.57 a year ago); Pulte cited higher sales incentives and lower selling prices that compressed margins — the main driver of today’s share weakness. Seeking Alpha: Q1 Miss & Pricing Pressure WSJ: Profit Falls on Incentives

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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