Bank of Nova Scotia Cuts Stock Holdings in PulteGroup, Inc. $PHM

Key Points

• Bank of Nova Scotia cut its PulteGroup stake by 65.7% in the first quarter, selling 95,225 shares and retaining 49,671 shares valued at approximately $5.84 million. Institutional investors collectively own 89.9% of PHM.
• PulteGroup exceeded quarterly earnings expectations, reporting $2.48 EPS versus the $2.36 consensus and $3.98 billion in revenue, though revenue declined 9.6% year over year.
• The company authorized a $1.5 billion share-buyback program, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $143.14.

Bank of Nova Scotia lowered its holdings in PulteGroup, Inc. (NYSE:PHM - Free Report) by 65.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 49,671 shares of the construction company's stock after selling 95,225 shares during the quarter. Bank of Nova Scotia's holdings in PulteGroup were worth $5,842,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Cedar Mountain Advisors LLC boosted its stake in shares of PulteGroup by 1,650.0% during the 1st quarter. Cedar Mountain Advisors LLC now owns 210 shares of the construction company's stock worth $25,000 after acquiring an additional 198 shares during the last quarter. NFSG Corp bought a new position in PulteGroup in the 1st quarter worth $29,000. Rachor Investment Advisory Services LLC bought a new position in PulteGroup in the 4th quarter worth $31,000. DV Equities LLC purchased a new position in PulteGroup during the fourth quarter valued at $32,000. Finally, HHM Wealth Advisors LLC lifted its position in PulteGroup by 158.5% during the first quarter. HHM Wealth Advisors LLC now owns 274 shares of the construction company's stock valued at $32,000 after purchasing an additional 168 shares in the last quarter. 89.90% of the stock is owned by institutional investors.

Insider Buying and Selling at PulteGroup

In other PulteGroup news, COO Matthew William Koart sold 7,457 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $120.00, for a total value of $894,840.00. Following the completion of the sale, the chief operating officer owned 28,100 shares in the company, valued at approximately $3,372,000. This represents a 20.97% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lila Snyder sold 3,339 shares of the business's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $117.18, for a total value of $391,264.02. Following the transaction, the director directly owned 3,540 shares in the company, valued at $414,817.20. This trade represents a 48.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.75% of the company's stock.

PulteGroup Price Performance

Shares of PHM stock opened at $130.44 on Tuesday. The stock's 50-day moving average is $124.49 and its 200 day moving average is $125.35. PulteGroup, Inc. has a 1-year low of $108.49 and a 1-year 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. The company has a market cap of $24.45 billion, a P/E ratio of 13.32, a PEG ratio of 1.60 and a beta of 1.18.

PulteGroup (NYSE:PHM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The construction company reported $2.48 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.36 by $0.12. PulteGroup had a net margin of 11.62% and a return on equity of 15.21%. The business had revenue of $3.98 billion during the quarter, compared to analysts' expectations of $3.94 billion. During the same quarter last year, the company posted $3.03 earnings per share. The business's quarterly revenue was down 9.6% on a year-over-year basis. Research analysts predict that PulteGroup, Inc. will post 10.08 earnings per share for the current fiscal year.

PulteGroup declared that its board has authorized a share buyback program on Thursday, April 23rd that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the construction company to buy up to 6.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its stock is undervalued.

PulteGroup Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Tuesday, June 16th were issued a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, June 16th. PulteGroup's dividend payout ratio (DPR) is presently 10.62%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on PHM shares. Barclays increased their price target on PulteGroup from $123.00 to $124.00 and gave the stock an "equal weight" rating in a research note on Thursday. Seaport Research Partners reiterated a "sell" rating and set a $100.00 target price (down from $155.00) on shares of PulteGroup in a research report on Tuesday, April 7th. Oppenheimer reissued an "outperform" rating on shares of PulteGroup in a research note on Tuesday, May 26th. Zacks Research raised PulteGroup from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Finally, UBS Group restated a "buy" rating and issued a $166.00 price target on shares of PulteGroup in a research note on Thursday. Ten equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, PulteGroup currently has a consensus rating of "Moderate Buy" and an average target price of $143.14.

About PulteGroup

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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