BNP Paribas Financial Markets Purchases 88,733 Shares of PulteGroup, Inc. $PHM

Key Points

• BNP Paribas Financial Markets increased its PulteGroup stake by 14.3% in the fourth quarter, buying 88,733 additional shares and bringing its total holding to 707,771 shares worth about $83 million.
• PulteGroup reported Q1 earnings of $1.79 per share, slightly below expectations, while revenue of $3.41 billion came in just above estimates but was down 12.4% from a year earlier.
• The company authorized a $1.5 billion share buyback and declared a quarterly dividend of $0.26 per share, even as analysts maintain a Moderate Buy outlook with a consensus target price of $140.71.

BNP Paribas Financial Markets lifted its position in shares of PulteGroup, Inc. (NYSE:PHM - Free Report) by 14.3% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 707,771 shares of the construction company's stock after buying an additional 88,733 shares during the quarter. BNP Paribas Financial Markets owned approximately 0.37% of PulteGroup worth $82,993,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Rachor Investment Advisory Services LLC purchased a new position in PulteGroup in the fourth quarter valued at about $31,000. Lloyd Advisory Services LLC. purchased a new position in PulteGroup in the fourth quarter valued at about $33,000. High Point Wealth Management LLC purchased a new position in PulteGroup in the fourth quarter valued at about $38,000. Beacon Financial Strategies CORP purchased a new position in PulteGroup in the fourth quarter valued at about $40,000. Finally, Elyxium Wealth LLC purchased a new position in PulteGroup in the fourth quarter valued at about $41,000. Institutional investors own 89.90% of the company's stock.

PulteGroup Stock Down 0.3%

Shares of PHM stock opened at $117.77 on Tuesday. The stock has a 50 day moving average of $119.03 and a 200 day moving average of $124.03. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.14. The stock has a market cap of $22.43 billion, a P/E ratio of 11.39, a P/E/G ratio of 1.50 and a beta of 1.20. PulteGroup, Inc. has a twelve month low of $95.20 and a twelve month high of $144.49.

PulteGroup (NYSE:PHM - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The construction company reported $1.79 earnings per share for the quarter, missing the consensus estimate of $1.80 by ($0.01). The company had revenue of $3.41 billion for the quarter, compared to analysts' expectations of $3.40 billion. PulteGroup had a net margin of 12.14% and a return on equity of 16.41%. The firm's revenue was down 12.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.57 earnings per share. As a group, sell-side analysts expect that PulteGroup, Inc. will post 10 EPS for the current year.

PulteGroup announced that its Board of Directors has approved a stock buyback program on Thursday, April 23rd that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the construction company to purchase up to 6.1% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board believes its shares are undervalued.

PulteGroup Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Tuesday, June 16th will be given a dividend of $0.26 per share. This represents a $1.04 annualized dividend and a yield of 0.9%. The ex-dividend date is Tuesday, June 16th. PulteGroup's dividend payout ratio (DPR) is currently 10.06%.

Insider Activity at PulteGroup

In related news, Director Lila Snyder sold 3,339 shares of PulteGroup stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $117.18, for a total transaction of $391,264.02. Following the completion of the transaction, the director directly owned 3,540 shares in the company, valued at approximately $414,817.20. This trade represents a 48.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Matthew William Koart sold 7,457 shares of the business's stock in a transaction that occurred on 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 of the company's stock, valued at $3,372,000. This trade represents a 20.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.75% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on PHM. UBS Group lifted their target price on PulteGroup from $159.00 to $162.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Bank of America lowered their price target on PulteGroup from $145.00 to $140.00 and set a "buy" rating for the company in a report on Monday, April 20th. Citigroup raised their price target on PulteGroup from $136.00 to $138.00 and gave the stock a "neutral" rating in a report on Friday, April 24th. Wells Fargo & Company raised their price target on PulteGroup from $132.00 to $140.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. Finally, The Goldman Sachs Group raised their price target on PulteGroup from $133.00 to $142.00 and gave the stock a "neutral" rating in a report on Friday, April 24th. Ten equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $140.71.

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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