Clough Capital Partners L P Buys 25,870 Shares of PulteGroup, Inc. $PHM

Key Points

• Clough Capital Partners increased its stake in PulteGroup by 10% in the fourth quarter, buying 25,870 additional shares and bringing its total to 284,834 shares worth about $33.4 million.
• PulteGroup reported mixed quarterly results, with EPS of $1.79 narrowly missing estimates while revenue of $3.41 billion slightly beat expectations; revenue was still down 12.4% from a year earlier.
• The company announced a $1.50 billion share buyback and a quarterly dividend of $0.26 per share, while analysts currently view the stock as a Moderate Buy with a consensus target price of $140.71.

Clough Capital Partners L P grew its stake in PulteGroup, Inc. (NYSE:PHM - Free Report) by 10.0% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 284,834 shares of the construction company's stock after purchasing an additional 25,870 shares during the quarter. PulteGroup comprises approximately 3.0% of Clough Capital Partners L P's holdings, making the stock its 8th largest holding. Clough Capital Partners L P owned 0.15% of PulteGroup worth $33,400,000 as of its most recent SEC filing.

Other large investors also recently made changes to their positions in the company. Rachor Investment Advisory Services LLC acquired a new position in shares of PulteGroup in the 4th quarter valued at $31,000. DV Equities LLC acquired a new position in shares of PulteGroup in the 4th quarter valued at $32,000. Lloyd Advisory Services LLC. acquired a new position in shares of PulteGroup in the 4th quarter valued at $33,000. High Point Wealth Management LLC bought a new stake in shares of PulteGroup in the 4th quarter valued at $38,000. Finally, Beacon Financial Strategies CORP bought a new stake in shares of PulteGroup in the 4th quarter valued at $40,000. Institutional investors and hedge funds own 89.90% of the company's stock.

PulteGroup Price Performance

Shares of NYSE PHM opened at $121.74 on Thursday. The stock has a market capitalization of $23.19 billion, a price-to-earnings ratio of 11.77, a PEG ratio of 1.58 and a beta of 1.20. The business has a 50-day moving average of $119.90 and a 200-day moving average of $124.13. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.94 and a quick ratio of 0.94. PulteGroup, Inc. has a fifty-two week low of $98.27 and a fifty-two week high of $144.49.

PulteGroup (NYSE:PHM - Get Free Report) last posted its quarterly 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). PulteGroup had a return on equity of 16.41% and a net margin of 12.14%.The business had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.40 billion. During the same quarter in the previous year, the business posted $2.57 EPS. The company's revenue for the quarter was down 12.4% on a year-over-year basis. As a group, sell-side analysts predict that PulteGroup, Inc. will post 10 earnings per share for the current fiscal year.

PulteGroup Dividend Announcement

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

PulteGroup declared that its board has approved a share repurchase program on Thursday, April 23rd that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the construction company to reacquire 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 stock is undervalued.

Analysts Set New Price Targets

PHM has been the subject of a number of recent analyst reports. Seaport Research Partners restated a "sell" rating and issued a $100.00 price objective (down from $155.00) on shares of PulteGroup in a research report on Tuesday, April 7th. Bank of America lowered their price objective on shares of PulteGroup from $145.00 to $140.00 and set a "buy" rating for the company in a research report on Monday, April 20th. Barclays lowered their price objective on shares of PulteGroup from $115.00 to $112.00 and set an "equal weight" rating for the company in a research report on Wednesday, April 8th. Citigroup upped their price objective on shares of PulteGroup from $136.00 to $138.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. Finally, The Goldman Sachs Group upped their price objective on shares of PulteGroup from $133.00 to $142.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. Ten investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $140.71.

Insider Transactions at PulteGroup

In related news, COO Matthew William Koart sold 7,457 shares of PulteGroup stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $120.00, for a total transaction of $894,840.00. Following the completion of the transaction, the chief operating officer owned 28,100 shares in the company, valued at approximately $3,372,000. This trade represents a 20.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Lila Snyder sold 3,339 shares of PulteGroup stock in a transaction dated 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 owned 3,540 shares of the company's stock, valued at $414,817.20. The trade was 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 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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