Convergence Investment Partners LLC Takes Position in PulteGroup, Inc. $PHM

Key Points

• Convergence Investment Partners acquired 10,374 PulteGroup shares worth approximately $1.42 million in the second quarter. Institutional investors collectively own about 89.9% of PHM.
• PulteGroup exceeded quarterly expectations with EPS of $2.48 versus the $2.36 consensus and revenue of $3.98 billion, although revenue declined 9.6% year over year.
• The company authorized a $1.5 billion share-repurchase program, while analysts maintain a “Moderate Buy” consensus with an average price target of $143.14.

Convergence Investment Partners LLC acquired a new position in PulteGroup, Inc. (NYSE:PHM - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 10,374 shares of the construction company's stock, valued at approximately $1,423,000.

Other large investors have also added to or reduced their stakes in the company. Norges Bank acquired a new stake in PulteGroup in the 4th quarter valued at $466,653,000. Price T Rowe Associates Inc. MD increased its position in shares of 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 worth $502,366,000 after purchasing an additional 2,392,580 shares during the last quarter. Public Sector Pension Investment Board grew its stake in shares of PulteGroup by 5,485.0% in the fourth quarter. Public Sector Pension Investment Board now owns 930,622 shares of the construction company's stock valued at $109,125,000 after buying an additional 913,959 shares in the last quarter. Franklin Resources Inc. raised its position in PulteGroup by 5.1% during the fourth quarter. Franklin Resources Inc. now owns 13,555,304 shares of the construction company's stock worth $1,589,495,000 after acquiring an additional 655,033 shares in the last quarter. Finally, Milford Funds Ltd. bought a new position in shares of PulteGroup in the 4th quarter valued at about $68,379,000. Institutional investors and hedge funds own 89.90% of the company's stock.

PulteGroup Trading Down 0.3%

Shares of PHM stock opened at $130.13 on Friday. The firm has a 50 day moving average price of $128.33 and a two-hundred day moving average price of $125.58. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $24.39 billion, a PE ratio of 13.29, a price-to-earnings-growth ratio of 1.62 and a beta of 1.19. PulteGroup, Inc. has a 12-month low of $108.49 and a 12-month high of $144.49.

PulteGroup (NYSE:PHM - Get Free Report) last issued its quarterly earnings data 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. The company had revenue of $3.98 billion during the quarter, compared to analysts' expectations of $3.94 billion. PulteGroup had a return on equity of 15.21% and a net margin of 11.62%.The business's revenue was down 9.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.03 earnings per share. As a group, analysts predict that PulteGroup, Inc. will post 10.12 earnings per share for the current year.

PulteGroup announced that its Board of Directors has initiated a share buyback plan on Thursday, April 23rd that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the construction company to reacquire up to 6.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Key PulteGroup News

Here are the key news stories impacting PulteGroup this week:

• Positive Sentiment: Zacks Research raised its PulteGroup EPS forecast for Q4 2026 to $3.04 from $2.87 and lifted its FY2026 forecast to $9.91 from $9.70. It also made a small increase to its Q1 2027 estimate, now at $1.96 versus $1.95 previously. These revisions suggest some confidence in the company’s near-term earnings trajectory.
• Neutral Sentiment: Wall Street’s outlook for PHM is reviewed in a recent analyst-focused article, highlighting the importance of consensus ratings and price targets to the stock’s direction. Are Wall Street analysts predicting PulteGroup stock will climb or sink?
• Neutral Sentiment: PulteGroup entered a repurchase agreement to help finance mortgage originations. The pact may support lending capacity and home sales, although it also exposes the company’s mortgage business to financing and liquidity considerations. PulteGroup enters repurchase pact to finance mortgage originations
• Negative Sentiment: Zacks lowered several estimates, including Q3 2026 EPS to $2.60 from $2.67, Q2 2027 EPS to $2.71 from $2.81, Q3 2027 EPS to $3.00 from $3.06, FY2027 EPS to $11.04 from $11.07, Q1 2028 EPS to $2.40 from $2.46, and FY2028 EPS to $13.26 from $13.45. The breadth of the reductions signals some pressure on longer-term earnings expectations.

Insider Transactions at PulteGroup

In related news, COO Matthew William Koart sold 7,457 shares of the business's stock in a transaction on Wednesday, May 27th. The stock was 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 directly owned 28,100 shares in the company, valued at $3,372,000. The trade was a 20.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.75% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of research firms recently commented on PHM. Oppenheimer reiterated an "outperform" rating on shares of PulteGroup in a report on Tuesday, May 26th. Evercore restated an "outperform" rating and issued a $162.00 price objective on shares of PulteGroup in a research note on Thursday, July 23rd. Weiss Ratings raised PulteGroup from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, July 23rd. Wells Fargo & Company lifted their target price on PulteGroup from $140.00 to $150.00 and gave the stock an "overweight" rating in a research note on Monday, July 6th. Finally, Citigroup decreased their target price on PulteGroup from $138.00 to $134.00 and set a "neutral" rating on the stock in a report on Friday, July 24th. Ten equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, PulteGroup presently has an average rating of "Moderate Buy" and a consensus target price of $143.14.

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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