Cumberland Partners Ltd Acquires Shares of 123,603 PulteGroup, Inc. $PHM

Key Points

• Cumberland Partners Ltd disclosed a new stake in PulteGroup, buying 123,603 shares valued at about $14.49 million in the fourth quarter. The position represents roughly 0.9% of Cumberland’s holdings and 0.06% of PulteGroup.
• Wall Street remains mixed on PulteGroup, with analysts holding a Moderate Buy consensus and an average price target of $140.71. Recent updates included higher targets from UBS, Goldman Sachs, and Wells Fargo, while Seaport Research kept a sell rating.
• PulteGroup reported Q1 earnings of $1.79 per share, just below expectations, on revenue of $3.41 billion. The company also announced a $1.50 billion share buyback and a quarterly dividend of $0.26 per share.

Cumberland Partners Ltd acquired a new stake in shares of PulteGroup, Inc. (NYSE:PHM - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 123,603 shares of the construction company's stock, valued at approximately $14,494,000. PulteGroup accounts for about 0.9% of Cumberland Partners Ltd's holdings, making the stock its 28th biggest position. Cumberland Partners Ltd owned about 0.06% of PulteGroup at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of PHM. Focus Partners Wealth raised its position in shares of PulteGroup by 20.5% in the 1st quarter. Focus Partners Wealth now owns 12,517 shares of the construction company's stock worth $1,287,000 after purchasing an additional 2,128 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in shares of PulteGroup by 197.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,212 shares of the construction company's stock worth $128,000 after purchasing an additional 804 shares during the last quarter. Guggenheim Capital LLC raised its position in shares of PulteGroup by 12.9% in the 2nd quarter. Guggenheim Capital LLC now owns 8,519 shares of the construction company's stock worth $898,000 after purchasing an additional 975 shares during the last quarter. Baird Financial Group Inc. raised its position in shares of PulteGroup by 8.0% in the 2nd quarter. Baird Financial Group Inc. now owns 29,060 shares of the construction company's stock worth $3,065,000 after purchasing an additional 2,164 shares during the last quarter. Finally, Cerity Partners LLC raised its position in shares of PulteGroup by 17.6% in the 2nd quarter. Cerity Partners LLC now owns 41,677 shares of the construction company's stock worth $4,395,000 after purchasing an additional 6,240 shares during the last quarter. Hedge funds and other institutional investors own 89.90% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently issued reports on PHM. UBS Group lifted their price target on PulteGroup from $159.00 to $162.00 and gave the stock a "buy" rating in a research report on Friday, April 24th. The Goldman Sachs Group lifted their price target on PulteGroup from $133.00 to $142.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. Wells Fargo & Company lifted their price target on PulteGroup from $132.00 to $140.00 and gave the stock an "overweight" rating in a research report on Friday, April 24th. Seaport Research Partners reaffirmed a "sell" rating and issued a $100.00 price target (down from $155.00) on shares of PulteGroup in a research report on Tuesday, April 7th. Finally, Zacks Research raised PulteGroup from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. Ten equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $140.71.

Insider Transactions at PulteGroup

In other PulteGroup news, EVP Kevin A. Henry sold 5,173 shares of the business's stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $141.03, for a total transaction of $729,548.19. Following the completion of the sale, the executive vice president directly owned 14,673 shares in the company, valued at $2,069,333.19. The trade was a 26.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Lila Snyder sold 3,339 shares of the business's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $117.18, for a total value of $391,264.02. Following the sale, the director owned 3,540 shares of the company's stock, valued at approximately $414,817.20. This represents a 48.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.75% of the company's stock.

PulteGroup Price Performance

Shares of NYSE:PHM opened at $116.48 on Friday. PulteGroup, Inc. has a fifty-two week low of $95.20 and a fifty-two week high of $144.49. The business has a 50-day simple moving average of $119.25 and a two-hundred day simple moving average of $124.07. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.94 and a current ratio of 0.94. The firm has a market cap of $22.19 billion, a price-to-earnings ratio of 11.26, a price-to-earnings-growth ratio of 1.47 and a beta of 1.23.

PulteGroup (NYSE:PHM - Get Free Report) last issued its earnings results on Thursday, April 23rd. The construction company reported $1.79 earnings per share 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 during the quarter, compared to analysts' expectations of $3.40 billion. During the same period last year, the firm posted $2.57 EPS. PulteGroup's quarterly revenue was down 12.4% compared to the same quarter last year. On average, analysts expect that PulteGroup, Inc. will post 10 earnings per share for the current year.

PulteGroup Announces Dividend

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

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

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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