Dimensional Fund Advisors LP Buys 26,790 Shares of PulteGroup, Inc. $PHM

Key Points

• Dimensional Fund Advisors LP increased its stake in PulteGroup by 0.9% in the first quarter, buying 26,790 additional shares and bringing its total holding to 3,146,857 shares worth about $370 million.
• PulteGroup reported Q1 earnings of $1.79 per share, slightly missing expectations, while revenue of $3.41 billion was roughly in line with forecasts but down 12.4% from a year earlier.
• The company’s board authorized a $1.5 billion stock buyback and recently paid a quarterly dividend of $0.26 per share, even as several insiders sold shares and analysts maintained a Moderate Buy consensus.

Dimensional Fund Advisors LP increased its stake in PulteGroup, Inc. (NYSE:PHM - Free Report) by 0.9% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 3,146,857 shares of the construction company's stock after buying an additional 26,790 shares during the period. Dimensional Fund Advisors LP owned 1.65% of PulteGroup worth $370,008,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in shares of PulteGroup in the fourth quarter worth $466,653,000. Price T Rowe Associates Inc. MD raised its position in shares of PulteGroup by 126.5% in 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 raised its position in shares of PulteGroup by 5,485.0% in the 4th quarter. Public Sector Pension Investment Board now owns 930,622 shares of the construction company's stock worth $109,125,000 after purchasing an additional 913,959 shares during the last quarter. Franklin Resources Inc. boosted its stake in PulteGroup by 5.1% in the 4th quarter. Franklin Resources Inc. now owns 13,555,304 shares of the construction company's stock worth $1,589,495,000 after purchasing an additional 655,033 shares in the last quarter. Finally, Milford Funds Ltd. bought a new position in PulteGroup in the 4th quarter worth about $68,379,000. Institutional investors own 89.90% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Citigroup upped their target price on shares of PulteGroup from $136.00 to $138.00 and gave the stock a "neutral" rating in a research note on Friday, April 24th. Zacks Research raised PulteGroup from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. 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 note on Tuesday, April 7th. Bank of America reduced their target price on PulteGroup from $145.00 to $140.00 and set a "buy" rating for the company in a report on Monday, April 20th. Finally, UBS Group upped their price target on PulteGroup from $159.00 to $162.00 and gave the company a "buy" rating in a report on Friday, April 24th. Ten analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $142.21.

PulteGroup Stock Performance

PHM stock opened at $124.24 on Wednesday. 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 1 year low of $108.49 and a 1 year high of $144.49. The company has a market cap of $23.67 billion, a P/E ratio of 12.02, a price-to-earnings-growth ratio of 1.57 and a beta of 1.18. The stock's fifty day moving average price is $123.27 and its 200-day moving average price is $125.12.

PulteGroup (NYSE:PHM - Get Free Report) last posted its quarterly earnings data 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 net margin of 12.14% and a return on equity of 16.41%. The firm had revenue of $3.41 billion for the quarter, compared to analysts' expectations of $3.40 billion. During the same quarter last year, the company posted $2.57 EPS. The firm's revenue was down 12.4% compared to the same quarter last year. On average, equities analysts forecast that PulteGroup, Inc. will post 9.95 earnings per share for the current year.

PulteGroup Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Tuesday, June 16th were paid a $0.26 dividend. This represents a $1.04 annualized dividend and a dividend yield of 0.8%. The ex-dividend date was Tuesday, June 16th. PulteGroup's dividend payout ratio is 10.06%.

PulteGroup declared that its board has authorized a stock buyback plan on Thursday, April 23rd that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the construction company to repurchase up to 6.1% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Lila Snyder sold 3,339 shares of the business's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $117.18, for a total transaction of $391,264.02. Following the completion of the sale, the director directly owned 3,540 shares in the company, valued at approximately $414,817.20. The trade was a 48.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Matthew William Koart sold 7,457 shares of the company'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 transaction of $894,840.00. Following the sale, the chief operating officer directly owned 28,100 shares of the company's stock, valued at approximately $3,372,000. This represents a 20.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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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