Fifth Third Bancorp Grows Stake in PulteGroup, Inc. $PHM

Key Points

• Fifth Third Bancorp sharply increased its PulteGroup stake by 782.9% in the first quarter, ending with 57,654 shares valued at about $6.8 million.
• PulteGroup reported mixed quarterly results, with EPS of $1.79 missing estimates by a penny while revenue of $3.41 billion slightly topped expectations; revenue was down 12.4% year over year.
• The company announced a $1.5 billion share repurchase program and paid a quarterly dividend of $0.26 per share, reflecting continued capital returns to shareholders.

Fifth Third Bancorp grew its stake in PulteGroup, Inc. (NYSE:PHM - Free Report) by 782.9% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 57,654 shares of the construction company's stock after purchasing an additional 51,124 shares during the quarter. Fifth Third Bancorp's holdings in PulteGroup were worth $6,781,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of PHM. Focus Partners Wealth lifted its position in PulteGroup by 20.5% during the first quarter. Focus Partners Wealth now owns 12,517 shares of the construction company's stock valued at $1,287,000 after buying an additional 2,128 shares during the period. EverSource Wealth Advisors LLC grew 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 buying an additional 804 shares during the period. Guggenheim Capital LLC increased its stake 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 acquiring an additional 975 shares in the last quarter. Baird Financial Group Inc. lifted its position in PulteGroup by 8.0% during the 2nd quarter. Baird Financial Group Inc. now owns 29,060 shares of the construction company's stock valued at $3,065,000 after acquiring an additional 2,164 shares during the period. Finally, Cerity Partners LLC lifted its position in PulteGroup by 17.6% during the 2nd quarter. Cerity Partners LLC now owns 41,677 shares of the construction company's stock valued at $4,395,000 after acquiring an additional 6,240 shares during the period. 89.90% of the stock is owned by hedge funds and other institutional investors.

PulteGroup Stock Performance

Shares of PHM stock opened at $129.11 on Friday. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.14. The company has a 50 day moving average price of $122.75 and a 200-day moving average price of $124.98. PulteGroup, Inc. has a 52 week low of $107.91 and a 52 week high of $144.49. The firm has a market capitalization of $24.59 billion, a PE ratio of 12.49, a P/E/G ratio of 1.60 and a beta of 1.18.

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

PulteGroup Announces Dividend

The company also recently declared 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 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Tuesday, June 16th. PulteGroup's dividend payout ratio (DPR) is 10.06%.

PulteGroup declared that its board has initiated a share repurchase program on Thursday, April 23rd that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the construction company to buy up to 6.1% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

PHM has been the subject of a number of analyst reports. Bank of America decreased their target price on shares of PulteGroup from $145.00 to $140.00 and set a "buy" rating for the company in a research note on Monday, April 20th. Barclays boosted their price target on PulteGroup from $112.00 to $123.00 and gave the stock an "equal weight" rating in a research report on Tuesday. Weiss Ratings lowered PulteGroup from a "buy (b-)" rating to a "hold (c)" rating in a research report on Monday, April 27th. Zacks Research upgraded PulteGroup from a "strong sell" rating to a "hold" rating in a research note on Monday, April 13th. Finally, Evercore boosted their target price on PulteGroup from $146.00 to $151.00 and gave the stock an "outperform" rating in a report on Friday, April 24th. Ten analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, PulteGroup currently has a consensus rating of "Moderate Buy" and a consensus price target of $142.21.

Insiders Place Their Bets

In related news, COO Matthew William Koart sold 7,457 shares of PulteGroup 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 owned 28,100 shares of the company's stock, valued at $3,372,000. The trade was a 20.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Lila Snyder sold 3,339 shares of the 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 completion of the transaction, the director directly owned 3,540 shares in the company, valued at approximately $414,817.20. This represents a 48.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.75% of the company's stock.

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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