GSA Capital Partners LLP Takes Position in PulteGroup, Inc. $PHM

Key Points

• GSA Capital Partners initiated a new position in PulteGroup, buying 14,946 shares worth about $1.75 million in the fourth quarter.
• Institutional ownership remains high, with several funds adding to their stakes and institutions controlling about 89.9% of PulteGroup’s shares.
• Analysts are generally constructive on the stock, with a Moderate Buy consensus and an average price target of $140.71, above the recent opening price of $110.95.

GSA Capital Partners LLP bought a new stake in PulteGroup, Inc. (NYSE:PHM - Free Report) in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 14,946 shares of the construction company's stock, valued at approximately $1,753,000.

A number of other institutional investors also recently modified their holdings of the business. Nordea Investment Management AB raised its stake in PulteGroup by 2.4% in the fourth quarter. Nordea Investment Management AB now owns 573,065 shares of the construction company's stock valued at $67,387,000 after purchasing an additional 13,259 shares in the last quarter. Principal Financial Group Inc. raised its stake in PulteGroup by 24.2% in the third quarter. Principal Financial Group Inc. now owns 312,935 shares of the construction company's stock valued at $41,348,000 after purchasing an additional 61,009 shares in the last quarter. Dorato Capital Management acquired a new position in PulteGroup in the fourth quarter valued at about $2,625,000. EFG Asset Management Americas Corp. raised its stake in PulteGroup by 351.9% in the third quarter. EFG Asset Management Americas Corp. now owns 46,752 shares of the construction company's stock valued at $6,177,000 after purchasing an additional 36,407 shares in the last quarter. Finally, Envestnet Asset Management Inc. raised its stake in PulteGroup by 16.1% in the third quarter. Envestnet Asset Management Inc. now owns 371,228 shares of the construction company's stock valued at $49,050,000 after purchasing an additional 51,506 shares in the last quarter. Institutional investors own 89.90% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on PHM. Royal Bank Of Canada boosted their price target on PulteGroup from $111.00 to $115.00 and gave the company a "sector perform" rating in a research note on Friday, January 30th. Citigroup boosted their price target on PulteGroup from $136.00 to $138.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. UBS Group boosted their target price on PulteGroup from $159.00 to $162.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Wells Fargo & Company boosted their target price on PulteGroup from $132.00 to $140.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Finally, Evercore boosted their target price on PulteGroup from $146.00 to $151.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. Ten research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $140.71.

PulteGroup Stock Performance

NYSE:PHM opened at $110.95 on Wednesday. The stock's 50-day moving average is $119.75 and its 200-day moving average is $124.17. PulteGroup, Inc. has a 1-year low of $95.20 and a 1-year high of $144.49. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.14. The stock has a market cap of $21.13 billion, a P/E ratio of 10.73, a price-to-earnings-growth ratio of 1.42 and a beta of 1.23.

PulteGroup (NYSE:PHM - Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The construction company reported $1.79 earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $3.40 billion. During the same period in the prior year, the company earned $2.57 EPS. The business's quarterly revenue was down 12.4% compared to the same quarter last year. Equities research analysts anticipate that PulteGroup, Inc. will post 10 earnings per share for the current year.

PulteGroup Dividend Announcement

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

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

Insider Buying and Selling

In other PulteGroup news, Director Lila Snyder sold 3,339 shares of the 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 owned 3,540 shares of the company's stock, valued at approximately $414,817.20. This represents a 48.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Kevin A. Henry sold 5,173 shares of the stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $141.03, for a total transaction of $729,548.19. Following the sale, the executive vice president directly owned 14,673 shares of the company's stock, valued at $2,069,333.19. This represents a 26.07% decrease in their position. The SEC filing for this sale provides additional information. Corporate 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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