Hsbc Holdings PLC Reduces Stake in PulteGroup, Inc. $PHM

Key Points

• Hsbc Holdings PLC cut its PulteGroup stake by 2.1% in the fourth quarter, selling 14,297 shares and ending with 662,117 shares valued at about $77.7 million.
• PulteGroup reported mixed quarterly results, missing EPS expectations by one cent at $1.79 while revenue came in slightly above forecasts at $3.41 billion; revenue still fell 12.4% year over year.
• The company’s board approved a $1.5 billion share repurchase program, and PulteGroup also paid a quarterly dividend of $0.26 per share, equal to a 0.8% annualized yield.

Hsbc Holdings PLC reduced its stake in shares of PulteGroup, Inc. (NYSE:PHM - Free Report) by 2.1% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 662,117 shares of the construction company's stock after selling 14,297 shares during the quarter. Hsbc Holdings PLC owned about 0.35% of PulteGroup worth $77,679,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in PHM. Rachor Investment Advisory Services LLC purchased a new position in shares of PulteGroup in the 4th quarter worth approximately $31,000. DV Equities LLC purchased a new stake in PulteGroup during the 4th quarter valued at $32,000. Lloyd Advisory Services LLC. bought a new stake in PulteGroup in the fourth quarter worth $33,000. High Point Wealth Management LLC bought a new stake in PulteGroup in the fourth quarter worth $38,000. Finally, Beacon Financial Strategies CORP purchased a new position in PulteGroup during the fourth quarter worth $40,000. 89.90% of the stock is currently owned by hedge funds and other institutional investors.

PulteGroup Stock Up 0.1%

Shares of PulteGroup stock opened at $133.79 on Friday. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.94 and a quick ratio of 0.94. The stock has a market cap of $25.49 billion, a price-to-earnings ratio of 12.94, a PEG ratio of 1.70 and a beta of 1.18. The firm's 50-day moving average is $122.23 and its two-hundred day moving average is $124.62. PulteGroup, Inc. has a 1 year low of $107.07 and a 1 year high of $144.49.

PulteGroup (NYSE:PHM - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The construction company reported $1.79 earnings per share for the quarter, missing the consensus estimate 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 in the previous year, the company posted $2.57 EPS. PulteGroup's revenue for the quarter was down 12.4% on a year-over-year basis. As a group, research analysts expect that PulteGroup, Inc. will post 9.95 earnings per share for the current fiscal year.

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

PulteGroup Announces Dividend

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

Insider Buying and Selling at PulteGroup

In other news, Director Lila Snyder sold 3,339 shares of the business's stock in a transaction on Friday, May 8th. The stock was 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 of the company's stock, valued at approximately $414,817.20. The trade was a 48.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Matthew William Koart sold 7,457 shares of the company'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 sale, the chief operating officer owned 28,100 shares of the company's stock, valued at $3,372,000. This trade represents a 20.97% 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.

Wall Street Analyst Weigh In

PHM has been the topic of several recent analyst reports. Weiss Ratings downgraded shares of PulteGroup from a "buy (b-)" rating to a "hold (c)" rating in a research note on Monday, April 27th. Evercore lifted their price target on shares of PulteGroup from $146.00 to $151.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. Bank of America cut their price target on shares of PulteGroup from $145.00 to $140.00 and set a "buy" rating on the stock in a report on Monday, April 20th. Oppenheimer reissued an "outperform" rating on shares of PulteGroup in a research report on Tuesday, May 26th. Finally, Citigroup raised their price objective 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. Ten analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $140.71.

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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