ING Groep NV Makes New Investment in PulteGroup, Inc. $PHM

Key Points

• ING Groep NV opened a new position in PulteGroup during the fourth quarter, buying 16,195 shares worth about $1.9 million.
• PulteGroup reported mixed quarterly results, with revenue slightly ahead of estimates at $3.41 billion but EPS of $1.79 missing expectations by a penny and falling from $2.57 a year earlier.
• The company’s board approved a $1.5 billion share repurchase program and declared a quarterly dividend of $0.26 per share, while analysts currently rate the stock a Moderate Buy with an average target price of $140.71.

ING Groep NV purchased a new position in shares of PulteGroup, Inc. (NYSE:PHM - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 16,195 shares of the construction company's stock, valued at approximately $1,899,000.

Several other large investors also recently made changes to their positions in PHM. Norges Bank acquired a new stake in shares of PulteGroup in the fourth quarter worth $466,653,000. American Century Companies Inc. increased its position in shares of PulteGroup by 120.4% in the third quarter. American Century Companies Inc. now owns 1,703,049 shares of the construction company's stock worth $225,024,000 after acquiring an additional 930,287 shares in the last quarter. Franklin Resources Inc. increased its position in shares of PulteGroup by 5.0% in the third quarter. Franklin Resources Inc. now owns 12,900,271 shares of the construction company's stock worth $1,704,513,000 after acquiring an additional 609,640 shares in the last quarter. First Trust Advisors LP increased its position in shares of PulteGroup by 13.3% in the third quarter. First Trust Advisors LP now owns 3,623,917 shares of the construction company's stock worth $478,828,000 after acquiring an additional 424,011 shares in the last quarter. Finally, PFA Pension Forsikringsaktieselskab acquired a new stake in shares of PulteGroup in the fourth quarter worth $40,739,000. Institutional investors and hedge funds own 89.90% of the company's stock.

PulteGroup Price Performance

PHM stock opened at $122.86 on Wednesday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.94 and a current ratio of 0.94. PulteGroup, Inc. has a 1 year low of $98.27 and a 1 year high of $144.49. The firm has a market cap of $23.40 billion, a P/E ratio of 11.88, a price-to-earnings-growth ratio of 1.49 and a beta of 1.20. The stock has a 50-day simple moving average of $119.26 and a 200-day simple moving average of $124.13.

PulteGroup (NYSE:PHM - Get Free Report) last posted its earnings results on Thursday, April 23rd. The construction company reported $1.79 earnings per share (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 company had revenue of $3.41 billion during the quarter, compared to analyst estimates of $3.40 billion. During the same quarter last year, the business posted $2.57 EPS. PulteGroup's quarterly revenue was down 12.4% compared to the same quarter last year. On average, equities analysts predict that PulteGroup, Inc. will post 10 earnings per share for the current fiscal year.

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

PulteGroup Announces Dividend

The firm also recently disclosed 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 yield of 0.8%. The ex-dividend date is Tuesday, June 16th. PulteGroup's dividend payout ratio (DPR) is 10.06%.

Insider Buying and Selling

In other PulteGroup news, COO Matthew William Koart sold 7,457 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $120.00, for a total transaction of $894,840.00. Following the completion of the sale, the chief operating officer owned 28,100 shares in the company, valued at $3,372,000. This trade represents a 20.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Lila Snyder sold 3,339 shares of the firm'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 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 trade represents a 48.54% decrease in their position. The SEC filing for this sale provides additional information. 0.75% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on PHM shares. Truist Financial dropped their price objective on shares of PulteGroup from $170.00 to $150.00 and set a "buy" rating for the company in a research report on Thursday, April 16th. Oppenheimer reiterated an "outperform" rating on shares of PulteGroup in a research note on Tuesday, May 26th. Wells Fargo & Company increased their target price on PulteGroup from $132.00 to $140.00 and gave the company an "overweight" rating in a research note on Friday, April 24th. Bank of America lowered their target price on PulteGroup from $145.00 to $140.00 and set a "buy" rating for the company in a research note on Monday, April 20th. Finally, The Goldman Sachs Group increased their target price on PulteGroup from $133.00 to $142.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Ten equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, PulteGroup has a consensus rating of "Moderate Buy" and an average target price 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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