National Pension Service Increases Position in PulteGroup, Inc. $PHM

Key Points

• National Pension Service increased its PulteGroup stake by 3.8% in the fourth quarter, ending with 507,443 shares worth about $59.5 million. Institutional ownership of PulteGroup remains high at 89.9%.
• Several analysts recently adjusted their views, with firms like Goldman Sachs, Wells Fargo, and UBS raising price targets. The stock currently carries a Moderate Buy consensus and an average target price of $140.71.
• PulteGroup reported quarterly EPS of $1.79, just below expectations, while revenue came in slightly above estimates at $3.41 billion. The company also announced a $1.50 billion share buyback and a quarterly dividend of $0.26 per share.

National Pension Service boosted its holdings in shares of PulteGroup, Inc. (NYSE:PHM - Free Report) by 3.8% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 507,443 shares of the construction company's stock after acquiring an additional 18,455 shares during the period. National Pension Service owned 0.26% of PulteGroup worth $59,503,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the business. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund purchased a new stake in PulteGroup during the 4th quarter valued at about $14,580,000. Northwestern Mutual Wealth Management Co. grew its stake in PulteGroup by 6.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 21,946 shares of the construction company's stock valued at $2,573,000 after acquiring an additional 1,301 shares in the last quarter. Intech Investment Management LLC grew its stake in PulteGroup by 87.8% during the 4th quarter. Intech Investment Management LLC now owns 10,185 shares of the construction company's stock valued at $1,194,000 after acquiring an additional 4,763 shares in the last quarter. Foundations Investment Advisors LLC grew its stake in PulteGroup by 29.5% during the 4th quarter. Foundations Investment Advisors LLC now owns 3,069 shares of the construction company's stock valued at $360,000 after acquiring an additional 700 shares in the last quarter. Finally, Baker Avenue Asset Management LP grew its stake in PulteGroup by 15.9% during the 4th quarter. Baker Avenue Asset Management LP now owns 7,430 shares of the construction company's stock valued at $871,000 after acquiring an additional 1,020 shares in the last quarter. Hedge funds and other institutional investors own 89.90% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. The Goldman Sachs Group increased their price target on shares of PulteGroup from $133.00 to $142.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Wells Fargo & Company increased their price target on shares of PulteGroup from $132.00 to $140.00 and gave the company an "overweight" rating in a research note on Friday, April 24th. Barclays dropped their price target on shares of PulteGroup from $115.00 to $112.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 8th. UBS Group increased their price target on shares of PulteGroup from $159.00 to $162.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Finally, Zacks Research raised shares of PulteGroup from a "strong sell" rating to a "hold" rating in a research note on Monday, April 13th. Ten research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $140.71.

Insider Buying and Selling

In related news, COO Matthew William Koart sold 7,457 shares of the 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 completion of the transaction, the chief operating officer owned 28,100 shares of the company's stock, valued at approximately $3,372,000. This trade represents a 20.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Lila Snyder sold 3,339 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $117.18, for a total transaction of $391,264.02. Following the transaction, the director directly owned 3,540 shares of the company's stock, valued at $414,817.20. The trade was 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 Stock Performance

PulteGroup stock opened at $118.38 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 $22.55 billion, a price-to-earnings ratio of 11.45, a price-to-earnings-growth ratio of 1.50 and a beta of 1.23. The firm has a 50 day simple moving average of $119.03 and a 200-day simple moving average of $124.02. PulteGroup, Inc. has a 1-year low of $95.20 and a 1-year high of $144.49.

PulteGroup (NYSE:PHM - Get Free Report) last posted 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). The company had revenue of $3.41 billion for the quarter, compared to analysts' expectations of $3.40 billion. PulteGroup had a return on equity of 16.41% and a net margin of 12.14%.The business's revenue for the quarter was down 12.4% on a year-over-year basis. During the same period in the previous year, the business posted $2.57 EPS. On average, analysts expect that PulteGroup, Inc. will post 10 EPS for the current year.

PulteGroup Announces Dividend

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

PulteGroup announced that its board has initiated a share buyback program on Thursday, April 23rd that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the construction company to purchase up to 6.1% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its shares are undervalued.

About PulteGroup

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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