PFA Pension Forsikringsaktieselskab Invests $40.74 Million in PulteGroup, Inc. $PHM

Key Points

• PFA Pension bought 344,863 shares of PulteGroup in Q4—an acquisition worth about $40.74 million that now represents roughly 0.18% ownership, per the fund's 13F filing.
• PulteGroup's board authorized a $1.5 billion share buyback (up to 6.1% of shares) and declared a quarterly dividend of $0.26 per share (annualized $1.04, ~0.9% yield), signaling shareholder return priorities.
• In the most recent quarter PulteGroup reported EPS of $1.79 (missed by $0.01) and revenue of $3.41 billion (down 12.4% y/y); analysts hold a consensus "Moderate Buy" with an average price target of $140.71.

PFA Pension Forsikringsaktieselskab acquired a new position in shares of PulteGroup, Inc. (NYSE:PHM - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 344,863 shares of the construction company's stock, valued at approximately $40,739,000. PFA Pension Forsikringsaktieselskab owned 0.18% of PulteGroup as of its most recent SEC filing.

A number of other institutional investors also recently made changes to their positions in the company. Franklin Resources Inc. boosted its holdings in shares of PulteGroup by 5.0% during 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 during the period. First Trust Advisors LP boosted its holdings in shares of PulteGroup by 13.3% during 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 during the period. Massachusetts Financial Services Co. MA bought a new stake in shares of PulteGroup during the third quarter worth approximately $315,883,000. Bank of America Corp DE boosted its holdings in shares of PulteGroup by 13.1% during the second quarter. Bank of America Corp DE now owns 1,755,241 shares of the construction company's stock worth $185,108,000 after acquiring an additional 202,870 shares during the period. Finally, American Century Companies Inc. boosted its holdings in shares of PulteGroup by 120.4% during 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 during the period. Institutional investors own 89.90% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on PHM. Seaport Research Partners restated a "sell" rating and set a $100.00 price objective (down from $155.00) on shares of PulteGroup in a report on Tuesday, April 7th. Citigroup boosted their price objective on PulteGroup from $136.00 to $138.00 and gave the stock a "neutral" rating in a report on Friday, April 24th. Royal Bank Of Canada lifted their price target on shares of PulteGroup from $111.00 to $115.00 and gave the company a "sector perform" rating in a research report on Friday, January 30th. Evercore lifted their price target on shares of PulteGroup from $146.00 to $151.00 and gave the company an "outperform" rating in a research report on Friday, April 24th. Finally, JPMorgan Chase & Co. dropped their price target on shares of PulteGroup from $149.00 to $131.00 and set an "overweight" rating for the company in a research report on Tuesday, February 3rd. Ten investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $140.71.

PulteGroup Stock Down 2.4%

NYSE PHM opened at $119.44 on Friday. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.14. PulteGroup, Inc. has a 1-year low of $95.20 and a 1-year high of $144.49. The company has a 50 day moving average of $124.18 and a 200-day moving average of $124.71. The company has a market cap of $22.75 billion, a price-to-earnings ratio of 11.55, a PEG ratio of 1.51 and a beta of 1.24.

PulteGroup (NYSE:PHM - Get Free Report) last released its quarterly earnings results 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 business had revenue of $3.41 billion during the quarter, compared to analyst estimates of $3.40 billion. During the same quarter in the previous year, the firm posted $2.57 earnings per share. The firm's quarterly revenue was down 12.4% on a year-over-year basis. On average, equities research analysts expect that PulteGroup, Inc. will post 10.02 earnings per share for the current fiscal year.

PulteGroup Announces Dividend

The company also recently disclosed 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 annualized dividend and a yield of 0.9%. The ex-dividend date is Tuesday, June 16th. PulteGroup's payout ratio is currently 10.06%.

PulteGroup declared that its Board of Directors has initiated a stock repurchase program on Thursday, April 23rd that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the construction company to purchase up to 6.1% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling at PulteGroup

In other PulteGroup news, EVP Kevin A. Henry sold 5,173 shares of the business's 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 completion of the transaction, the executive vice president directly owned 14,673 shares in the company, valued at $2,069,333.19. The trade was a 26.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Brien P. O'meara sold 4,000 shares of the business's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $135.51, for a total transaction of $542,040.00. Following the transaction, the vice president owned 8,601 shares of the company's stock, valued at approximately $1,165,521.51. This represents a 31.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 149,952 shares of company stock valued at $20,162,165. 0.75% of the stock is currently owned by insiders.

PulteGroup 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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