PulteGroup, Inc. $PHM Shares Purchased by Oppenheimer & Co. Inc.

Key Points

• Oppenheimer & Co. increased its stake in PulteGroup by 26.7% in Q4, buying an additional 13,092 shares to hold 62,195 shares valued at about $7.29 million.
• The company's Board authorized a $1.5 billion share buyback (up to ~6.1% of outstanding shares) and declared a quarterly dividend of $0.26 per share (annualized yield ~0.9%).
• PulteGroup slightly missed the quarter with $1.79 EPS vs. $1.80 consensus and reported revenue down 12.4% year-over-year, while the stock trades near $119 with an average analyst target around $140.71.

Oppenheimer & Co. Inc. boosted its holdings in PulteGroup, Inc. (NYSE:PHM - Free Report) by 26.7% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 62,195 shares of the construction company's stock after buying an additional 13,092 shares during the period. Oppenheimer & Co. Inc.'s holdings in PulteGroup were worth $7,293,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Nordea Investment Management AB raised its holdings in shares of PulteGroup by 2.4% in the 4th quarter. Nordea Investment Management AB now owns 573,065 shares of the construction company's stock worth $67,387,000 after purchasing an additional 13,259 shares in the last quarter. Principal Financial Group Inc. raised its holdings in shares of PulteGroup by 24.2% in the 3rd quarter. Principal Financial Group Inc. now owns 312,935 shares of the construction company's stock worth $41,348,000 after purchasing an additional 61,009 shares in the last quarter. Nisa Investment Advisors LLC raised its holdings in shares of PulteGroup by 10.5% in the 3rd quarter. Nisa Investment Advisors LLC now owns 105,470 shares of the construction company's stock worth $13,959,000 after purchasing an additional 10,028 shares in the last quarter. Dorato Capital Management bought a new stake in shares of PulteGroup in the 4th quarter worth approximately $2,625,000. Finally, EFG Asset Management Americas Corp. raised its holdings in shares of PulteGroup by 351.9% in the 3rd quarter. EFG Asset Management Americas Corp. now owns 46,752 shares of the construction company's stock worth $6,177,000 after purchasing an additional 36,407 shares in the last quarter. 89.90% of the stock is owned by institutional investors and hedge funds.

PulteGroup Stock Performance

PHM stock opened at $119.44 on Friday. The firm has a 50 day moving average of $124.18 and a two-hundred day moving average of $124.68. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.14. PulteGroup, Inc. has a 12 month low of $95.20 and a 12 month high of $144.49. The company has a market capitalization of $22.75 billion, a price-to-earnings ratio of 11.55, a P/E/G ratio of 1.55 and a beta of 1.24.

PulteGroup (NYSE:PHM - Get Free Report) last released its earnings results on Thursday, April 23rd. The construction company reported $1.79 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 company had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.40 billion. During the same quarter in the previous year, the company earned $2.57 earnings per share. PulteGroup's revenue for the quarter was down 12.4% compared to the same quarter last year. As a group, equities analysts anticipate that PulteGroup, Inc. will post 10.02 EPS for the current fiscal year.

PulteGroup declared that its Board of Directors has authorized a share buyback plan on Thursday, April 23rd that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the construction company to buy up to 6.1% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.

PulteGroup Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, July 2nd. Shareholders of record on Tuesday, June 16th will be issued 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 yield of 0.9%. PulteGroup's dividend payout ratio is currently 10.06%.

Insider Activity

In other news, EVP Kevin A. Henry sold 5,173 shares of the firm's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $141.03, for a total value of $729,548.19. Following the transaction, the executive vice president owned 14,673 shares of the company's stock, valued at approximately $2,069,333.19. This trade represents a 26.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Todd N. Sheldon sold 14,220 shares of the firm's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $135.01, for a total transaction of $1,919,842.20. Following the completion of the transaction, the executive vice president directly owned 69,753 shares in the company, valued at $9,417,352.53. This trade represents a 16.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 149,952 shares of company stock worth $20,162,165. 0.75% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on PHM shares. Bank of America dropped their target price on shares of PulteGroup from $145.00 to $140.00 and set a "buy" rating on the stock in a research report on Monday, April 20th. Seaport Research Partners reissued a "sell" rating and issued a $100.00 target price (down from $155.00) on shares of PulteGroup in a research report on Tuesday, April 7th. Royal Bank Of Canada lifted their target price on shares of PulteGroup from $111.00 to $115.00 and gave the stock a "sector perform" rating in a research report on Friday, January 30th. Citigroup lifted their target price on shares of PulteGroup from $136.00 to $138.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. Finally, Zacks Research raised shares of PulteGroup from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. Ten equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $140.71.

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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