Royal Bank of Canada Acquires 94,150 Shares of PulteGroup, Inc. $PHM

Key Points

• Royal Bank of Canada increased its PulteGroup stake by 23.4% in the first quarter, purchasing 94,150 additional shares and bringing its holdings to 496,098 shares valued at approximately $58.3 million. Institutional investors collectively own 89.9% of PHM.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $143.14. Ratings range from Seaport Research Partners’ “sell” recommendation with a $100 target to several “buy” or “overweight” calls.
• PulteGroup exceeded quarterly earnings expectations with $2.48 in EPS and $3.98 billion in revenue, though revenue fell 9.6% year over year. The company also authorized a $1.5 billion share buyback, covering up to 6.1% of outstanding shares.

Royal Bank of Canada raised its holdings in PulteGroup, Inc. (NYSE:PHM - Free Report) by 23.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 496,098 shares of the construction company's stock after buying an additional 94,150 shares during the period. Royal Bank of Canada owned 0.26% of PulteGroup worth $58,347,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in the stock. National Pension Service lifted its stake in PulteGroup by 3.8% in the 4th quarter. National Pension Service now owns 507,443 shares of the construction company's stock valued at $59,503,000 after purchasing an additional 18,455 shares during the last quarter. Concurrent Investment Advisors LLC boosted its stake in PulteGroup by 166.5% in the 4th quarter. Concurrent Investment Advisors LLC now owns 16,753 shares of the construction company's stock valued at $1,964,000 after purchasing an additional 10,467 shares during the period. Bayhunt Capital LLC acquired a new position in shares of PulteGroup in the fourth quarter valued at about $4,183,000. Lecap Asset Management Ltd. acquired a new position in shares of PulteGroup during the 4th quarter worth approximately $2,183,000. Finally, Ritholtz Wealth Management grew its position in PulteGroup by 43.2% during the fourth quarter. Ritholtz Wealth Management now owns 91,473 shares of the construction company's stock worth $10,726,000 after buying an additional 27,590 shares in the last quarter. Institutional investors own 89.90% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have commented on PHM shares. Seaport Research Partners reissued a "sell" rating and issued a $100.00 target price (down from $155.00) on shares of PulteGroup in a report on Tuesday, April 7th. Oppenheimer restated an "outperform" rating on shares of PulteGroup in a report on Tuesday, May 26th. 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 report on Monday, April 20th. Wells Fargo & Company upped their price objective on shares of PulteGroup from $140.00 to $150.00 and gave the company an "overweight" rating in a research note on Monday, July 6th. Finally, Barclays raised their target price on PulteGroup from $123.00 to $124.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 23rd. Ten equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $143.14.

PulteGroup Price Performance

PHM stock opened at $126.71 on Friday. The business has a 50-day simple moving average of $125.75 and a two-hundred day simple moving average of $125.52. PulteGroup, Inc. has a 52-week low of $108.49 and a 52-week high of $144.49. The company has a market capitalization of $23.75 billion, a P/E ratio of 12.94, a price-to-earnings-growth ratio of 1.57 and a beta of 1.18. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.78 and a current ratio of 0.78.

PulteGroup (NYSE:PHM - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The construction company reported $2.48 EPS for the quarter, beating analysts' consensus estimates of $2.36 by $0.12. The business had revenue of $3.98 billion during the quarter, compared to analyst estimates of $3.94 billion. PulteGroup had a return on equity of 15.21% and a net margin of 11.62%.PulteGroup's quarterly revenue was down 9.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.03 EPS. Research analysts expect that PulteGroup, Inc. will post 10.08 EPS for the current fiscal year.

PulteGroup announced that its Board of Directors has approved a share buyback plan 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 plans are generally a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In related news, 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 completion of the sale, the director directly owned 3,540 shares of the company's stock, valued at approximately $414,817.20. This trade represents a 48.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Matthew William Koart sold 7,457 shares of the firm's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $120.00, for a total value of $894,840.00. Following the sale, the chief operating officer directly owned 28,100 shares of the company's stock, valued at approximately $3,372,000. This represents a 20.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.75% of the company's stock.

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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