Simmons Bank Invests $1.94 Million in PulteGroup, Inc. $PHM

Key Points

• Simmons Bank opened a new position in PulteGroup during the first quarter, buying 16,460 shares valued at about $1.94 million.
• Institutional ownership in PulteGroup remains high at 89.90%, and several other funds also recently increased their stakes in the homebuilder.
• Wall Street is still broadly positive on PHM, with analysts assigning a Moderate Buy rating and a consensus price target of $140.71, despite mixed recent earnings results and some insider selling.

Simmons Bank acquired a new position in PulteGroup, Inc. (NYSE:PHM - Free Report) during the first quarter, according to the company in its most recent filing with the SEC. The fund acquired 16,460 shares of the construction company's stock, valued at approximately $1,936,000.

Several other large investors also recently modified their holdings of PHM. Golden State Wealth Management LLC boosted its stake in PulteGroup by 18.3% during the 4th quarter. Golden State Wealth Management LLC now owns 484 shares of the construction company's stock valued at $57,000 after acquiring an additional 75 shares during the last quarter. Evergreen Capital Management LLC increased its position in shares of PulteGroup by 2.8% in the 2nd quarter. Evergreen Capital Management LLC now owns 2,875 shares of the construction company's stock worth $304,000 after purchasing an additional 78 shares during the last quarter. Stephens Inc. AR raised its stake in shares of PulteGroup by 3.5% in the 4th quarter. Stephens Inc. AR now owns 2,350 shares of the construction company's stock valued at $276,000 after purchasing an additional 80 shares in the last quarter. Perigon Wealth Management LLC raised its stake in shares of PulteGroup by 3.6% in the 4th quarter. Perigon Wealth Management LLC now owns 2,672 shares of the construction company's stock valued at $313,000 after purchasing an additional 92 shares in the last quarter. Finally, Opal Wealth Advisors LLC lifted its position in shares of PulteGroup by 4.8% during the fourth quarter. Opal Wealth Advisors LLC now owns 2,169 shares of the construction company's stock worth $254,000 after purchasing an additional 99 shares during the last quarter. 89.90% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on PHM. Bank of America reduced their price target 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. Citigroup increased their price objective on shares of PulteGroup from $136.00 to $138.00 and gave the stock a "neutral" rating in a research note on Friday, April 24th. Wells Fargo & Company raised their target price on shares of PulteGroup from $132.00 to $140.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. Oppenheimer reaffirmed an "outperform" rating on shares of PulteGroup in a report on Tuesday, May 26th. Finally, Truist Financial dropped their price target on PulteGroup from $170.00 to $150.00 and set a "buy" rating on the stock in a research report on Thursday, April 16th. Ten analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, PulteGroup currently has an average rating of "Moderate Buy" and a consensus target price of $140.71.

PulteGroup Price Performance

NYSE:PHM opened at $137.05 on Wednesday. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.14. The business's 50-day moving average price is $121.90 and its 200 day moving average price is $124.47. PulteGroup, Inc. has a 52-week low of $104.04 and a 52-week high of $144.49. The firm has a market cap of $26.11 billion, a P/E ratio of 13.25, a PEG ratio of 1.76 and a beta of 1.20.

PulteGroup (NYSE:PHM - Get Free Report) last announced 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). The company had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.40 billion. PulteGroup had a return on equity of 16.41% and a net margin of 12.14%.The firm's revenue for the quarter was down 12.4% on a year-over-year basis. During the same period last year, the firm earned $2.57 earnings per share. As a group, sell-side analysts predict that PulteGroup, Inc. will post 9.95 earnings per share for the current fiscal year.

PulteGroup Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Tuesday, June 16th will be paid a $0.26 dividend. The ex-dividend date of this dividend is Tuesday, June 16th. This represents a $1.04 annualized dividend and a dividend yield of 0.8%. PulteGroup's payout ratio is presently 10.06%.

PulteGroup declared that its board has approved a share repurchase program on Thursday, April 23rd that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the construction company to repurchase up to 6.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other PulteGroup news, Director Lila Snyder sold 3,339 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The stock was 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 $414,817.20. This trade represents a 48.54% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available 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 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 approximately $3,372,000. The trade was a 20.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.75% of the company's stock.

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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