Swedbank AB Trims Holdings in PulteGroup, Inc. $PHM

Key Points

• Swedbank AB reduced its PulteGroup stake by 2.3% in the fourth quarter, selling 13,525 shares and leaving it with 571,130 shares valued at about $66.97 million.
• Insider selling continued, with Director Lila Snyder and EVP Kevin A. Henry both selling shares in recent transactions, while insiders own just 0.75% of the company.
• PulteGroup reported mixed results and returned capital to shareholders: quarterly EPS missed estimates by $0.01, revenue slightly topped expectations, and the board approved a $1.5 billion share buyback along with a quarterly dividend of $0.26 per share.

Swedbank AB trimmed its stake in PulteGroup, Inc. (NYSE:PHM - Free Report) by 2.3% during the fourth quarter, according to its most recent 13F filing with the SEC. The firm owned 571,130 shares of the construction company's stock after selling 13,525 shares during the period. Swedbank AB owned about 0.30% of PulteGroup worth $66,971,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also made changes to their positions in the company. Franklin Resources Inc. grew its holdings in shares of PulteGroup by 5.0% in the third quarter. Franklin Resources Inc. now owns 12,900,271 shares of the construction company's stock valued at $1,704,513,000 after purchasing an additional 609,640 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of PulteGroup by 13.3% in the third quarter. First Trust Advisors LP now owns 3,623,917 shares of the construction company's stock valued at $478,828,000 after purchasing an additional 424,011 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of PulteGroup by 13.1% in the second quarter. Bank of America Corp DE now owns 1,755,241 shares of the construction company's stock valued at $185,108,000 after purchasing an additional 202,870 shares in the last quarter. American Century Companies Inc. grew its holdings in shares of PulteGroup by 120.4% in the third quarter. American Century Companies Inc. now owns 1,703,049 shares of the construction company's stock valued at $225,024,000 after purchasing an additional 930,287 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its holdings in shares of PulteGroup by 7.3% in the third quarter. Bank of New York Mellon Corp now owns 1,453,403 shares of the construction company's stock valued at $192,038,000 after purchasing an additional 99,067 shares in the last quarter. 89.90% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at PulteGroup

In other PulteGroup news, Director Lila Snyder sold 3,339 shares of the business's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $117.18, for a total transaction of $391,264.02. Following the completion of the transaction, the director owned 3,540 shares in the company, valued at $414,817.20. The trade was a 48.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Kevin A. Henry sold 5,173 shares of the business's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $141.03, for a total transaction of $729,548.19. Following the transaction, the executive vice president owned 14,673 shares of the company's stock, valued at $2,069,333.19. This trade represents a 26.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.75% of the company's stock.

PulteGroup Trading Up 0.2%

NYSE PHM opened at $116.48 on Friday. 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 52 week low of $95.20 and a 52 week high of $144.49. The stock has a market capitalization of $22.19 billion, a PE ratio of 11.26, a price-to-earnings-growth ratio of 1.48 and a beta of 1.23. The firm has a 50 day moving average of $119.25 and a two-hundred day moving average of $124.07.

PulteGroup (NYSE:PHM - Get Free Report) last posted its quarterly 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 return on equity of 16.41% and a net margin of 12.14%.The firm had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.40 billion. During the same quarter last year, the firm earned $2.57 EPS. The company's revenue was down 12.4% on a year-over-year basis. As a group, research analysts expect that PulteGroup, Inc. will post 10 EPS for the current fiscal year.

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

PulteGroup Dividend Announcement

The company also recently declared 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. 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 10.06%.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on PHM shares. Wells Fargo & Company lifted their price objective on shares of PulteGroup from $132.00 to $140.00 and gave the company an "overweight" rating in a report on Friday, April 24th. Raymond James Financial restated an "outperform" rating and issued a $145.00 price objective on shares of PulteGroup in a report on Wednesday, February 4th. Zacks Research upgraded shares of PulteGroup from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Citigroup lifted their price objective on shares of PulteGroup from $136.00 to $138.00 and gave the company a "neutral" rating in a report on Friday, April 24th. Finally, Bank of America dropped their price objective on shares of PulteGroup from $145.00 to $140.00 and set a "buy" rating for the company in a report on Monday, April 20th. Ten analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $140.71.

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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