Westerkirk Capital Inc. Has $2.86 Million Holdings in PulteGroup, Inc. $PHM

Key Points

• Westerkirk Capital increased its PulteGroup stake by 59.5% in the fourth quarter, ending with 24,400 shares valued at about $2.86 million.
• Insider selling was notable, with Director Lila Snyder and COO Matthew William Koart both trimming their holdings in recent transactions.
• PulteGroup’s outlook remains mixed: analysts rate it a “Moderate Buy,” while the company recently missed EPS estimates by a penny and approved a $1.5 billion share repurchase plan plus a quarterly dividend of $0.26 per share.

Westerkirk Capital Inc. boosted its position in PulteGroup, Inc. (NYSE:PHM - Free Report) by 59.5% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 24,400 shares of the construction company's stock after buying an additional 9,100 shares during the quarter. Westerkirk Capital Inc.'s holdings in PulteGroup were worth $2,861,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Rachor Investment Advisory Services LLC acquired a new position in PulteGroup in the 4th quarter valued at $31,000. Lloyd Advisory Services LLC. acquired a new position in PulteGroup in the 4th quarter valued at $33,000. High Point Wealth Management LLC acquired a new position in PulteGroup in the 4th quarter valued at $38,000. Beacon Financial Strategies CORP acquired a new position in PulteGroup in the 4th quarter valued at $40,000. Finally, Elyxium Wealth LLC acquired a new position in PulteGroup in the 4th quarter valued at $41,000. 89.90% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In related news, Director Lila Snyder sold 3,339 shares of PulteGroup stock in a transaction dated 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 directly 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 sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Matthew William Koart sold 7,457 shares of PulteGroup stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $120.00, for a total transaction of $894,840.00. Following the transaction, the chief operating officer directly owned 28,100 shares of the company's stock, valued at $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.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on PHM shares. Zacks Research upgraded shares of PulteGroup from a "strong sell" rating to a "hold" rating in a research note on Monday, April 13th. Citigroup increased their price target on shares of PulteGroup from $136.00 to $138.00 and gave the company a "neutral" rating in a report on Friday, April 24th. Wells Fargo & Company increased their price target on shares of PulteGroup from $132.00 to $140.00 and gave the company an "overweight" rating in a report on Friday, April 24th. Oppenheimer reissued an "outperform" rating on shares of PulteGroup in a report on Tuesday, May 26th. Finally, Weiss Ratings downgraded shares of PulteGroup from a "buy (b-)" rating to a "hold (c)" rating in a report on Monday, April 27th. Ten investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, PulteGroup presently has a consensus rating of "Moderate Buy" and a consensus target price of $140.71.

PulteGroup Price Performance

NYSE:PHM opened at $117.76 on Tuesday. The company has a 50-day moving average of $119.09 and a 200-day moving average of $124.06. The company has a market capitalization of $22.43 billion, a price-to-earnings ratio of 11.39, a PEG ratio of 1.50 and a beta of 1.20. PulteGroup, Inc. has a 52 week low of $98.27 and a 52 week high of $144.49. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.94 and a current ratio of 0.94.

PulteGroup (NYSE:PHM - Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The construction company reported $1.79 EPS for the quarter, missing analysts' consensus estimates of $1.80 by ($0.01). PulteGroup had a return on equity of 16.41% and a net margin of 12.14%.The business had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.40 billion. During the same period in the previous year, the business posted $2.57 earnings per share. PulteGroup's revenue was down 12.4% on a year-over-year basis. As a group, equities research analysts anticipate that PulteGroup, Inc. will post 10 earnings per share for the current fiscal year.

PulteGroup declared that its Board of Directors has initiated a stock repurchase plan on Thursday, April 23rd that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the construction company to purchase up to 6.1% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its stock is undervalued.

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 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 of this dividend is Tuesday, June 16th. PulteGroup's dividend payout ratio (DPR) is currently 10.06%.

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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