Traders Buy Large Volume of PulteGroup Call Options (NYSE:PHM)

PulteGroup, Inc. (NYSE:PHM - Get Free Report) was the recipient of unusually large options trading activity on Wednesday. Traders bought 9,941 call options on the stock. This represents an increase of approximately 1,498% compared to the typical volume of 622 call options.

PulteGroup Stock Performance

NYSE PHM traded down $0.45 during trading hours on Friday, reaching $98.09. The stock had a trading volume of 3,156,068 shares, compared to its average volume of 2,020,206. PulteGroup has a 52-week low of $88.07 and a 52-week high of $149.47. The company has a debt-to-equity ratio of 0.13, a quick ratio of 0.86 and a current ratio of 0.86. The stock has a market cap of $19.66 billion, a P/E ratio of 6.67, a price-to-earnings-growth ratio of 0.29 and a beta of 1.37. The stock has a fifty day moving average of $100.06 and a 200 day moving average of $109.30.

PulteGroup (NYSE:PHM - Get Free Report) last released its quarterly earnings data on Tuesday, April 22nd. The construction company reported $2.57 EPS for the quarter, beating the consensus estimate of $2.47 by $0.10. PulteGroup had a net margin of 17.18% and a return on equity of 24.43%. The business had revenue of $3.89 billion for the quarter, compared to the consensus estimate of $3.86 billion. During the same period in the prior year, the firm earned $3.10 EPS. Sell-side analysts predict that PulteGroup will post 12.32 earnings per share for the current year.

PulteGroup Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 2nd. Shareholders of record on Tuesday, June 17th will be issued a $0.22 dividend. This represents a $0.88 annualized dividend and a yield of 0.90%. The ex-dividend date is Tuesday, June 17th. PulteGroup's payout ratio is 6.21%.

PulteGroup declared that its board has authorized a share buyback plan on Thursday, January 30th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the construction company to buy up to 6.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

Hedge Funds Weigh In On PulteGroup

A number of institutional investors have recently modified their holdings of PHM. Richardson Financial Services Inc. grew its holdings in PulteGroup by 16.7% during the fourth quarter. Richardson Financial Services Inc. now owns 622 shares of the construction company's stock worth $68,000 after acquiring an additional 89 shares during the period. Meridian Wealth Management LLC boosted its position in PulteGroup by 0.7% in the 4th quarter. Meridian Wealth Management LLC now owns 13,224 shares of the construction company's stock worth $1,440,000 after purchasing an additional 95 shares in the last quarter. Tocqueville Asset Management L.P. grew its stake in shares of PulteGroup by 2.0% during the 1st quarter. Tocqueville Asset Management L.P. now owns 5,062 shares of the construction company's stock worth $520,000 after purchasing an additional 100 shares during the period. Fidelis Capital Partners LLC grew its stake in shares of PulteGroup by 2.4% during the 4th quarter. Fidelis Capital Partners LLC now owns 4,384 shares of the construction company's stock worth $479,000 after purchasing an additional 103 shares during the period. Finally, TD Waterhouse Canada Inc. increased its holdings in shares of PulteGroup by 43.0% during the 4th quarter. TD Waterhouse Canada Inc. now owns 349 shares of the construction company's stock valued at $38,000 after purchasing an additional 105 shares in the last quarter. Hedge funds and other institutional investors own 89.90% of the company's stock.

Analysts Set New Price Targets

PHM has been the topic of several analyst reports. Wells Fargo & Company cut their price target on shares of PulteGroup from $140.00 to $120.00 and set an "overweight" rating on the stock in a report on Monday, April 14th. UBS Group lowered their price objective on PulteGroup from $151.00 to $141.00 and set a "buy" rating for the company in a research report on Wednesday, April 23rd. Oppenheimer reduced their target price on PulteGroup from $165.00 to $150.00 and set an "outperform" rating on the stock in a research report on Friday, January 31st. Royal Bank of Canada lowered their price target on PulteGroup from $116.00 to $109.00 and set a "sector perform" rating for the company in a report on Wednesday, April 23rd. Finally, Wedbush restated an "outperform" rating and set a $135.00 price target on shares of PulteGroup in a research note on Tuesday, April 22nd. Seven analysts have rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $134.69.

About PulteGroup

PulteGroup, Inc, through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names.