PulteGroup Target of Unusually Large Options Trading (NYSE:PHM)

Key Points

• On Wednesday, PulteGroup (NYSE:PHM) saw a significant increase in options trading, with investors purchasing 9,941 call options, marking a 1,498% rise compared to the average volume.
• PulteGroup recently reported $3.03 EPS in its quarterly earnings, which exceeded analyst expectations, although revenue for the quarter was down 4.3% year-over-year.
• Analysts have set new price targets for PulteGroup, with Wells Fargo raising its target to $135.00 and Oppenheimer lifting it to $140.00, while the consensus rating for the stock is a "Moderate Buy."

PulteGroup, Inc. (NYSE:PHM - Get Free Report) saw unusually large options trading on Wednesday. Investors purchased 9,941 call options on the stock. Thisisanincreaseofapproximately1,498% compared to the average volume of 622 call options.

PulteGroup Stock Up 0.4%

Shares of PHM traded up $0.45 during mid-day trading on Thursday, hitting $120.68. 1,611,086 shares of the company traded hands, compared to its average volume of 2,264,695. The company has a market capitalization of $23.81 billion, a PE ratio of 9.02, a price-to-earnings-growth ratio of 0.35 and a beta of 1.22. The company has a quick ratio of 0.77, a current ratio of 0.77 and a debt-to-equity ratio of 0.13. The business has a 50 day moving average of $108.66 and a 200 day moving average of $105.38. PulteGroup has a 1-year low of $88.07 and a 1-year high of $149.47.

PulteGroup (NYSE:PHM - Get Free Report) last issued its earnings results on Tuesday, July 22nd. The construction company reported $3.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.92 by $0.11. The company had revenue of $4.40 billion during the quarter, compared to analyst estimates of $4.42 billion. PulteGroup had a return on equity of 21.01% and a net margin of 15.50%. The firm's quarterly revenue was down 4.3% on a year-over-year basis. During the same quarter last year, the business posted $3.83 EPS. Equities research analysts anticipate that PulteGroup will post 12.32 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Nuveen LLC purchased a new position in PulteGroup in the 1st quarter worth approximately $213,092,000. Pacer Advisors Inc. increased its holdings in shares of PulteGroup by 2,586.8% in the first quarter. Pacer Advisors Inc. now owns 1,166,902 shares of the construction company's stock valued at $119,958,000 after purchasing an additional 1,123,471 shares during the last quarter. JPMorgan Chase & Co. lifted its position in PulteGroup by 40.3% during the first quarter. JPMorgan Chase & Co. now owns 3,486,330 shares of the construction company's stock worth $358,395,000 after buying an additional 1,001,290 shares in the last quarter. AustralianSuper Pty Ltd lifted its position in PulteGroup by 219.2% during the first quarter. AustralianSuper Pty Ltd now owns 1,039,107 shares of the construction company's stock worth $106,820,000 after buying an additional 713,534 shares in the last quarter. Finally, Man Group plc boosted its stake in PulteGroup by 136.8% during the fourth quarter. Man Group plc now owns 988,963 shares of the construction company's stock worth $107,698,000 after buying an additional 571,251 shares during the last quarter. 89.90% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on PHM shares. Seaport Res Ptn raised PulteGroup from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 22nd. Wells Fargo & Company lifted their price objective on PulteGroup from $125.00 to $135.00 and gave the company an "overweight" rating in a report on Wednesday, July 23rd. Citigroup increased their target price on shares of PulteGroup from $128.00 to $132.00 and gave the stock a "neutral" rating in a report on Wednesday, July 23rd. Raymond James Financial restated an "outperform" rating and issued a $140.00 price target (up previously from $115.00) on shares of PulteGroup in a report on Wednesday, July 23rd. Finally, Evercore ISI increased their price objective on shares of PulteGroup from $161.00 to $165.00 and gave the company an "outperform" rating in a research note on Wednesday, April 23rd. Six analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat, PulteGroup currently has an average rating of "Moderate Buy" and an average target price of $134.15.

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.