PulteGroup (NYSE:PHM) Shares Break Above 200 Day Moving Average - Here's What Happened

Key Points

• PulteGroup shares rose 3.9% and briefly moved above their 200-day moving average of $124.22, trading as high as $124.60.
• Analyst sentiment remains generally positive, with an average “Moderate Buy” rating and a consensus price target of $137.24, despite some recent downgrades and target-price cuts.
• The company’s latest quarterly results missed expectations: adjusted earnings were $2.53 per share versus $2.63 expected, while revenue fell 9.8% year over year to $3.97 billion. PulteGroup also pays a quarterly dividend of $0.26 per share, yielding about 0.8%.

PulteGroup, Inc. (NYSE:PHM - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $124.22 and traded as high as $124.60. PulteGroup shares last traded at $124.4090, with a volume of 1,996,554 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on PHM shares. Barclays lowered their price target on PulteGroup from $110.00 to $109.00 and set an "equal weight" rating for the company in a research report on Friday, October 23rd. Wolfe Research set a $129.00 target price on shares of PulteGroup and gave the stock an "outperform" rating in a research note on Monday, August 24th. The Goldman Sachs Group set a $138.00 target price on shares of PulteGroup in a report on Monday, October 12th. Piper Sandler downgraded shares of PulteGroup to a "hold" rating and set a $145.00 target price for the company. in a report on Thursday, October 8th. Finally, Evercore reissued an "outperform" rating on shares of PulteGroup in a research report on Friday, September 25th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $137.24.

PulteGroup Stock Up 3.9%

The stock has a 50-day moving average of $119.35 and a 200 day moving average of $124.22. The company has a market capitalization of $22.90 billion, a PE ratio of 13.29, a P/E/G ratio of 1.98 and a beta of 1.16. The company has a quick ratio of 0.71, a current ratio of 0.71 and a debt-to-equity ratio of 0.14.

PulteGroup (NYSE:PHM - Get Free Report) last posted its quarterly earnings data on Thursday, October 22nd. The construction company reported $2.53 earnings per share for the quarter, missing the consensus estimate of $2.63 by ($0.10). The business had revenue of $3.97 billion during the quarter, compared to analysts' expectations of $4.15 billion. PulteGroup had a return on equity of 14.29% and a net margin of 11.24%. The firm's revenue for the quarter was down 9.8% on a year-over-year basis. During the same period in the prior year, the firm posted $2.96 EPS. Sell-side analysts anticipate that PulteGroup, Inc. will post 9.51 EPS for the current year.

PulteGroup Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, October 2nd. Stockholders of record on Tuesday, September 15th were paid a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Tuesday, September 15th. PulteGroup's payout ratio is presently 11.11%.

Hedge Funds Weigh In On PulteGroup

Institutional investors have recently added to or reduced their stakes in the stock. State Street Corp grew its holdings in PulteGroup by 3.2% during the second quarter. State Street Corp now owns 9,174,111 shares of the construction company's stock valued at $1,261,092,000 after purchasing an additional 288,054 shares during the period. First Trust Advisors LP increased its position in PulteGroup by 7.8% in the first quarter. First Trust Advisors LP now owns 4,314,501 shares of the construction company's stock worth $507,428,000 after buying an additional 313,581 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of PulteGroup by 0.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,146,857 shares of the construction company's stock valued at $370,008,000 after purchasing an additional 26,790 shares during the last quarter. Bank of America Corp DE lifted its stake in PulteGroup by 4.3% in the first quarter. Bank of America Corp DE now owns 1,963,175 shares of the construction company's stock worth $230,889,000 after purchasing an additional 80,352 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in PulteGroup during the second quarter valued at about $189,931,000. Institutional investors own 89.90% of the company's stock.

About PulteGroup

PulteGroup, Inc is a major U.S. homebuilding company that designs, builds and sells homes for a range of buyers, including first-time, move-up and active-adult customers. Its operations include land acquisition and development, home construction, sales and marketing, and customer service.

The company markets homes under several well-known brands, including Pulte, Centex, Del Webb, DiVosta and American West. Through these brands, PulteGroup offers a variety of single-family home designs and communities, with products tailored to different price points, lifestyles and stages of homeownership.

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