PulteGroup, Inc. (NYSE:PHM) Sees Significant Decrease in Short Interest

Key Points

• Short interest fell 15.7% in April to 6,664,467 shares (about 3.5% of shares sold short) with a short-interest ratio of 3.4 days, signaling reduced bearish positioning in PulteGroup (PHM).
• The board authorized a $1.5 billion share buyback (up to 6.1% of stock) and declared a quarterly dividend of $0.26 ($1.04 annualized, ~0.9% yield), actions that support shareholder returns.
• PulteGroup reported Q1 EPS of $1.79 (missed by $0.01) and revenue down 12.4% year‑over‑year, while analysts expect full‑year EPS of 10.02.

PulteGroup, Inc. (NYSE:PHM - Get Free Report) was the recipient of a significant drop in short interest in the month of April. As of April 15th, there was short interest totaling 6,664,467 shares, a drop of 15.7% from the March 31st total of 7,901,715 shares. Based on an average daily trading volume, of 1,946,999 shares, the short-interest ratio is currently 3.4 days. Approximately 3.5% of the shares of the company are sold short.

PulteGroup Price Performance

NYSE:PHM traded down $1.95 during mid-day trading on Friday, reaching $120.41. 254,508 shares of the stock were exchanged, compared to its average volume of 1,891,468. The business has a fifty day moving average price of $124.18 and a 200 day moving average price of $124.68. The firm has a market capitalization of $22.94 billion, a PE ratio of 11.64, a PEG ratio of 1.53 and a beta of 1.33. PulteGroup has a 1-year low of $95.20 and a 1-year high of $144.49. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.14.

PulteGroup (NYSE:PHM - Get Free Report) last released its earnings results on Thursday, April 23rd. The construction company reported $1.79 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.80 by ($0.01). The firm had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.40 billion. PulteGroup had a return on equity of 16.41% and a net margin of 12.14%.PulteGroup's revenue was down 12.4% on a year-over-year basis. During the same period in the previous year, the firm earned $2.57 earnings per share. Research analysts expect that PulteGroup will post 10.02 earnings per share for the current fiscal year.

PulteGroup declared that its board has authorized a share buyback 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 a sign that the company's leadership believes its stock is undervalued.

PulteGroup Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Tuesday, June 16th will be given a $0.26 dividend. The ex-dividend date is Tuesday, June 16th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.9%. PulteGroup's dividend payout ratio (DPR) is 10.06%.

Analyst Ratings Changes

A number of research analysts have recently commented on PHM shares. Oppenheimer reissued an "outperform" rating and set a $149.00 price target (up from $140.00) on shares of PulteGroup in a report on Friday, January 30th. Truist Financial lowered their price target on PulteGroup from $170.00 to $150.00 and set a "buy" rating on the stock in a report on Thursday, April 16th. Evercore raised their price target on PulteGroup from $146.00 to $151.00 and gave the company an "outperform" rating in a report on Friday, April 24th. Royal Bank Of Canada raised their price target on PulteGroup from $111.00 to $115.00 and gave the company a "sector perform" rating in a report on Friday, January 30th. Finally, Citigroup raised their price target on PulteGroup from $136.00 to $138.00 and gave the company a "neutral" rating in a report on Friday, April 24th. Ten equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $140.71.

Insider Transactions at PulteGroup

In other PulteGroup news, insider Ryan Marshall sold 111,250 shares of the stock in a transaction on Thursday, February 5th. The stock was sold at an average price of $133.86, for a total value of $14,891,925.00. Following the sale, the insider directly owned 659,392 shares of the company's stock, valued at $88,266,213.12. This trade represents a 14.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Kevin A. Henry sold 5,173 shares of the stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $141.03, for a total value of $729,548.19. Following the completion of the sale, the executive vice president directly owned 14,673 shares in the company, valued at $2,069,333.19. This represents a 26.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 149,952 shares of company stock valued at $20,162,165 over the last three months. 0.75% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PulteGroup

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Franklin Resources Inc. boosted its position in shares of PulteGroup by 5.1% in the 4th quarter. Franklin Resources Inc. now owns 13,555,304 shares of the construction company's stock valued at $1,589,495,000 after purchasing an additional 655,033 shares during the period. Price T Rowe Associates Inc. MD boosted its position in shares of PulteGroup by 126.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,284,197 shares of the construction company's stock valued at $502,366,000 after purchasing an additional 2,392,580 shares during the period. First Trust Advisors LP boosted its position in shares of PulteGroup by 10.4% in the 4th quarter. First Trust Advisors LP now owns 4,000,920 shares of the construction company's stock valued at $469,148,000 after purchasing an additional 377,003 shares during the period. Norges Bank acquired a new position in shares of PulteGroup in the 4th quarter valued at $466,653,000. Finally, Massachusetts Financial Services Co. MA acquired a new position in shares of PulteGroup in the 3rd quarter valued at $315,883,000. Institutional investors and hedge funds own 89.90% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.