PulteGroup (NYSE:PHM) Price Target Raised to $150.00 at Wells Fargo & Company

Key Points

• Wells Fargo raised PulteGroup’s price target to $150 from $140 and kept an overweight rating, implying about 12.1% upside from the prior close.
• PulteGroup reported quarterly EPS of $1.79, narrowly missing expectations, while revenue of $3.41 billion slightly beat estimates but fell 12.4% year over year.
• The company authorized a $1.5 billion share repurchase plan, covering up to 6.1% of its stock, which may signal management views the shares as undervalued.

PulteGroup (NYSE:PHM - Get Free Report) had its target price upped by equities research analysts at Wells Fargo & Company from $140.00 to $150.00 in a research report issued on Monday, MarketBeat.com reports. The firm presently has an "overweight" rating on the construction company's stock. Wells Fargo & Company's price objective indicates a potential upside of 12.11% from the company's previous close.

Other equities research analysts have also issued reports about the stock. Seaport Research Partners reissued a "sell" rating and set a $100.00 target price (down from $155.00) on shares of PulteGroup in a research note on Tuesday, April 7th. Zacks Research raised PulteGroup from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Citigroup increased their price target on PulteGroup from $136.00 to $138.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. Bank of America dropped their price objective on PulteGroup from $145.00 to $140.00 and set a "buy" rating on the stock in a report on Monday, April 20th. Finally, Weiss Ratings cut PulteGroup from a "buy (b-)" rating to a "hold (c)" rating in a research report on Monday, April 27th. Ten equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $141.43.

PulteGroup Stock Up 0.1%

Shares of PHM stock opened at $133.79 on Monday. The stock has a 50 day moving average of $122.23 and a 200 day moving average of $124.61. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.14. The stock has a market cap of $25.49 billion, a P/E ratio of 12.94, a P/E/G ratio of 1.70 and a beta of 1.18. PulteGroup has a twelve month low of $107.07 and a twelve month high of $144.49.

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 the consensus estimate of $1.80 by ($0.01). PulteGroup had a return on equity of 16.41% and a net margin of 12.14%.The company had revenue of $3.41 billion during the quarter, compared to analysts' expectations of $3.40 billion. During the same quarter in the prior year, the company posted $2.57 EPS. The company's revenue for the quarter was down 12.4% on a year-over-year basis. As a group, sell-side analysts expect that PulteGroup will post 9.95 EPS for the current year.

PulteGroup announced that its board has initiated a share repurchase plan on Thursday, April 23rd that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the construction company to purchase up to 6.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at PulteGroup

In related news, COO Matthew William Koart sold 7,457 shares of PulteGroup stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $120.00, for a total transaction of $894,840.00. Following the transaction, the chief operating officer owned 28,100 shares in the company, valued at approximately $3,372,000. This trade represents a 20.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Lila Snyder sold 3,339 shares of the company's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $117.18, for a total value of $391,264.02. Following the completion of the sale, the director owned 3,540 shares of the company's stock, valued at approximately $414,817.20. The trade was a 48.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.75% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On PulteGroup

A number of hedge funds have recently modified their holdings of the business. Cedar Mountain Advisors LLC boosted its stake in PulteGroup by 1,650.0% during the first quarter. Cedar Mountain Advisors LLC now owns 210 shares of the construction company's stock worth $25,000 after buying an additional 198 shares during the period. NFSG Corp acquired a new stake in PulteGroup in the 1st quarter valued at approximately $29,000. Rachor Investment Advisory Services LLC purchased a new stake in PulteGroup in the fourth quarter valued at approximately $31,000. HHM Wealth Advisors LLC raised its position in PulteGroup by 158.5% in the first quarter. HHM Wealth Advisors LLC now owns 274 shares of the construction company's stock valued at $32,000 after purchasing an additional 168 shares during the period. Finally, DV Equities LLC acquired a new position in PulteGroup during the fourth quarter worth $32,000. 89.90% of the stock is currently owned by hedge funds and other institutional investors.

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.

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