PulteGroup (NYSE:PHM) Releases Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Key Points

• PulteGroup beat earnings expectations, reporting quarterly EPS of $2.48 versus analysts’ estimate of $2.36. However, that was down from $3.03 per share in the same quarter last year.
• Revenue declined 9.6% year over year in the quarter, even as the company posted a net margin of 12.14% and return on equity of 16.41%.
• The company continues shareholder returns and buybacks, with a quarterly dividend of $0.26 per share and a new $1.5 billion stock repurchase authorization covering up to 6.1% of outstanding shares.

PulteGroup (NYSE:PHM - Get Free Report) released its earnings results on Wednesday. The construction company reported $2.48 earnings per share for the quarter, beating analysts' consensus estimates of $2.36 by $0.12, Briefing.com reports. PulteGroup had a net margin of 12.14% and a return on equity of 16.41%. During the same quarter in the previous year, the business posted $3.03 EPS. The business's quarterly revenue was down 9.6% compared to the same quarter last year.

PulteGroup Stock Performance

PHM stock opened at $124.24 on Wednesday. The company has a market capitalization of $23.67 billion, a P/E ratio of 12.02, a PEG ratio of 1.57 and a beta of 1.18. The business has a 50-day moving average price of $123.27 and a 200 day moving average price of $125.12. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.94 and a quick ratio of 0.94. PulteGroup has a 1-year low of $108.49 and a 1-year high of $144.49.

PulteGroup Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Tuesday, June 16th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Tuesday, June 16th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.8%. PulteGroup's dividend payout ratio is presently 10.06%.

Insiders Place Their Bets

In other news, Director Lila Snyder sold 3,339 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $117.18, for a total transaction of $391,264.02. Following the completion of the sale, the director owned 3,540 shares in the company, valued at approximately $414,817.20. This represents a 48.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Matthew William Koart sold 7,457 shares of the business's stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $120.00, for a total value 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. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.75% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of PHM. Virtu Financial LLC purchased a new stake in shares of PulteGroup during the fourth quarter valued at $323,000. Compound Planning Inc. lifted its position in PulteGroup by 25.4% during the 4th quarter. Compound Planning Inc. now owns 6,395 shares of the construction company's stock worth $750,000 after acquiring an additional 1,296 shares during the period. Invesco Ltd. lifted its position in PulteGroup by 5.8% during the 4th quarter. Invesco Ltd. now owns 2,257,211 shares of the construction company's stock worth $264,681,000 after acquiring an additional 123,793 shares during the period. Axxcess Wealth Management LLC grew its stake in PulteGroup by 7.2% during the 4th quarter. Axxcess Wealth Management LLC now owns 7,405 shares of the construction company's stock valued at $868,000 after purchasing an additional 497 shares during the last quarter. Finally, Corient Private Wealth LLC grew its stake in PulteGroup by 134.7% during the 4th quarter. Corient Private Wealth LLC now owns 292,834 shares of the construction company's stock valued at $34,338,000 after purchasing an additional 168,071 shares during the last quarter. Institutional investors and hedge funds own 89.90% of the company's stock.

PulteGroup declared that its Board of Directors has approved a stock repurchase plan on Thursday, April 23rd that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the construction company to reacquire up to 6.1% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Truist Financial cut their target price on PulteGroup from $170.00 to $150.00 and set a "buy" rating for the company in a research report on Thursday, April 16th. Bank of America reduced their price objective on shares of PulteGroup from $145.00 to $140.00 and set a "buy" rating on the stock in a research report on Monday, April 20th. The Goldman Sachs Group upped their target price on shares of PulteGroup from $133.00 to $142.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. Oppenheimer reaffirmed an "outperform" rating on shares of PulteGroup in a research note on Tuesday, May 26th. Finally, UBS Group increased their price objective on shares of PulteGroup from $159.00 to $162.00 and gave the company a "buy" rating in a report on Friday, April 24th. Ten equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $142.21.

PulteGroup Company Profile

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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