PulteGroup Sees Unusually High Options Volume (NYSE:PHM)

Key Points

• Surge in call activity: Traders purchased 9,941 call options on PulteGroup on Wednesday, a 1,498% increase versus the average daily volume of 622 calls, indicating unusually heavy bullish options interest.
• $1.50 billion buyback and dividend: The board authorized a $1.50 billion share repurchase program (about 6.1% of shares) and declared a quarterly dividend of $0.26 per share, reflecting shareholder-return initiatives.
• Insider selling and mixed fundamentals: Insiders sold 149,952 shares over the past 90 days; the company missed quarterly EPS by $0.01 with revenue down 12.4% year-over-year, though analysts maintain a "Moderate Buy" consensus with a $140.71 target.

PulteGroup, Inc. (NYSE:PHM - Get Free Report) was the target of unusually large options trading activity on Wednesday. Stock traders purchased 9,941 call options on the company. This represents an increase of 1,498% compared to the average daily volume of 622 call options.

Insider Buying and Selling at PulteGroup

In related news, EVP Kevin A. Henry sold 5,173 shares of the company's stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $141.03, for a total transaction of $729,548.19. Following the completion of the transaction, 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Todd N. Sheldon sold 14,220 shares of the company's stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $135.01, for a total transaction of $1,919,842.20. Following the transaction, the executive vice president owned 69,753 shares of the company's stock, valued at approximately $9,417,352.53. This represents a 16.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 149,952 shares of company stock worth $20,162,165 over the last 90 days. 0.75% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Franklin Resources Inc. boosted its stake in PulteGroup by 5.1% during the fourth quarter. Franklin Resources Inc. now owns 13,555,304 shares of the construction company's stock worth $1,589,495,000 after acquiring an additional 655,033 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in PulteGroup by 126.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,284,197 shares of the construction company's stock worth $502,366,000 after acquiring an additional 2,392,580 shares in the last quarter. First Trust Advisors LP boosted its stake in PulteGroup by 10.4% during the fourth quarter. First Trust Advisors LP now owns 4,000,920 shares of the construction company's stock worth $469,148,000 after acquiring an additional 377,003 shares in the last quarter. Norges Bank bought a new position in PulteGroup during the fourth quarter worth $466,653,000. Finally, Massachusetts Financial Services Co. MA bought a new position in PulteGroup during the third quarter worth $315,883,000. 89.90% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on PHM. Seaport Research Partners reiterated a "sell" rating and set a $100.00 price objective (down from $155.00) on shares of PulteGroup in a research report on Tuesday, April 7th. Zacks Research upgraded shares of PulteGroup from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. The Goldman Sachs Group upped their price objective 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. JPMorgan Chase & Co. lowered their price objective on shares of PulteGroup from $149.00 to $131.00 and set an "overweight" rating for the company in a research report on Tuesday, February 3rd. Finally, Wells Fargo & Company upped their price target on shares of PulteGroup from $132.00 to $140.00 and gave the company an "overweight" rating in a research 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 stock. According to MarketBeat.com, PulteGroup currently has an average rating of "Moderate Buy" and a consensus target price of $140.71.

PulteGroup Trading Down 3.5%

PHM opened at $120.57 on Thursday. PulteGroup has a twelve month low of $95.20 and a twelve month high of $144.49. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.14. The company has a fifty day moving average of $124.53 and a 200-day moving average of $124.70. The stock has a market cap of $22.97 billion, a PE ratio of 11.66, a price-to-earnings-growth ratio of 1.62 and a beta of 1.33.

PulteGroup (NYSE:PHM - Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The construction company reported $1.79 earnings per share 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 firm had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.40 billion. During the same quarter last year, the company earned $2.57 earnings per share. The company's quarterly revenue was down 12.4% compared to the same quarter last year. On average, sell-side analysts predict that PulteGroup will post 10.06 EPS for the current year.

PulteGroup Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Tuesday, June 16th will be paid a dividend of $0.26 per share. The ex-dividend date of this dividend is Tuesday, June 16th. This represents a $1.04 annualized dividend and a yield of 0.9%. PulteGroup's dividend payout ratio is currently 10.06%.

PulteGroup declared that its Board of Directors has initiated a stock buyback program on Thursday, April 23rd that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the construction company to purchase up to 6.1% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

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.

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.