PulteGroup Target of Unusually High Options Trading (NYSE:PHM)

Key Points

• Unusual options activity: PulteGroup saw a surge in bullish options trading, with 9,941 call options bought on Wednesday, about 1,498% above the average daily volume.
• Insider and institutional moves: Director Lila Snyder and EVP Kevin A. Henry both sold shares recently, while hedge funds and other institutional investors still own nearly 90% of the company.
• Mixed fundamentals and outlook: PulteGroup missed quarterly EPS estimates by a penny, but revenue slightly topped forecasts; analysts still have a Moderate Buy consensus with an average price target of $140.71, and the company also announced a quarterly dividend and a $1.5 billion buyback program.

PulteGroup, Inc. (NYSE:PHM - Get Free Report) was the target of some unusual options trading activity on Wednesday. Traders bought 9,941 call options on the stock. This is an increase of approximately 1,498% compared to the average daily volume of 622 call options.

Insider Activity at PulteGroup

In other news, Director Lila Snyder sold 3,339 shares of the firm's stock in a transaction that occurred 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 transaction, the director owned 3,540 shares of the company's stock, valued at approximately $414,817.20. This trade represents a 48.54% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Kevin A. Henry sold 5,173 shares of the firm'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 of the company's stock, valued at approximately $2,069,333.19. The trade was a 26.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.75% of the company's stock.

Institutional Trading of PulteGroup

Several institutional investors have recently modified their holdings of the stock. Sei Investments Co. lifted its position in shares of PulteGroup by 8.1% during the 1st quarter. Sei Investments Co. now owns 148,329 shares of the construction company's stock worth $17,446,000 after buying an additional 11,144 shares during the last quarter. Lido Advisors LLC increased its holdings in shares of PulteGroup by 17.8% in the 1st quarter. Lido Advisors LLC now owns 5,322 shares of the construction company's stock valued at $627,000 after acquiring an additional 805 shares during the period. State of Wyoming increased its holdings in shares of PulteGroup by 48.8% in the 1st quarter. State of Wyoming now owns 3,293 shares of the construction company's stock valued at $387,000 after acquiring an additional 1,080 shares during the period. Cetera Investment Advisers increased its holdings in shares of PulteGroup by 2.4% in the 1st quarter. Cetera Investment Advisers now owns 107,776 shares of the construction company's stock valued at $12,676,000 after acquiring an additional 2,523 shares during the period. Finally, First Trust Advisors LP increased its holdings in shares of PulteGroup by 7.8% in the 1st quarter. First Trust Advisors LP now owns 4,314,501 shares of the construction company's stock valued at $507,428,000 after acquiring an additional 313,581 shares during the period. Hedge funds and other institutional investors own 89.90% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently commented on PHM shares. Truist Financial lowered their price objective on shares of PulteGroup from $170.00 to $150.00 and set a "buy" rating for the company in a research note on Thursday, April 16th. Oppenheimer reissued an "outperform" rating and issued a $149.00 price objective (up from $140.00) on shares of PulteGroup in a research note on Friday, January 30th. Citigroup raised their price objective on shares of PulteGroup from $136.00 to $138.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Wells Fargo & Company lifted their price target on shares of PulteGroup from $132.00 to $140.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Finally, Bank of America decreased their price target on shares of PulteGroup from $145.00 to $140.00 and set a "buy" rating for the company in a research note on Monday, April 20th. Ten investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $140.71.

PulteGroup Stock Down 1.3%

Shares of NYSE:PHM opened at $113.04 on Thursday. The company has a market capitalization of $21.53 billion, a PE ratio of 10.93, a P/E/G ratio of 1.45 and a beta of 1.23. 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 has a twelve month low of $95.20 and a twelve month high of $144.49. The firm has a 50 day simple moving average of $121.24 and a 200-day simple moving average of $124.40.

PulteGroup (NYSE:PHM - Get Free Report) last issued 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). The company had revenue of $3.41 billion for the quarter, compared to analysts' expectations of $3.40 billion. PulteGroup had a return on equity of 16.41% and a net margin of 12.14%.The firm's quarterly revenue was down 12.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.57 EPS. On average, equities analysts predict that PulteGroup will post 10 EPS for the current fiscal year.

PulteGroup Dividend Announcement

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

PulteGroup announced that its Board of Directors has authorized a stock repurchase program on Thursday, April 23rd that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the construction company to buy up to 6.1% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's management believes its shares are undervalued.

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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