Meritage Portfolio Management Lowers Stake in PulteGroup, Inc. (NYSE:PHM)

Meritage Portfolio Management cut its position in shares of PulteGroup, Inc. (NYSE:PHM) by 1.1% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 49,034 shares of the construction company’s stock after selling 545 shares during the quarter. Meritage Portfolio Management’s holdings in PulteGroup were worth $5,340,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of PHM. Fortitude Family Office LLC raised its holdings in PulteGroup by 115.1% in the third quarter. Fortitude Family Office LLC now owns 185 shares of the construction company’s stock valued at $27,000 after buying an additional 99 shares during the period. Transcendent Capital Group LLC purchased a new position in shares of PulteGroup in the 3rd quarter valued at $29,000. Hager Investment Management Services LLC acquired a new position in shares of PulteGroup during the 4th quarter valued at $29,000. R Squared Ltd purchased a new stake in PulteGroup during the 4th quarter worth $39,000. Finally, JNBA Financial Advisors acquired a new stake in PulteGroup in the 3rd quarter valued at $43,000. 89.90% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have commented on PHM shares. Evercore ISI reduced their price objective on PulteGroup from $198.00 to $195.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 23rd. Citigroup reduced their price target on PulteGroup from $146.00 to $119.00 and set a “neutral” rating on the stock in a research report on Monday, January 6th. Oppenheimer lowered their price objective on shares of PulteGroup from $165.00 to $150.00 and set an “outperform” rating for the company in a research report on Friday, January 31st. Barclays reduced their target price on shares of PulteGroup from $125.00 to $117.00 and set an “equal weight” rating on the stock in a research report on Friday, January 31st. Finally, Wells Fargo & Company lowered their price target on shares of PulteGroup from $165.00 to $140.00 and set an “overweight” rating for the company in a report on Tuesday, December 17th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and eleven have assigned a buy rating to the company. Based on data from MarketBeat, PulteGroup currently has an average rating of “Moderate Buy” and a consensus target price of $140.86.

PulteGroup Price Performance

Shares of PHM opened at $110.44 on Wednesday. PulteGroup, Inc. has a 52 week low of $100.24 and a 52 week high of $149.47. The company has a current ratio of 0.86, a quick ratio of 0.73 and a debt-to-equity ratio of 0.13. The firm has a market cap of $22.65 billion, a price-to-earnings ratio of 7.51, a PEG ratio of 0.49 and a beta of 1.68. The stock has a 50 day moving average of $116.64 and a 200-day moving average of $127.25.

PulteGroup (NYSE:PHM) last released its earnings results on Thursday, January 30th. The construction company reported $3.50 earnings per share for the quarter, beating the consensus estimate of $3.28 by $0.22. PulteGroup had a net margin of 17.18% and a return on equity of 24.43%. As a group, analysts forecast that PulteGroup, Inc. will post 13.34 EPS for the current year.

PulteGroup announced that its Board of Directors has initiated a stock repurchase program on Thursday, January 30th that authorizes the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization authorizes the construction company to reacquire up to 6.2% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

PulteGroup Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, January 3rd. Shareholders of record on Tuesday, December 17th were paid a $0.22 dividend. This is an increase from PulteGroup’s previous quarterly dividend of $0.20. This represents a $0.88 dividend on an annualized basis and a yield of 0.80%. The ex-dividend date was Tuesday, December 17th. PulteGroup’s payout ratio is presently 5.98%.

PulteGroup Company Profile

PulteGroup, Inc, through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land. The company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brand names.