PulteGroup (NYSE:PHM) Reaches New 52-Week Low – Should You Sell?

PulteGroup, Inc. (NYSE:PHM)’s stock price hit a new 52-week low on Friday . The company traded as low as $100.35 and last traded at $102.91, with a volume of 1037045 shares traded. The stock had previously closed at $105.34.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on PHM shares. JPMorgan Chase & Co. decreased their price target on shares of PulteGroup from $162.00 to $155.00 and set an “overweight” rating for the company in a research note on Friday, December 13th. Bank of America decreased their price target on shares of PulteGroup from $135.00 to $134.00 and set a “buy” rating for the company in a research note on Monday, January 27th. UBS Group increased their price target on shares of PulteGroup from $148.00 to $151.00 and gave the stock a “buy” rating in a research note on Friday, January 31st. Wedbush reiterated an “outperform” rating and set a $135.00 price target on shares of PulteGroup in a research note on Friday, January 31st. Finally, The Goldman Sachs Group decreased their price target on shares of PulteGroup from $140.00 to $124.00 and set a “neutral” rating for the company in a research note on Tuesday, January 14th. Seven equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $140.86.

PulteGroup Price Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 0.86 and a quick ratio of 0.86. The company’s 50 day moving average is $108.54 and its 200 day moving average is $122.21. The stock has a market cap of $20.86 billion, a price-to-earnings ratio of 7.00, a PEG ratio of 0.29 and a beta of 1.71.

PulteGroup (NYSE:PHM) last announced its quarterly earnings data on Thursday, January 30th. The construction company reported $3.50 EPS 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%. Research analysts forecast that PulteGroup, Inc. will post 12.32 earnings per share for the current fiscal year.

PulteGroup Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 2nd. Investors of record on Tuesday, March 18th will be paid a $0.22 dividend. This represents a $0.88 annualized dividend and a dividend yield of 0.85%. The ex-dividend date of this dividend is Tuesday, March 18th. PulteGroup’s dividend payout ratio (DPR) is 5.98%.

PulteGroup announced that its Board of Directors has approved a stock buyback plan on Thursday, January 30th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the construction company to reacquire up to 6.2% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Activity at PulteGroup

In other PulteGroup news, Director Brian P. Anderson sold 2,500 shares of the firm’s stock in a transaction dated Monday, February 10th. The shares were sold at an average price of $106.45, for a total transaction of $266,125.00. Following the completion of the transaction, the director now directly owns 56,617 shares in the company, valued at approximately $6,026,879.65. This trade represents a 4.23 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Brien P. O’meara sold 3,500 shares of the firm’s stock in a transaction dated Thursday, February 13th. The shares were sold at an average price of $106.40, for a total transaction of $372,400.00. Following the transaction, the vice president now owns 11,372 shares of the company’s stock, valued at $1,209,980.80. This trade represents a 23.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 21,191 shares of company stock worth $2,256,367 over the last 90 days. Company insiders own 0.83% of the company’s stock.

Hedge Funds Weigh In On PulteGroup

Several hedge funds have recently added to or reduced their stakes in PHM. Thrivent Financial for Lutherans grew its holdings in shares of PulteGroup by 6.3% during the third quarter. Thrivent Financial for Lutherans now owns 19,524 shares of the construction company’s stock worth $2,803,000 after buying an additional 1,160 shares in the last quarter. B. Metzler seel. Sohn & Co. Holding AG purchased a new stake in shares of PulteGroup during the third quarter worth about $788,000. PNC Financial Services Group Inc. grew its holdings in shares of PulteGroup by 6.1% during the third quarter. PNC Financial Services Group Inc. now owns 36,152 shares of the construction company’s stock worth $5,189,000 after buying an additional 2,067 shares in the last quarter. Commerce Bank grew its holdings in shares of PulteGroup by 4.5% during the third quarter. Commerce Bank now owns 25,687 shares of the construction company’s stock worth $3,687,000 after buying an additional 1,116 shares in the last quarter. Finally, Advisors Asset Management Inc. grew its holdings in shares of PulteGroup by 29.1% during the third quarter. Advisors Asset Management Inc. now owns 4,660 shares of the construction company’s stock worth $669,000 after buying an additional 1,050 shares in the last quarter. 89.90% of the stock is currently owned by hedge funds and other institutional investors.

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.