PulteGroup (NYSE:PHM) Shares Gap Down – What’s Next?

Shares of PulteGroup, Inc. (NYSE:PHM) gapped down prior to trading on Thursday . The stock had previously closed at $111.29, but opened at $107.90. PulteGroup shares last traded at $110.10, with a volume of 523,910 shares.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on PHM. Barclays reiterated an “equal weight” rating and set a $140.00 price target (down previously from $150.00) on shares of PulteGroup in a report on Wednesday, December 11th. Evercore ISI lowered their target price on shares of PulteGroup from $198.00 to $195.00 and set an “outperform” rating for the company in a report on Wednesday, October 23rd. StockNews.com cut shares of PulteGroup from a “buy” rating to a “hold” rating in a report on Wednesday, December 11th. Wedbush restated a “neutral” rating and set a $115.00 price target on shares of PulteGroup in a research report on Tuesday, October 22nd. Finally, UBS Group lifted their price objective on PulteGroup from $148.00 to $154.00 and gave the stock a “neutral” rating in a report on Wednesday, October 23rd. Eight investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat.com, PulteGroup presently has an average rating of “Moderate Buy” and an average target price of $142.71.

PulteGroup Price Performance

The stock has a market capitalization of $22.40 billion, a PE ratio of 8.06, a PEG ratio of 0.48 and a beta of 1.62. The company has a current ratio of 0.73, a quick ratio of 0.73 and a debt-to-equity ratio of 0.14. The firm’s 50-day moving average price is $131.58 and its 200-day moving average price is $127.23.

PulteGroup (NYSE:PHM) last issued its earnings results on Tuesday, October 22nd. The construction company reported $3.35 EPS for the quarter, topping analysts’ consensus estimates of $3.10 by $0.25. PulteGroup had a net margin of 16.64% and a return on equity of 25.30%. The business had revenue of $4.48 billion for the quarter, compared to the consensus estimate of $4.27 billion. During the same period in the prior year, the firm earned $2.90 EPS. The company’s revenue for the quarter was up 11.8% compared to the same quarter last year. On average, equities analysts forecast that PulteGroup, Inc. will post 12.94 EPS for the current fiscal year.

PulteGroup Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 3rd. Shareholders of record on Tuesday, December 17th will be given a dividend of $0.22 per share. The ex-dividend date is Tuesday, December 17th. This is a positive change from PulteGroup’s previous quarterly dividend of $0.20. This represents a $0.88 dividend on an annualized basis and a yield of 0.81%. PulteGroup’s payout ratio is 6.49%.

Hedge Funds Weigh In On PulteGroup

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Lord Abbett & CO. LLC lifted its stake in PulteGroup by 3,118.4% in the third quarter. Lord Abbett & CO. LLC now owns 376,717 shares of the construction company’s stock worth $54,070,000 after acquiring an additional 365,012 shares during the period. Logan Capital Management Inc. boosted its stake in shares of PulteGroup by 67.7% during the third quarter. Logan Capital Management Inc. now owns 14,797 shares of the construction company’s stock valued at $2,124,000 after purchasing an additional 5,976 shares in the last quarter. Oddo BHF Asset Management Sas purchased a new position in PulteGroup during the third quarter valued at approximately $2,973,000. Franklin Resources Inc. lifted its holdings in PulteGroup by 5.5% during the third quarter. Franklin Resources Inc. now owns 11,254,274 shares of the construction company’s stock worth $1,647,364,000 after buying an additional 585,735 shares during the period. Finally, Peapack Gladstone Financial Corp lifted its stake in shares of PulteGroup by 50.9% during the 3rd quarter. Peapack Gladstone Financial Corp now owns 5,336 shares of the construction company’s stock worth $766,000 after purchasing an additional 1,800 shares during the last quarter. Institutional investors own 89.90% of the company’s stock.

About PulteGroup

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.