Recent Investment Analysts’ Ratings Changes for PulteGroup (PHM)

A number of firms have modified their ratings and price targets on shares of PulteGroup (NYSE: PHM) recently:

  • 2/2/2018 – PulteGroup was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “PulteGroup’s fourth-quarter earnings surpassed the Zacks Consensus Estimate by 1.2% while revenues met the same. Quarterly earnings reflect a solid 27% jump driven by higher demand, courtesy of positive U.S. housing market dynamics backed by an improving economy and job market. Revenues increased 12.1% year over year on a rise in the number of homes delivered. While revenues from the homebuilding segment increased 12.3%, the same from the Financial Services segment was up 3.7% year over year. Home closings increased across all operating regions of the company, barring Northeast and Midwest. Notably, shares of PulteGroup outperformed its industry in the past six months. Also, earnings estimates for the first quarter and 2018 moved up in the last 30 days, indicating analysts are optimistic about the stock’s prospects in the near term. However, rising labor, land and material costs are hurting margins, decreasing 110 basis points in 2017.”
  • 1/31/2018 – PulteGroup had its “hold” rating reaffirmed by analysts at B. Riley. They now have a $36.00 price target on the stock.
  • 1/31/2018 – PulteGroup was upgraded by analysts at Credit Suisse Group AG to a “buy” rating. They now have a $38.00 price target on the stock.
  • 1/22/2018 – PulteGroup had its “outperform” rating reaffirmed by analysts at Credit Suisse Group AG. They now have a $38.00 price target on the stock, up previously from $32.00. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 1/18/2018 – PulteGroup was upgraded by analysts at Mizuho from a “neutral” rating to a “buy” rating.
  • 1/17/2018 – PulteGroup had its price target raised by analysts at UBS Group AG from $38.00 to $41.00. They now have a “buy” rating on the stock.
  • 1/4/2018 – PulteGroup was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. They now have a $40.00 price target on the stock. According to Zacks, “Shares of PulteGroup have gained 81% in the last one year, outperforming the industry. This price performance is backed by impressive earnings surprise history, surpassing the Zacks Consensus Estimate for earnings in all of the past four quarters. PulteGroup will continue to benefit from its value-creation strategy as it focuses on generating solid returns, with balanced approach across its portfolio and capital allocation plans. Prudent land investments, new value creation initiatives and solid cash position bode well. Continued favorable trends in the economy, job growth, demographics and consumer confidence can more than offset the impact of modestly higher rates, allowing the housing recovery to continue at a steady pace. However, labor shortages and gross margin compression due to rising land, labor and material costs might keep the housing momentum in check.”
  • 1/3/2018 – PulteGroup was downgraded by analysts at B. Riley from a “buy” rating to a “neutral” rating. They now have a $36.00 price target on the stock, up previously from $31.00.
  • 12/31/2017 – PulteGroup was upgraded by analysts at ValuEngine from a “buy” rating to a “strong-buy” rating.
  • 12/29/2017 – PulteGroup had its price target raised by analysts at Wedbush from $27.00 to $35.00. They now have a “neutral” rating on the stock.
  • 12/27/2017 – PulteGroup was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Although shares of PulteGroup have gained 82.6% year to date, outperforming the industry, earnings estimates for current-quarter and year decreased 2.3% and 1.5% respectively over the last 60 days. This indicates that analysts have some apprehensions about the stock in the future. Rising labor, land and material costs are threatening margins as they limit homebuilders’ pricing power. This is denting homebuilders’ margins. Home sales’ gross margin decreased 80 basis points year over year to 23.9% in the third quarter of 2017. However, prudent land investments, new value creation initiatives and solid cash position bode well. Also, positive U.S. housing market dynamics, improving economy and jobs market, historically low interest rates and growing demand among first-time buyers add to the momentum.”

PulteGroup, Inc. (NYSE PHM) traded up $0.48 during trading hours on Monday, reaching $29.18. The company’s stock had a trading volume of 6,650,000 shares, compared to its average volume of 5,170,000. PulteGroup, Inc. has a one year low of $21.13 and a one year high of $35.21. The firm has a market capitalization of $8,580.00, a PE ratio of 19.85, a price-to-earnings-growth ratio of 0.45 and a beta of 1.03.

PulteGroup (NYSE:PHM) last released its quarterly earnings results on Tuesday, January 30th. The construction company reported $0.85 EPS for the quarter, hitting analysts’ consensus estimates of $0.85. PulteGroup had a return on equity of 15.52% and a net margin of 5.22%. The company had revenue of $2.79 billion for the quarter, compared to analysts’ expectations of $2.82 billion. During the same period in the prior year, the firm earned $0.67 earnings per share. The firm’s revenue was up 12.1% compared to the same quarter last year. equities research analysts predict that PulteGroup, Inc. will post 3.11 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 3rd. Shareholders of record on Friday, March 16th will be paid a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a yield of 1.23%. The ex-dividend date is Thursday, March 15th. PulteGroup’s dividend payout ratio (DPR) is 24.49%.

In other news, insider James R. Ellinghausen sold 67,490 shares of the stock in a transaction on Monday, November 20th. The stock was sold at an average price of $32.35, for a total value of $2,183,301.50. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Robert Oshaughnessy sold 92,800 shares of the stock in a transaction on Friday, December 8th. The shares were sold at an average price of $33.89, for a total value of $3,144,992.00. Following the completion of the sale, the chief financial officer now owns 363,722 shares in the company, valued at $12,326,538.58. The disclosure for this sale can be found here. 0.71% of the stock is owned by corporate insiders.

PulteGroup, Inc is a homebuilder in the United States. The Company’s segments include Homebuilding and Financial Services. Its Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land.

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