PulteGroup (NYSE:PHM) Shares Gap Down - Should You Sell?

PulteGroup, Inc. (NYSE:PHM - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $144.26, but opened at $138.58. PulteGroup shares last traded at $137.26, with a volume of 651,325 shares changing hands.

Analyst Ratings Changes

Several equities analysts have weighed in on PHM shares. Wolfe Research downgraded PulteGroup from an "outperform" rating to a "peer perform" rating in a research report on Wednesday, August 14th. Oppenheimer lifted their target price on PulteGroup from $151.00 to $168.00 and gave the company an "outperform" rating in a research report on Wednesday, October 2nd. Royal Bank of Canada lifted their target price on PulteGroup from $113.00 to $120.00 and gave the company a "sector perform" rating in a research report on Wednesday, July 24th. Barclays lifted their target price on PulteGroup from $131.00 to $150.00 and gave the company an "overweight" rating in a research report on Wednesday, July 24th. Finally, BTIG Research lifted their target price on PulteGroup from $133.00 to $139.00 and gave the company a "buy" rating in a research report on Wednesday, July 24th. Six analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company's stock. According to data from MarketBeat.com, PulteGroup has an average rating of "Moderate Buy" and a consensus price target of $141.14.

PulteGroup Price Performance

The stock has a fifty day moving average of $136.45 and a 200-day moving average of $122.87. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $27.76 billion, a price-to-earnings ratio of 10.20, a P/E/G ratio of 0.61 and a beta of 1.62.

PulteGroup (NYSE:PHM - Get Free Report) last announced its quarterly earnings results on Tuesday, July 23rd. The construction company reported $3.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.27 by $0.56. The firm had revenue of $4.60 billion during the quarter, compared to the consensus estimate of $4.49 billion. PulteGroup had a return on equity of 25.67% and a net margin of 16.75%. The firm's quarterly revenue was up 9.8% compared to the same quarter last year. During the same period in the prior year, the company posted $3.00 earnings per share. On average, equities research analysts predict that PulteGroup, Inc. will post 12.9 EPS for the current fiscal year.

PulteGroup Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 2nd. Investors of record on Tuesday, September 17th were issued a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 0.60%. The ex-dividend date was Tuesday, September 17th. PulteGroup's dividend payout ratio (DPR) is 6.10%.

Insider Activity at PulteGroup

In related news, CFO Robert Oshaughnessy sold 28,993 shares of the company's stock in a transaction that occurred on Thursday, August 1st. The stock was sold at an average price of $129.29, for a total value of $3,748,504.97. Following the completion of the transaction, the chief financial officer now directly owns 160,330 shares of the company's stock, valued at $20,729,065.70. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. In other PulteGroup news, Director Thomas J. Folliard sold 19,000 shares of the business's stock in a transaction that occurred on Wednesday, August 28th. The stock was sold at an average price of $131.14, for a total value of $2,491,660.00. Following the completion of the sale, the director now owns 45,230 shares in the company, valued at approximately $5,931,462.20. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Robert Oshaughnessy sold 28,993 shares of the business's stock in a transaction that occurred on Thursday, August 1st. The shares were sold at an average price of $129.29, for a total value of $3,748,504.97. Following the completion of the sale, the chief financial officer now owns 160,330 shares of the company's stock, valued at approximately $20,729,065.70. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 119,000 shares of company stock valued at $15,814,039 over the last three months. 0.83% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On PulteGroup

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PHM. International Assets Investment Management LLC purchased a new stake in shares of PulteGroup during the third quarter worth approximately $7,598,000. Axecap Investments LLC purchased a new stake in shares of PulteGroup during the third quarter worth approximately $2,975,000. Private Advisor Group LLC raised its stake in shares of PulteGroup by 9.2% during the third quarter. Private Advisor Group LLC now owns 10,943 shares of the construction company's stock worth $1,571,000 after purchasing an additional 924 shares during the last quarter. Segment Wealth Management LLC purchased a new stake in shares of PulteGroup during the third quarter worth approximately $12,673,000. Finally, Eastern Bank raised its stake in shares of PulteGroup by 1.1% during the third quarter. Eastern Bank now owns 136,497 shares of the construction company's stock worth $19,591,000 after purchasing an additional 1,551 shares during the last quarter. Hedge funds and other institutional investors own 89.90% of the company's stock.

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.