PulteGroup (NYSE:PHM) Shares Gap Down - Here's Why

PulteGroup, Inc. (NYSE:PHM - Get Free Report) shares gapped down before the market opened 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 equities analysts have commented on the stock. Wells Fargo & Company decreased their target price on shares of PulteGroup from $165.00 to $140.00 and set an "overweight" rating on the stock in a report on Tuesday. UBS Group upped their target price on PulteGroup from $148.00 to $154.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 23rd. StockNews.com lowered PulteGroup from a "buy" rating to a "hold" rating in a research note on Wednesday, December 11th. Wedbush restated a "neutral" rating and set a $115.00 price objective on shares of PulteGroup in a research report on Tuesday, October 22nd. Finally, Oppenheimer decreased their target price on PulteGroup from $168.00 to $165.00 and set an "outperform" rating on the stock in a research report on Wednesday, October 23rd. Eight analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $142.71.

PulteGroup Stock Performance

The company has a market capitalization of $22.33 billion, a P/E ratio of 8.03, a price-to-earnings-growth ratio of 0.48 and a beta of 1.62. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.73 and a current ratio of 0.73. The stock's 50 day moving average price is $131.58 and its 200 day moving average price is $127.23.

PulteGroup (NYSE:PHM - Get Free Report) last announced its earnings results on Tuesday, October 22nd. The construction company reported $3.35 EPS for the quarter, beating the consensus estimate of $3.10 by $0.25. PulteGroup had a return on equity of 25.30% and a net margin of 16.64%. The company had revenue of $4.48 billion for the quarter, compared to analyst estimates of $4.27 billion. During the same quarter in the prior year, the company earned $2.90 EPS. The firm's revenue for the quarter was up 11.8% compared to the same quarter last year. As a group, equities analysts expect that PulteGroup, Inc. will post 12.94 EPS for the current year.

PulteGroup Increases Dividend

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

Institutional Trading of PulteGroup

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Logan Capital Management Inc. grew its stake in shares of PulteGroup by 67.7% during the 3rd quarter. Logan Capital Management Inc. now owns 14,797 shares of the construction company's stock worth $2,124,000 after acquiring an additional 5,976 shares during the period. Sanctuary Advisors LLC lifted its position in shares of PulteGroup by 38.1% during the third quarter. Sanctuary Advisors LLC now owns 121,299 shares of the construction company's stock worth $17,410,000 after acquiring an additional 33,472 shares in the last quarter. Trustmark National Bank Trust Department boosted its holdings in shares of PulteGroup by 39.8% in the third quarter. Trustmark National Bank Trust Department now owns 39,589 shares of the construction company's stock worth $5,682,000 after acquiring an additional 11,269 shares during the period. New Millennium Group LLC boosted its stake in PulteGroup by 10,625.8% in the 3rd quarter. New Millennium Group LLC now owns 9,546 shares of the construction company's stock worth $1,370,000 after purchasing an additional 9,457 shares during the period. Finally, Systematic Financial Management LP boosted its position in shares of PulteGroup by 3.9% in the third quarter. Systematic Financial Management LP now owns 130,257 shares of the construction company's stock valued at $18,696,000 after acquiring an additional 4,840 shares during the period. 89.90% of the stock is owned by 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.