Traders Buy Large Volume of Call Options on PulteGroup (NYSE:PHM)

PulteGroup, Inc. (NYSE:PHM - Get Free Report) was the target of unusually large options trading activity on Wednesday. Stock investors acquired 9,941 call options on the stock. This represents an increase of approximately 1,498% compared to the average daily volume of 622 call options.

Insider Transactions at PulteGroup

In related news, VP Brien P. O'meara sold 3,500 shares of the firm's stock in a transaction that occurred on Thursday, February 13th. The stock was 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 in the company, valued at $1,209,980.80. This trade represents a 23.53 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Brian P. Anderson sold 2,500 shares of PulteGroup stock in a transaction that occurred on Monday, February 10th. The stock was sold at an average price of $106.45, for a total value of $266,125.00. Following 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 disclosure for this sale can be found here. In the last quarter, insiders sold 21,191 shares of company stock worth $2,256,367. 0.76% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank purchased a new position in PulteGroup during the 4th quarter valued at about $427,562,000. Amundi grew its position in shares of PulteGroup by 77.9% in the fourth quarter. Amundi now owns 1,636,562 shares of the construction company's stock valued at $180,775,000 after purchasing an additional 716,716 shares during the last quarter. Franklin Resources Inc. increased its stake in shares of PulteGroup by 6.1% during the 4th quarter. Franklin Resources Inc. now owns 11,937,866 shares of the construction company's stock worth $1,300,034,000 after purchasing an additional 683,592 shares in the last quarter. Man Group plc raised its position in shares of PulteGroup by 136.8% during the 4th quarter. Man Group plc now owns 988,963 shares of the construction company's stock worth $107,698,000 after purchasing an additional 571,251 shares during the last quarter. Finally, Voloridge Investment Management LLC purchased a new stake in PulteGroup in the 4th quarter valued at approximately $47,133,000. Institutional investors and hedge funds own 89.90% of the company's stock.

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PulteGroup Price Performance

Shares of NYSE:PHM traded down $5.21 on Monday, reaching $96.03. 3,507,876 shares of the company were exchanged, compared to its average volume of 1,970,675. The company has a current ratio of 0.86, a quick ratio of 0.86 and a debt-to-equity ratio of 0.13. PulteGroup has a 1-year low of $95.14 and a 1-year high of $149.47. The company has a 50-day moving average of $105.68 and a 200-day moving average of $119.58. The firm has a market cap of $19.44 billion, a price-to-earnings ratio of 6.53, a price-to-earnings-growth ratio of 0.29 and a beta of 1.44.

PulteGroup (NYSE:PHM - Get Free Report) last issued its earnings results on Thursday, January 30th. The construction company reported $3.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.28 by $0.22. PulteGroup had a net margin of 17.18% and a return on equity of 24.43%. Equities analysts forecast that PulteGroup will post 12.32 earnings per share for the current fiscal year.

PulteGroup Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 2nd. Shareholders of record on Tuesday, March 18th were given a dividend of $0.22 per share. The ex-dividend date was Tuesday, March 18th. This represents a $0.88 dividend on an annualized basis and a yield of 0.92%. PulteGroup's payout ratio is 5.98%.

PulteGroup declared that its Board of Directors has authorized a share repurchase plan on Thursday, January 30th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the construction company to reacquire up to 6.2% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on PHM. The Goldman Sachs Group cut their target price on shares of PulteGroup from $140.00 to $124.00 and set a "neutral" rating on the stock in a report on Tuesday, January 14th. JPMorgan Chase & Co. reduced their target price on shares of PulteGroup from $162.00 to $155.00 and set an "overweight" rating for the company in a report on Friday, December 13th. Wells Fargo & Company decreased their target price on shares of PulteGroup from $165.00 to $140.00 and set an "overweight" rating for the company in a research note on Tuesday, December 17th. StockNews.com cut PulteGroup from a "buy" rating to a "hold" rating in a research report on Wednesday, December 11th. Finally, Barclays lowered their target price on PulteGroup from $125.00 to $117.00 and set an "equal weight" rating on the stock in a research note on Friday, January 31st. Seven investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $140.86.

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.