Franklin Resources Inc. Raises Stake in PulteGroup, Inc. $PHM

Franklin Resources Inc. raised its stake in PulteGroup, Inc. (NYSE:PHM) by 5.1% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 13,555,304 shares of the construction company’s stock after buying an additional 655,033 shares during the quarter. Franklin Resources Inc. owned approximately 7.05% of PulteGroup worth $1,589,495,000 at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in the stock. Norges Bank purchased a new stake in PulteGroup in the 4th quarter valued at $466,653,000. First Trust Advisors LP grew its holdings in PulteGroup by 13.3% in the 3rd quarter. First Trust Advisors LP now owns 3,623,917 shares of the construction company’s stock valued at $478,828,000 after buying an additional 424,011 shares in the last quarter. Bank of America Corp DE grew its holdings in PulteGroup by 13.1% in the 2nd quarter. Bank of America Corp DE now owns 1,755,241 shares of the construction company’s stock valued at $185,108,000 after buying an additional 202,870 shares in the last quarter. American Century Companies Inc. grew its holdings in PulteGroup by 120.4% in the 3rd quarter. American Century Companies Inc. now owns 1,703,049 shares of the construction company’s stock valued at $225,024,000 after buying an additional 930,287 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its holdings in PulteGroup by 8.0% in the 4th quarter. Bank of New York Mellon Corp now owns 1,570,139 shares of the construction company’s stock valued at $184,115,000 after buying an additional 116,736 shares in the last quarter. 89.90% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at PulteGroup

In related news, COO Matthew William Koart sold 7,457 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $120.00, for a total transaction of $894,840.00. Following the completion of the transaction, the chief operating officer directly owned 28,100 shares in the company, valued at $3,372,000. This trade represents a 20.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Lila Snyder sold 3,339 shares of the firm’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $117.18, for a total value of $391,264.02. Following the transaction, the director owned 3,540 shares of the company’s stock, valued at $414,817.20. This trade represents a 48.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.75% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. Citigroup increased their price target on PulteGroup from $136.00 to $138.00 and gave the stock a “neutral” rating in a report on Friday, April 24th. Zacks Research upgraded PulteGroup from a “strong sell” rating to a “hold” rating in a report on Monday, April 13th. Bank of America lowered their price target on PulteGroup from $145.00 to $140.00 and set a “buy” rating for the company in a report on Monday, April 20th. Evercore increased their price target on PulteGroup from $146.00 to $151.00 and gave the stock an “outperform” rating in a report on Friday, April 24th. Finally, Barclays lowered their price target on PulteGroup from $115.00 to $112.00 and set an “equal weight” rating for the company in a report on Wednesday, April 8th. Ten equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $140.71.

PulteGroup Stock Performance

Shares of PulteGroup stock opened at $118.58 on Monday. The business has a 50-day moving average of $119.08 and a 200 day moving average of $124.03. PulteGroup, Inc. has a 12 month low of $98.27 and a 12 month high of $144.49. The stock has a market capitalization of $22.59 billion, a price-to-earnings ratio of 11.47, a price-to-earnings-growth ratio of 1.50 and a beta of 1.20. The company has a debt-to-equity ratio of 0.14, a current ratio of 0.94 and a quick ratio of 0.94.

PulteGroup (NYSE:PHM) last announced its earnings results on Thursday, April 23rd. The construction company reported $1.79 EPS for the quarter, missing analysts’ consensus estimates of $1.80 by ($0.01). PulteGroup had a net margin of 12.14% and a return on equity of 16.41%. The firm had revenue of $3.41 billion for the quarter, compared to analysts’ expectations of $3.40 billion. During the same quarter last year, the business earned $2.57 earnings per share. The business’s revenue was down 12.4% compared to the same quarter last year. As a group, sell-side analysts forecast that PulteGroup, Inc. will post 10 earnings per share for the current year.

PulteGroup declared that its Board of Directors has approved a share repurchase plan on Thursday, April 23rd that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the construction company to repurchase up to 6.1% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

PulteGroup Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Tuesday, June 16th will be issued a dividend of $0.26 per share. This represents a $1.04 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Tuesday, June 16th. PulteGroup’s dividend payout ratio (DPR) is 10.06%.

PulteGroup Company Profile

PulteGroup, Inc (NYSE: PHM) is a U.S.-based residential homebuilder that designs, constructs and sells single-family homes and develops master-planned communities. The company operates multiple national and regional brands that target different buyer segments, including first-time buyers, move-up buyers and active-adult customers. Its operations encompass land acquisition and development, home design and construction, community amenities and ongoing customer service and warranty programs.

PulteGroup markets homes under several well-known brands, such as Pulte Homes, Centex and Del Webb, among others, offering a range of product types from entry-level detached homes to larger, higher-end residences and age-restricted active-adult communities.