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

PulteGroup, Inc. (NYSE:PHM) was the recipient of unusually large options trading activity on Wednesday. Traders acquired 9,941 call options on the company. This is an increase of approximately 1,498% compared to the average volume of 622 call options.

PulteGroup Price Performance

NYSE PHM traded down $2.84 during trading hours on Thursday, hitting $129.34. The company had a trading volume of 481,527 shares, compared to its average volume of 1,830,813. The firm has a 50 day simple moving average of $130.22 and a 200 day simple moving average of $127.72. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.01 and a current ratio of 1.01. The firm has a market capitalization of $24.88 billion, a price-to-earnings ratio of 11.63, a PEG ratio of 1.54 and a beta of 1.32. PulteGroup has a 52 week low of $88.07 and a 52 week high of $144.49.

PulteGroup Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Tuesday, March 17th will be given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Tuesday, March 17th. PulteGroup’s dividend payout ratio (DPR) is 9.35%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on PHM shares. Wall Street Zen upgraded PulteGroup from a “sell” rating to a “hold” rating in a research report on Sunday, January 11th. JPMorgan Chase & Co. lowered their target price on PulteGroup from $149.00 to $131.00 and set an “overweight” rating on the stock in a research report on Tuesday, February 3rd. Evercore lifted their price target on PulteGroup from $134.00 to $143.00 in a research note on Friday, January 30th. Weiss Ratings upgraded shares of PulteGroup from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, January 12th. Finally, Wells Fargo & Company raised their target price on PulteGroup from $132.00 to $150.00 and gave the company an “overweight” rating in a research report on Wednesday, January 14th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $142.71.

Insider Activity at PulteGroup

In other news, EVP Kevin A. Henry sold 5,173 shares of the business’s stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $141.03, for a total transaction of $729,548.19. Following the sale, the executive vice president directly owned 14,673 shares in the company, valued at approximately $2,069,333.19. The trade was a 26.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Brien P. O’meara sold 4,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $135.51, for a total transaction of $542,040.00. Following the completion of the transaction, the vice president owned 8,601 shares of the company’s stock, valued at approximately $1,165,521.51. This trade represents a 31.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 149,952 shares of company stock valued at $20,162,165. 0.76% of the stock is owned by company insiders.

Hedge Funds Weigh In On PulteGroup

A number of hedge funds and other institutional investors have recently modified their holdings of PHM. Rachor Investment Advisory Services LLC bought a new stake in PulteGroup in the 4th quarter worth approximately $31,000. Private Wealth Management Group LLC raised its stake in shares of PulteGroup by 281.7% during the third quarter. Private Wealth Management Group LLC now owns 271 shares of the construction company’s stock worth $36,000 after acquiring an additional 200 shares in the last quarter. DV Equities LLC bought a new stake in shares of PulteGroup in the 4th quarter worth approximately $32,000. Lloyd Advisory Services LLC. purchased a new stake in shares of PulteGroup in the 4th quarter valued at $33,000. Finally, Twin Peaks Wealth Advisors LLC purchased a new stake in shares of PulteGroup in the 2nd quarter valued at $32,000. 89.90% of the stock is currently owned by hedge funds and other institutional investors.

About PulteGroup

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.