Zacks Investment Research Downgrades PulteGroup, Inc. (PHM) to Hold
PulteGroup, Inc. (NYSE:PHM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “PulteGroup will continue to benefit from its value-creation strategy as it focuses on generating solid returns, with balanced approach across its portfolio and capital allocation plans. Continued favorable trends in the economy, job growth, demographics and consumer confidence can more than offset the impact of modestly higher rates, allowing the housing recovery to continue at a steady pace. Also, shares of PulteGroup outperformed its industry so far this year. However, labor shortages and gross margin compression due to rising labor costs can keep the housing momentum in check. Even so, prudent land investments, new value creation initiatives and solid cash position bode well.”
Several other analysts also recently weighed in on PHM. BidaskClub raised shares of PulteGroup from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, June 14th. Credit Suisse Group started coverage on shares of PulteGroup in a research note on Thursday, June 22nd. They issued an “outperform” rating and a $27.00 price target for the company. Bank of America Corporation reissued a “buy” rating and issued a $30.00 price target (up from $29.00) on shares of PulteGroup in a research note on Tuesday, June 27th. Mizuho downgraded shares of PulteGroup from a “neutral” rating to an “underperform” rating and set a $22.00 price target for the company. in a research note on Monday, July 10th. Finally, Barclays PLC downgraded shares of PulteGroup from an “overweight” rating to an “equal weight” rating and set a $24.00 price target for the company. in a research note on Tuesday, July 11th. They noted that the move was a valuation call. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $25.45.
Shares of PulteGroup (NYSE:PHM) opened at 27.63 on Tuesday. The company has a 50-day moving average price of $25.99 and a 200-day moving average price of $24.34. PulteGroup has a 12-month low of $17.69 and a 12-month high of $27.76. The firm has a market capitalization of $8.34 billion, a P/E ratio of 15.29 and a beta of 1.06.
PulteGroup (NYSE:PHM) last posted its quarterly earnings results on Tuesday, July 25th. The construction company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.02. The business had revenue of $2.02 billion during the quarter, compared to the consensus estimate of $2.03 billion. PulteGroup had a net margin of 7.35% and a return on equity of 13.43%. The firm’s revenue for the quarter was up 12.3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.37 earnings per share. Equities analysts predict that PulteGroup will post $2.07 EPS for the current year.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Achmea Investment Management B.V. purchased a new position in shares of PulteGroup during the second quarter valued at about $253,000. Dynamic Technology Lab Private Ltd purchased a new position in shares of PulteGroup during the second quarter valued at about $564,000. Koch Industries Inc. purchased a new position in shares of PulteGroup during the second quarter valued at about $220,000. 1st Global Advisors Inc. purchased a new position in shares of PulteGroup during the second quarter valued at about $266,000. Finally, Financial Partners Capital Management LLC increased its position in shares of PulteGroup by 0.3% during the second quarter. Financial Partners Capital Management LLC now owns 414,577 shares of the construction company’s stock valued at $10,170,000 after buying an additional 1,337 shares during the period. Institutional investors own 85.71% of the company’s stock.
PulteGroup Company Profile
PulteGroup, Inc is a homebuilder in the United States. The Company’s segments include Homebuilding and Financial Services. Its Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land.
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