Royal Bank of Canada Boosts PulteGroup (NYSE:PHM) Price Target to $65.00

PulteGroup (NYSE:PHM) had its price target hoisted by stock analysts at Royal Bank of Canada from $54.00 to $65.00 in a note issued to investors on Tuesday, Benzinga reports. The firm presently has an “outperform” rating on the construction company’s stock. Royal Bank of Canada’s price objective would suggest a potential upside of 7.74% from the stock’s previous close.

Several other brokerages have also recently commented on PHM. Janney Montgomery Scott assumed coverage on PulteGroup in a research note on Thursday, January 21st. They issued a “buy” rating and a $61.00 price target for the company. Raymond James raised their price target on PulteGroup from $60.00 to $63.00 and gave the company a “strong-buy” rating in a report on Monday, January 25th. Wells Fargo & Company initiated coverage on PulteGroup in a report on Wednesday, April 21st. They issued an “equal weight” rating and a $55.00 price target on the stock. Wolfe Research began coverage on PulteGroup in a report on Monday, March 22nd. They issued a “peer perform” rating on the stock. Finally, BTIG Research increased their target price on PulteGroup from $56.00 to $76.00 and gave the company a “buy” rating in a research note on Wednesday, April 28th. One research analyst has rated the stock with a sell rating, five have given a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus target price of $56.57.

NYSE:PHM opened at $60.33 on Tuesday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.30 and a quick ratio of 1.31. PulteGroup has a fifty-two week low of $26.09 and a fifty-two week high of $60.66. The stock’s 50-day moving average is $53.11 and its two-hundred day moving average is $46.73. The stock has a market cap of $15.96 billion, a PE ratio of 12.60, a price-to-earnings-growth ratio of 0.60 and a beta of 1.40.

PulteGroup (NYSE:PHM) last released its earnings results on Tuesday, April 27th. The construction company reported $1.28 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.22 by $0.06. PulteGroup had a return on equity of 20.62% and a net margin of 12.01%. The company had revenue of $2.73 billion for the quarter, compared to analysts’ expectations of $2.89 billion. During the same quarter in the previous year, the business posted $0.74 EPS. The business’s revenue for the quarter was up 18.9% on a year-over-year basis. On average, equities research analysts anticipate that PulteGroup will post 4.61 earnings per share for the current year.

PulteGroup declared that its Board of Directors has approved a stock buyback program on Tuesday, April 27th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the construction company to repurchase up to 6.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

In related news, Director Brian P. Anderson sold 1,500 shares of PulteGroup stock in a transaction that occurred on Friday, April 30th. The stock was sold at an average price of $59.29, for a total transaction of $88,935.00. Following the completion of the sale, the director now directly owns 64,881 shares of the company’s stock, valued at approximately $3,846,794.49. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, VP John J. Chadwick sold 8,538 shares of PulteGroup stock in a transaction that occurred on Friday, February 19th. The stock was sold at an average price of $46.32, for a total value of $395,480.16. Following the sale, the vice president now directly owns 78,895 shares of the company’s stock, valued at $3,654,416.40. The disclosure for this sale can be found here. Insiders own 0.60% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. Marshall Wace LLP acquired a new position in PulteGroup in the 1st quarter valued at $111,000. Schonfeld Strategic Advisors LLC raised its holdings in shares of PulteGroup by 16.2% during the 3rd quarter. Schonfeld Strategic Advisors LLC now owns 107,220 shares of the construction company’s stock worth $4,963,000 after buying an additional 14,980 shares in the last quarter. Kingsview Wealth Management LLC bought a new stake in PulteGroup during the 3rd quarter worth $254,000. Advisor Partners LLC grew its position in shares of PulteGroup by 4.3% in the 3rd quarter. Advisor Partners LLC now owns 10,026 shares of the construction company’s stock valued at $464,000 after buying an additional 413 shares during the last quarter. Finally, New England Research & Management Inc. bought a new stake in shares of PulteGroup during the 4th quarter valued at about $533,000. 85.16% of the stock is owned by institutional investors and hedge funds.

About PulteGroup

PulteGroup, Inc, through its subsidiaries, primarily engages in the homebuilding business in the United States. The company acquires and develops land primarily for residential purposes; and constructs housing on such land. It offers various home designs, including single-family detached, townhouses, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods brand names.

Further Reading: When is a capital gain realized?

Analyst Recommendations for PulteGroup (NYSE:PHM)

Receive News & Ratings for PulteGroup Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PulteGroup and related companies with MarketBeat.com's FREE daily email newsletter.