PulteGroup Inc. (NYSE: PHM) stock fell -1.60% on Friday to $39.34 against a previous-day closing price of $39.98. With 2.2 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.37 million shares. During the session, the Residential Construction company that operates in wider Consumer Cyclical sector, reached to the highest price of $40.84 whereas the lowest price it dropped to was $39.26. The 52-week range on PHM shows that it touched its highest point at $58.09 and its lowest point at $35.03 during that stretch. It currently has a 1-year price target of $52.50. With its current market cap of 8.99 billion, PHM has annualized dividend of $0.60 while the current yield stands at 1.53%. Beta for the stock currently stands at 1.34.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PHM was up-trending over the past week, with a rise of 1.11%, but this was down by -4.03% over a month. Three-month performance surged to 3.74% while six-month performance fell -15.20%. The stock lost -16.48% in the past year, while it has lost -31.18% so far this year. A look at the trailing 12-month EPS for PHM yields 9.04 with Next year EPS estimates of 9.54. For the next quarter, that number is 2.82. This implies an EPS growth rate of 43.50% for this year and -14.73% for next year. EPS is expected to grow by 9.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 33.50%.
Float and Shares Shorts:
At present, 236.33 million PHM shares are outstanding with a float of 229.92 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.89 million, which was 4.16% higher than short shares on Jun 14, 2022. In addition to Mr. Ryan R. Marshall as the firm’s Pres, CEO & Director, Mr. Robert T. O’Shaughnessy serves as its Exec. VP & CFO.
Through their ownership of 95.02% of PHM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.45% of PHM, in contrast to 38.54% held by mutual funds. Shares owned by individuals account for 21.22%. As the largest shareholder in PHM with 11.65% of the stake, The Vanguard Group, Inc. holds 26,968,445 shares worth 26,968,445. A second-largest stockholder of PHM, BlackRock Fund Advisors, holds 16,074,606 shares, controlling over 6.94% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in PHM, holding 10,808,229 shares or 4.67% stake. With a 3.03% stake in PHM, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 7,020,514 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.36% of PHM stock, is the second-largest Mutual Fund holder. It holds 5,456,599 shares valued at 221.87 million. Vanguard 500 Index Fund holds 2.29% of the stake in PHM, owning 5,302,297 shares worth 215.59 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PHM since 16 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PHM analysts setting a high price target of $80.00 and a low target of $41.00, the average target price over the next 12 months is $51.75. Based on these targets, PHM could surge 103.36% to reach the target high and rise by 4.22% to reach the target low. Reaching the average price target will result in a growth of 31.55% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PHM will report FY 2022 earnings on 01/31/2023. Analysts have provided yearly estimates in a range of $11.68 being high and $10.61 being low. For PHM, this leads to a yearly average estimate of $11.16. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. PulteGroup Inc. surprised analysts by $0.11 when it reported $2.73 EPS against a consensus estimate of $2.62. The surprise factor in the prior quarter was $0.11. Based on analyst estimates, the high estimate for the next quarter is $2.86 and the low estimate is $2.64. The average estimate for the next quarter is thus $2.76.
Summary of Insider Activity:
Insiders traded PHM stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 2,500 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 240,778 while 145,236 shares were sold.