Wolfe Research has recently reduced PulteGroup, Inc. (PHM) stock to Peer Perform rating, as announced on August 14, 2024, according to Finviz. Earlier, on August 5, 2024, Seaport Research Partners had reduced the stock from a Buy to Neutral. Citigroup also reduced Neutral rating with a price target of $113. Additionally, UBS reduced Neutral rating on January 4, 2024, with a target price of $120. Jefferies analysts, in their report published on November 27, 2023, also initiated Buy rating and set a price target of for PulteGroup, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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PulteGroup, Inc. (PHM) Stock Trading Recap
On Friday, PulteGroup, Inc. (PHM) stock saw a modest uptick, ending the day at $130.2 which represents a slight increase of $1.93 or 1.50% from the prior close of $128.27. The stock opened at $128.93 and touched a low of $128.93 during the day, reaching a high of $132.6. The volume of shares traded was 2.56 million exceeding the average volume of 1.97 million.
PHM Stock Performance and Moving Averages
In recent trading, PulteGroup, Inc. (PHM) stock price has shown some volatility, fluctuating 0.05% over the last five trades and 8.52% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 14.41%, and it has gained 13.72% in the previous three months. Currently, PHM is trading at 2.36%, 6.65%, and 17.07% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, PHM, a Consumer Cyclical sector stock, is trading -4.59% below its 52-week high but remains 89.24% above its 52-week low. The Average True Range (ATR) (14 days) of 3.77 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
PulteGroup, Inc.’s Profitability and Valuation Ratios
PulteGroup, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 21.41% and a profit margin of 16.72%, with a gross margin of 14.41%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, PulteGroup, Inc.’s market capitalization stands at $27.02 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 9.93, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 9.56. Additionally, the Price-to-Sales Ratio is 1.6, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.41, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.70% of PulteGroup, Inc. (PHM)’s shares, while financial institutions hold 93.10%.
Notable insider trades include FOLLIARD THOMAS J, Director at PulteGroup, Inc. (PHM), who sold 19000 shares on Aug 28 ’24, at $131.14 each, totaling $2.49 million. On Aug 23 ’24, OShaughnessy Robert, Exec. VP & CFO, sold 71007 shares for $134.83 each, amounting to $9.57 million. Additionally, on Aug 20 ’24, Snyder Lila sold 1528 shares at $124.37 each, generating $0.19 million.
