Pulte stock: buy or sell?

PHM stock price: $32.70 -1.39% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

3

After climbing for 4 days, Friday Pulte depreciated a fatal -1.39%, closing at $32.70.

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. The company is involved in the acquisition and development of land primarily for residential purposes; and the construction of housing on such land.

Should I buy Pulte stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Pulte stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean PHM will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Pulte stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 8 ratings published for PHM stock in the last 30 days.

The general sentiment of these ratings is bearish for PHM stock, with 3 negative ratings.
Is PHM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-23Seaport Global Securitiesn/aBuy
2019-7-24Royal Bank of CanadaUnderperformSector Perform
2019-4-10JPMorgan Chase & Co.UnderweightNeutral
2019-2-14Raymond JamesOutperformMarket Perform
2019-1-30Royal Bank of CanadaIn-LineUnderperform
2019-1-17BTIG ResearchNeutralSell
2019-1-11Royal Bank of CanadaSector PerformUnderperform
2019-1-11Buckingham Researchn/aNeutral

Pulte stock analysis

Daily outlook

After climbing for 4 days, Friday Pulte depreciated a fatal -1.39%, closing at $32.70.

After climbing for 4 sessions, Friday Pulte depreciated a fatal -1.39%, closing at $32.70. PHM shows a strong short term uptrend with several rising tops and rising bottoms. Since its last bottom on Aug 15th, PHM climbed unceasignly breaking out above its last top at 32.58. On April, SMA100d and SMA200d crossed up triggering a rise of 13.38%. On Aug/7 PHM price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock.

PHM stock chart (daily)

Weekly outlook

Pulte shares gained 1.96% this week, ending at $32.70. With this, it's been 3 climbing weeks in a row, soaring a 4.27%.

Pulte stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since late March when SMA20w and SMA40w crossed up, PHM price gained $6.21 per share (23.44%). Since price and SMA40w lines crossed up early March, PHM climbed $6.16 (23.21%).

PHM stock chart (weekly)

Pulte stock price history

Pulte IPO was on March 17th, 1980 at $0.14 per share1. Since then, PHM stock surged a 23,257.10%, with an average of 596.30% per year. If you had invested right after PHM's IPO a $1,000 in Pulte stock in 1980, it would worth $232,571.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Pulte stock historical price chart

PHM stock reached 52-week highs on July/22 at $34.03, and all-time highs 2005-07-28 with a price of 42.77.

Pulte stock price target is $23.70

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' PHM stock price predictions in the hope that they will be met as they may be wrong and not met. We detected 4 price forecasts for Pulte stock released in the last 30 days:
PHM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-23Seaport Global SecuritiesInitiatesn/a$44.00-
2019-1-30Royal Bank of CanadaLowers Target$23.00$2.90-87.4%
2019-1-17BTIG ResearchDowngradesn/a$23.00-
2019-1-11Royal Bank of CanadaDowngradesn/a$25.00-
(in average)$23.00$23.703.0%
Moving in a range from $44.00 and $2.90, the price prediction for Pulte stock is $23.70. In average, analysts' outlook on PHM price target is positive, upgrading the target by a 3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on April, Pulte soared a decent 7.96%. As soon as we get its posted EPS from the earnings report, we will update this review.
PHM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.65n/a
2017-Q32017-10-240.590.58-1.7%
2017-Q42018-01-300.850.883.5%
2018-Q12018-04-240.440.5934.1%
2018-Q22018-07-260.740.8920.3%
2018-Q32018-10-230.951.016.3%
2018-Q42019-01-291.091.111.8%
2019-Q12019-04-220.47n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw an astounding growth of 18.78% to $10,188.30 million USD. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) grew a 4.82% to 10.03%.

To have an up to date view of the financial situation of Pulte, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Pulte TTM sales up to March 2019 were $10,214.93 and income was $1,018.03 million dollars. When comparing this TTM figures with the last reported annuality, we can review Pulte business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, remained steady a neutral 0.26%. Similarly, profit margin (net income/revenues) stayed constant at 10.03%.

PHM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$5,600 M-$2,600 M46.4%-
2014$5,822 M3.97%$474 M8.1%-81.76%
2015$5,982 M2.74%$494 M8.3%4.16%
2016$7,668 M28.19%$603 M7.9%21.98%
2017$8,578 M11.86%$447 M5.2%-25.80%
2018$10,188 M18.78%$1,022 M10.0%128.53%
TTM $10,215 M0.26%$1,018 M10.0%-0.39%

Quarterly financial results

Pulte posted $1,996.69 million in revenues for 2019-Q1, a -33.42% decline compared to previous quarter. Reported quarter earnings marked $166.76 million with a profit margin of 8.35%. Profit margin remained constant a 0.43% compared to previous quarter when profit margin was 7.92%. When comparing revenues to same quarter last year, Pulte sales marked a slightly good gain and appreciated a 1.35%.
PHM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$2,080 M-$100 M4.8%-
2017-Q3$2,100 M0.96%$176 M8.4%76.16%
2017-Q4$2,790 M32.88%$77 M2.8%-55.91%
2018-Q1$1,970 M-29.40%$171 M8.7%120.57%
2018-Q2$2,570 M30.44%$324 M12.6%89.80%
2018-Q3$2,649 M3.10%$290 M10.9%-10.66%
2018-Q4$2,999 M13.20%$238 M7.9%-17.92%
2019-Q1$1,997 M-33.42%$167 M8.4%-29.83%

Pulte ownership

When you are planning to buy a company, it's always worth to review its ownership structure.

Pulte shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 7.66% of all shares.

Bearish positions for PHM stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

PHMDHIKBHMDCTOL
Market cap$9.1 B$18.4 B$2.5 B$2.3 B$5.0 B
Total shares277.1 M373.2 M87.0 M61.5 M143.9 M
Float shares254.2 M335.4 M78.2 M49.3 M132.0 M
  - Institutional holdings (%)92.1%85.7%91.7%82.6%84.8%
  - Insider holdings (%)7.7%8.2%11.7%20.0%8.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Pulte summary

Friday, August 23rd, 2019
Open$33.25
Close$32.70
Day range$32.63 - $33.73
Previous close$33.16
Session gain-1.39%
Average true range$0.76
50d mov avg$32.21
100d mov avg$31.63
200d mov avg$29.03
Daily patternlb03c
Weekly pattern lt06a

Pulte performance

To measure stock performance is always good to compare with competitors or related stocks. We compared Pulte against D.R. Horton, , M.D.C and Toll Brothers in the following table:
Stock3m6m12m
PHMPulte2.16%17.75%16.29%
DHID.R. Horton10.54%21.22%11.02%
KBH6.15%19.77%14.25%
MDCM.D.C16.45%27.06%19.27%
TOLToll Brothers-3.48%-6.73%-4.40%

Pulte competitors

We chose a few stocks to conform a list of Pulte competitors to check if you are interested in investing in PHM: