PulteGroup, Inc. (NYSE:PHM) Surges Past On Improved Housing Sector Sentiments


Dallas, Texas 12/13/2013 (FINANCIALSTRENDS) – PulteGroup, Inc. (NYSE:PHM) is a $6.92 billion market capped residential construction manufacturer. It has been tracked by the S&P 500 index and has managed to post net income of $2.44 billion. This income has been generated by net sales from $5.59 billion and has managed to post net sales increase of 21 percent on a quarter on quarter basis. Not just that, the company’s profit margins in the same period has also grown by a huge 45 percent in the same period. It’s earnings per share too has seen a huge increase in the previous quarter for which the quarter numbers were reported. EPS grew by an 1856 percent which has contributed significantly to its profit margins.

This increase in sales observed by the residential construction industry is a direct reflection in the improvement of the housing sector in U.S over the past two to three quarters in U.S. This has in turn increased the stock valuation at the markets in the recent quarters. Over the past quarter, the stock of PulteGroup, Inc. (NYSE:PHM) has gained close to 9.65 percent and these gains have extended to the past month in which it has risen by 7.76 percent. At current valuations the stock has been trading at $18.06 per share which is 25.76 percent down from its prior 52 week high price points. The uptake in the investor sentiment has resulted in rating agencies upping their price points to $20.06 per share over the next few months.

In spite of the strong headwinds the stock faced in the early part of this year, the board has been consistent in paying out dividends to its share holders. Over the trailing 12 months, the company has paid out dividend of $0.2 per share which translates into a 1.11 percent dividend yield in the same period.