The Case for and Against PulteGroup, Inc. (PHM)

PulteGroup, Inc. (PHM) is an interesting player in the Industrial Goods space, with a focus on Residential Construction. The stock has been active on the tape, currently trading at $30.18, up from yesterday’s close by 0.47%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

PulteGroup, Inc. (PHM) currently trades with a market capitalization of $8.50 Billion. That value represents a market adjusting for revenues that have been growing by 12.05 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $631.04 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.45 on a per share basis this quarter. Perhaps, that suggests something about why 2.39% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, PulteGroup, Inc. recorded a 52-week high of $35.21. It is now trading 5.03% off that level. The stock is trading $31.57 its 50-day moving average by 1.39%. The stock carved out a 52-week low down at $21.41.

In recent action, PulteGroup, Inc. (PHM) has made a move of +5.12% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 17.8, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 6.38% with $259.31 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of PHM.

Previous articleUnited Technologies Corporation (UTX): From Top to Bottom
Next articleThese stock’s might change the kismet of Investors: Chegg, Inc. (CHGG), The PNC Financial Services Group, Inc. (PNC)