PulteGroup Inc. [NYSE:PHM]’s prices stumbled on Thursday.
Other data for the company is as follows:
- Stochastic %K of 86.22
- Weighted Alpha of 67.9
Day traders should note that the company’s next earning date is 10/22/2020. The company has price per sales of 1.24 and price per cash flow of 9.45.
The Bears are coming
Holding a Market Cap of $13.11 billion, PulteGroup Inc. has seen a trading range over the last year of $17.12-$49.29.
For the last five days, PHM is up from its last closing price. The average shares trading hands each day is 2.81M, with average 10-day volume coming in at 2.52 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for PHM. When we apply the Elder Force Index to PulteGroup Inc., we are seeing an Elder Force Indicator number of -6376.01.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. PHM is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 10.07. Moreover, the company’s enterprise value has gone from $10.67B to $7.44B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, PHM made a profit of 457.01 million. PulteGroup Inc. also saw quarter revenue growth year over year of 0.24%. In addition, the company has operating cash flow of $1.58 billion.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 47.84 compared to the 50-day moving average of 45.74. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. PHM currently holds a 9-day RSI of 65.93%, while 100-day RSI stands at 55.93%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. PHM’s 9-day MACD is 0.98 and the company’s 100-day MACD stands at 7.52.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 3.17% by insiders and 94.59% by institutions.
Over the last six months, insiders have sold 35,726 with the most recent transaction from OShaughnessy Robert, Exec. VP & CFO, with a sell at price 44.15 per share.
Conclusion
Overall, the recommended rating for PHM is Moderate Buy. Currently, the company has 15 analysts watching the stock, and the average quarterly earnings estimate is 1.12. Quarterly revenue estimates are averaging 2.73B with the high estimate reaching 3.04B and the low at 2.32B.
To review, the current 1-year target estimate is sitting at 47.46, while the current price 48.96. Based on this, we expect some pullback on the stock over time given our above analysis.
