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Monday, Aug 19
Pulte slips on profit taking; Wells Fargo upgrades on valuation
- Pulte Homes (PHM -2%) succumbs to a bout of profit taking following last weeks +10% run on the back of last weeks announcement that it was moving its corporate headquarters to the Buckhead community in Atlanta, and signaled plans to expand its staff.
- The stock initially made a move higher in an attempt to push through Friday's high, but quickly gave way to sellers looking to lock in gains.
- The upside move was fueled by an upgrade by Adam Rudiger at Wells Fargo to Outperform on valuation, noting that a favorable buyer mix should limit the company's downside risk.
- Rudiger adds that PHM is better positioned to weather higher mortgage rates than its peers, who are more focused on the entry-level buyer.