Mon, Jul. 25, 7:30 AM
- PulteGroup (NYSE:PHM) is higher by 1.7% premarket following an upgrade to Buy from Hold from Deutsche's Nishu Sood. New management is likely to drive faster growth and quicker monetization of assets, says Sood, with the boosted returns driving boosted valuation. The price target is lifted to $27 from $20, suggesting about 24% upside from Friday's close.
Thu, Jul. 21, 1:54 PM
- Noting a sizable move higher in the stock price, management's commitment to slow land purchases, three new board members (including one with homebuilding experience, and two to join the CEO search), boosted buybacks, and a promise to cut SG&A expense, PulteGroup (PHM +4.2%) founder William Pulte is pleased with changes since he started agitating for them a bit more than three months ago.
- Next steps he'd like to see include selection of a new CEO after a fair and fast process, reduction of land inventory, more board seats for executives with homebuilding experience, and solid operational execution and retention of key talent.
- Previously: Pulte beats, boosts buyback, adds board members; +3.3% premarket (July 21)
- Previously: Elliott Management thinks Pulte could be a double - CNBC (July 21)
Thu, Jul. 21, 11:42 AM
- Pulte's (PHM +3.2%) Value Creation plan could push the stock price to $35-$40 from the current $20 area, says a talking-its-book Elliott Management, according to CNBC's Scott Wapner.
- Said plan includes forgoing land purchases for stock buybacks, and a promise to cut costs.
- Elliott's deal with the board was more about adding new directors, rather than the immediate removal of CEO Richard Dugas, adds Wapner.
- Yet to be heard from is Pulte's largest shareholder and founder, William Pulte.
- Previously: Pulte beats, boosts buyback, adds board members; +3.3% premarket (July 21)
Fri, Jun. 17, 10:30 AM
- May housing starts at a seasonally-adjusted annualized pace of 1.164M edged lower from April, but were up 9.5% from a year ago (and vs. expected 1.15M). Single-family starts of 764K were slightly higher than April.
- The major averages are modestly lower on the session, but the homebuilders (ITB +1%) are posting strong gains, led by Toll Brothers (TOL +1.6%), Hovnanian (HOV +3.7%), KB Home (KBH +1.8%), Lennar (LEN +1.2%), PulteGroup (PHM +1.4%), Beazer (BZH +4.7%), D.R. Horton (DHI +1.2%).
Wed, Jun. 15, 10:10 AM
- Pleased the board has retained an executive search firm and invited him to propose potential candidates to succeed CEO Richard Dugas, PulteGroup (PHM +0.9%) founder and largest shareholder William Pulte hopes to see results no later than July 31.
- Given prior comments from Dugas suggesting President Ryan Marshall as his preferred replacement, Pulte says it's essential the members of the board's special committee as well as the executive search firm be truly independent and transparent.
- On any candidate's resume, says Pulte: Public company CEO experience in the homebuilding sector, or at least 25 years in the business; Land acquisition and management in multiple homebuilding operations across several markets; senior level management experience in recessionary environments; be a consensus builder.
Tue, Jun. 7, 2:23 PM| Tue, Jun. 7, 2:23 PM
Tue, May 24, 10:09 AM
- April new home sales at a seasonally adjusted annualized rate of 619K were a full 16.6% above the upwardly revised March print, and 23.8% higher than year-ago levels. The number also flew past expectations for just a 2% rise to 523K.
- Sales in the Northeast of 55K gained from 36K in March; Midwest of 60K down from 63K; South of 352K vs. 304K; West of 152K vs. 128K.
- Full report
- Tossing this bit of information in with strong FQ2 earnings from Toll Brothers (TOL +6.4%) has the homeowners (ITB +2.7%) surging well ahead of the market averages.
- Hovnanian (HOV +4.9%), KB Home (KBH +3.8%), Beazer (BZH +5.4%), Lennar (LEN +3.2%), Pulte (PHM +3.1%), D.R. Horton (DHI +3.3%)
Mon, Apr. 25, 12:37 PM
- Pulling his Outperform rating on PulteGroup (PHM -2.2%), analyst Buck Horne takes note of the escalating battle between the board and the Pulte family, and the uncertainty its creates over who will lead the company going forward.
- As for operations, Horne mentions the company's unwillingness to boost guidance despite the Q1 beat - a signal that dilution from the Wieland purchase could be greater than expected.
- Finally, there was the sharp deceleration in per-community absorption across all brands, says Horne. Overall order growth was up 10% Y/Y, but absorption was flat after trending closer to 10% Y/Y in Q4.
- Now read: Pulte Homes' Founder's Letter To The Board (April 13)
Wed, Apr. 20, 6:24 PM
- Amid a contentious board skirmish, PulteGroup (PHM +2.8%) founder (and top shareholder) Bill Pulte is calling on CEO Richard Dugas and lead director Jim Posti to resign from the board immediately -- or else he will vote against all directors at the annual meeting.
- The two worked together on the "failed Centex deal, where our shareholders lost over $1.46B," Pulte writes.
- "I have grave concerns with PulteGroup's massive shareholder value destruction and inability to reverse the company's chronic underperformance relative to peers and the broader market," he says.
- The company is shedding talent to competitors as well, Pulte says, recently including its division president for Dominion Homes, Keith Tomlinson, and division president Curt VanHyfte, among a number of other execs.
- "It is time for a seasoned homebuilding operator to lead the company in order to reduce the significant loss of talent and to properly execute on a plan to drive shareholder value," he continues.
- Last week, former chief James Grosfeld resigned from the board, complaining of being excluded from meetings.
- Pulte's letter
- Now read PulteGroup: What The Next CEO Needs To Know »
Tue, Apr. 5, 9:54 AM
- Lead independent director James Postl sounds off on the actions of company founder (and owner of 8.87% of the stock) Bill Pulte, his grandson (same name), and former chairman and CEO (and now recently-appointed board member) Jim Grosfeld.
- "We believe [Bill Pulte's] campaign is misguided and is not in the best interests of shareholders," says Postl.
- He also calls out Grosfeld for a number of actions since joining the board in December that "are inconsistent with acceptable norms of corporate governance and without due regard for the interests of ALL shareholders." For these and other reasons, the board unanimously (other than Grosfeld) decided not to nominate Grosfeld to the board for May elections.
- Postl belives the Pulte's campaign against CEO Dugas (who has now announced his retirement) apparently revolves around the company's HQ move to Atlanta from Detroit (where Pulte founded the company). Postl notes this move was spearheaded by the board.
- Source: Press Release
- Previously: Management shakeup at PulteGroup rates downgrade from JPMorgan (April 5)
- PHM -1.5%
Mon, Apr. 4, 1:15 PM
- Grandson of company founder Bill Pulte and former chairman Jim Grosfeld "recently demanded an immediate CEO change and a different direction," according to a statement from PulteGroup (PHM -7.8%).
- It's surprising, says Bloomberg's Drew Reading, noting CEO Richard Dugas' strategy to boost profitability has been working, with net income and gross margins both nicely higher in Q4 than a year earlier.
- Now read: 5 Best Real Estate Stocks For Low Interest Rates (March 24)
Mon, Mar. 21, 11:47 AM
- Existing home sales tumbled 7.1% in February to a seasonally-adjusted annualized pace of 5.08M. Expectations had been for just a mild slip to 5.31M from 5.47M previously.
- The news is a good excuse to take profits in the homebuilders after a big run higher over the past six weeks.
- ITB -1.05%, XHB -0.6%
- Toll Brothers (TOL -1%), Hovnanian (HOV -1.9%), Lennar (LEN -1.1%), KB Home (KBH -1.5%), D.R. Horton (DHI -1%), PulteGroup (PHM -2.6%)
Wed, Feb. 24, 10:07 AM
- New home sales at a seasonally-adjusted annualized rate of 494K in January were 9.2% lower than December and 5.2% above the level one year ago.
- Most regions were fairly stable, with the exception of the West, where sales dropped to 110K from 162K.
- The homebuilder ETFs - ITB, XHB - are down about 1.5%, inline with the broader market.
- Individual names: Toll Brothers (TOL -2.5%), Hovnanian (HOV -1.4%), Lennar (LEN -2%), D.R. Horton (DHI -1.1%), Putle (PHM -1.5%), KB Home (KBH -2.1%)
Mon, Jan. 25, 11:50 AM
- "Texas is in good shape," says D.R. Horton (DHI -3.5%) CEO David Auld, speaking on the earnings call (reported by Diana Olick). "We have a positive tone because we're seeing positive things out there in the market." Auld also takes note of DHI's cheaper "Express" brand, which he says is driving market share gains.
- The stock is lower despite an earnings beat, with investors perhaps focusing on slowing price gains (sales orders up 9%, dollar amount up 12%).
- Other names: Hovnanian (HOV -4.6%), Toll Brothers (TOL -3.4%), Lennar (LEN -3.4%), PulteGroup (PHM -3.1%), KB Home (KBH -3.8%).
- ETFs: ITB, XHB
Dec. 16, 2015, 9:50 AM
- The seasonally-adjusted annualized rate of housing starts in November of 1.173M was up 10.5% from October and 16.5% from a year ago. Single-family starts of 768K gained 7.6% from October.
- Building permits of 1.289M gained 11% M/M and 19.5% Y/Y. SIngle-family permits of 723K gained just 1.1% from last month.
- The South was a particular area of strength, with housing starts in that region of 615K up from 507K in October. SIngle-family starts there of 409K gained from 376K.
- The major average are up modestly, but the ITB is ahead 1.5%, and XHB +1.25%.
- Individual names: Toll Brothers (TOL +1.8%), Lennar (LEN +1.7%), Pulte (PHM +1.5%), KB Home (KBH +0.9%), D.R. Horton (DHI +1.6%), Hovnanian (HOV -1.8%)
Nov. 11, 2015, 12:31 PM
- Yesterday's earnings beat and big move higher from D.R. Horton (NYSE:DHI) spread through the entire sector, and today is seeing plenty of follow-through, with DHI up another 3.2%.
- Reporting on the UBS conference today, the WSJ's Kris Hudson says Toll Brothers CEO Doug Yearly sounds coy about the upcoming spring selling period, telling attendees he's not pessimistic, but doesn't yet see an impetus pointing to a great season.
- Of supposed slowing of international buying on the West Coast: "We haven't yet personally seen any negative impact."
- ITB +1.75%, XHB +0.9%
- Hovnanian (HOV +5.6%), PulteGroup (PHM +1.3%), Lennar (LEN +2.3%), KB Home (KBH +2.5%), Beazer (BZH +5.9%)
- Previously: More on D.R. Horton's FQ4 beat (Nov. 10)
PulteGroup, Inc. is engaged in the homebuilding business. It is also engaged in the mortgage banking and title operations. The company's homebuilding business includes the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on... More
Sector: Industrial Goods
Industry: Residential Construction
Country: United States
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