PulteGroup, Inc. (NYSE:PHM) shareholders have witnessed a decrease in hedge fund sentiment in recent months.
As Lori Simpson of NYSE Post recently wrote:
“In December, the stock of PulteGroup, Inc. (NYSE:PHM)…posted a steady 8.83 percent increase in its market value. This come on the back of double digit (19 percent) growth in valuation, the stock recorded in the previous three months. This sustained improvement in the investor confidence in this stock has to be analyzed on the back of the following developments in the broader U.S economy.”
How have hedgies been trading PulteGroup, Inc. (NYSE:PHM)?
Heading into Q2, a total of 32 of the hedge funds Insider Monkey tracks were long in this stock, a change of -14 percent from the second quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes considerably.
Of the funds IM tracks, Odey Asset Management Group, managed by Crispin Odey, holds the most valuable position in PulteGroup, Inc. (NYSE:PHM). Odey Asset Management Group has a $196.6 million position in the stock, comprising 5.2 percent of its 13F portfolio. Coming in second is Ken Heebner of Capital Growth Management, with a $61.9 million position; the fund has 1.7 percent of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Cliff Asness’s AQR Capital Management, Israel Englander’s Millennium Management and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.
Judging by the fact that PulteGroup, Inc. (NYSE:PHM) has experienced declining sentiment from the smart money, logic holds that there is a sect of hedgies that decided to sell off their full holdings in Q1. At the top of the heap, Louis Navellier’s Navellier & Associates sold off the biggest position of all the hedgies we key on, comprising about $41.4 million in stock. Jim Simons’s fund, Renaissance Technologies, also dropped its stock, about $40.3 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 5 funds in Q1.
How are insiders trading PulteGroup, Inc. (NYSE:PHM)?
Bullish insider trading is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the last half-year time period, PulteGroup, Inc. (NYSE:PHM) has experienced three unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to PulteGroup, Inc. (NYSE:PHM). These stocks are The Ryland Group, Inc. (NYSE:RYL), NVR, Inc. (NYSE:NVR), Toll Brothers Inc (NYSE:TOL), Lennar Corporation (NYSE:LEN), and D.R. Horton, Inc. (NYSE:DHI). This group of stocks are in the residential construction industry and their market caps resemble PHM’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|The Ryland Group, Inc. (NYSE:RYL)||21||0||0|
|NVR, Inc. (NYSE:NVR)||19||0||1|
|Toll Brothers Inc (NYSE:TOL)||25||0||6|
|Lennar Corporation (NYSE:LEN)||48||0||0|
|D.R. Horton, Inc. (NYSE:DHI)||34||0||0|
Among the hedge funds Insider Monkey tracks, PulteGroup, Inc. was the third most widely held residential construction industry equity at the end of Q3.