PHM Bounces Back After Impressive Q3 Earnings Report

The equity touched record highs earlier this month

Digital Content Manager
Oct 22, 2020 at 9:01 AM
facebook twitter linkedin

PulteGroup, Inc. (NYSE:PHM) has emerged from the earnings confessional boasting third-quarter earnings and revenue that bested analysts' expectations. The homebuilder cited the recent home buying frenzy, due to record-low mortgage rates. PulteGroup also posted a 36% jump in orders -- an indicator of future demand -- to 8,202 homes, also topping estimates. 

At last check, PHM is up 0.7% at $45.60, pivoting higher after several weeks of downside. In fact, the security spent several sessions consolidating below its Oct. 9 record high of $49.70 before pulling back, though it looks like the 70-day moving average may have swooped in as last-minute support on the charts yesterday. For the year, the stock is up nearly 17%. 

Despite these record highs, some analysts still aren't convinced. Seven of the 12 in coverage consider PHM a "hold." On the other hand, the 12-month consensus price target of $50.71 is a 12.1% premium to last night's close, and represents a level not yet touched by the security. 

It looks like there's been an uptick in short-term put buying in the options pits. This is per PHM's Schaeffer's put/call open interest ratio (SOIR) of 1.19, which stands higher than 87% of readings from the past 12 months, suggesting these short-term option traders have rarely been more put-biased. 


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners