PulteGroup’s Q2 Earnings Beat vs Rank 474 Trading Slump

PulteGroup (PHM) closed August 21 with a 0.92% decline, trading volume of $180 million, and a rank of 474th in market activity. The stock’s recent performance contrasts with its Q2 2024 earnings report, where adjusted earnings of $3.03 per share exceeded estimates by 3.8%, while revenue of $4.4 billion outperformed forecasts by 0.8%. Despite these results, analysts noted declining home sale volumes and gross margins, with net new orders falling 10.8% year-over-year.

Institutional ownership of PHM stands at 89.90%, with 647 buyers and 505 sellers recorded in the past 12 months. Recent inflows totaled $4.08 billion, while outflows reached $2.52 billion. Major institutional investors, including Vanguard and BlackRock, have adjusted holdings, reflecting mixed sentiment. The company’s cash reserves declined to $1.27 billion by Q2’s end, down from $1.65 billion in late 2024, as operating cash flow fell to $421.7 million from $657.3 million in the prior year.

A backtested strategy of buying the top 500 stocks by daily volume and holding for one day from 2022 to 2025 yielded a 7.61% total return. The approach achieved a 1.98% average daily return and a Sharpe ratio of 0.94, but faced a maximum drawdown of -29.16%, underscoring market volatility risks during downturns.