On August 28, 2024, Thomas Folliard, a Director at PulteGroup Inc (NYSE:PHM), executed a sale of 19,000 shares of the company. The transaction was filed on the same day with the SEC. Following this transaction, the insider now owns 45,230 shares of PulteGroup Inc.

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PulteGroup Inc, a prominent player in the home construction industry, focuses on building single-family detached homes, townhouses, condominiums, and duplexes. The company operates across various geographic regions in the United States, catering to different customer segments including first-time, move-up, and active adult buyers.

Over the past year, the insider transaction history at PulteGroup Inc shows a trend of more sales than purchases among insiders. Specifically, there have been zero insider buys and five insider sells. Thomas Folliard's recent sale of 19,000 shares aligns with this trend, as he has not purchased any shares over the past year but has sold the same amount.

On the day of the sale, shares of PulteGroup Inc were priced at $131.14. This pricing positions the company with a market cap of approximately $27.01 billion. The price-earnings ratio of the stock stands at 9.93, which is below the industry median of 12.41, indicating a potentially lower valuation relative to peers.

Despite the lower price-earnings ratio, the stock appears to be significantly overvalued based on the GF Value, with a price-to-GF-Value ratio of 1.61. The GF Value, a measure of intrinsic value, suggests that the stock's current price is much higher than its estimated fair value of $81.36, factoring in historical trading multiples, adjustments based on past performance, and future business expectations.

This insider sale might draw the attention of current and potential investors, especially considering the stock's valuation metrics and the ongoing trends in insider transactions at PulteGroup Inc.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

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