Pultegroup (NYSE:PHM) Overbought, but Is It Time to Sell?

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Pultegroup (NYSE:PHM) is at overbought status with an RSI(14) at 88.71 .

The Relative Strength Index (RSI) is one of the most popular technical indicators used to evaluate strengthening and weakening momentum in stock movements. An RSI above 70 is considered overbought with RSI’s under 30 indicating oversold. Overbought is a technical condition that occurs when price momentum is considered too high and susceptible to a decline.

Volatility

Pultegroup has a beta of 1.17 meaning it is higher in volatility than the market as a whole. Stocks with a beta lower than the market are considered to be less risky than the market while those with a higher beta are more risky than the market over the long haul.

The stock’s Average True Range (ATR) is 0.61. The ATR is a measure of volatility. A high or low ATR doesn’t tell you which way a stock will move but is a signal that it is likely to move.

Short Interest

Traders are more bullish on shares of Pultegroup if you take a look at the downtick in short interest. The firm experienced a fall in short interest of -6.97% as of the latest report on October 13, 2017. Short shares decreased 1,197,789 over that period. The days to cover increased to 5.0 and the short interest percentage is 0.05% as of October 13.

Insider Activity

Pultegroup (NYSE:PHM) has been the object of insider selling activity recently. James R. Ellinghausen, Exec. Vice President-HR sold $4,077,239 worth of shares at a price of $29.78 on October 27th. The Exec. Vice President-HR now owns $7,433,445 of the stock as reported to the SEC.

Recent Analyst Ratings

November 1 investment analysts at KeyCorp reiterated a “Hold” rating on the stock. Equity analyst Barclays PLC updated coverage of PHM stating a rating of “Hold” and establishing a price target of $26.00.

On October 25 FBR & Co made no change to the stock rating of “Buy” targeting a price of $31.00. On October 25 analysts at Bank of America Corporation updated guidance on PHM with a rating of “Buy” and price target of $34.00.

Royal Bank Of Canada raised the price target on October 25 changing the price objective from $28.00 to $33.00 and issued a “Outperform” rating. On October 24, 2017 Credit Suisse Group issued a report on PHM and giving a rating of “Buy” and projecting a price target of $35.00.

The P/E ratio is 16.15 and the market cap is 9.66B. In the last earnings report the EPS was $2.04 with 293.97M shares presently outstanding.

Company Information

PulteGroup, Inc., launched on September 17, 1987, is a homebuilder in the United States. The Business’s segments include Homebuilding and Financial Services. Its Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. Its Financial Services operations consist principally of mortgage banking and title operations. The Business’s subsidiaries are engaged in the homebuilding business. The Company offers a product line to meet the needs of homebuyers in its focused markets. Through its brands, which include Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods, the Company offers a range of home designs, including single-family detached, townhouses, condominiums and duplexes..