PulteGroup Sees Slowing Orders, Margin Pressure Despite Mortgage Rate Drop
In Q4 2025, PulteGroup experienced slowing order growth and margin compression despite a modest drop in mortgage rates, prompting underperformance in mid-cap value portfolios. Shares returned 8.45% over the past month and closed February 26 at $135.66 with a $26.091 billion market capitalization.
1. Q4 Performance and Order Trends
During Q4 2025, PulteGroup faced a deceleration in new home orders and experienced margin compression despite average mortgage rates easing slightly. The company’s underperformance weighed on mid-cap value portfolios focused on economically sensitive, cash-generative businesses.
2. Share Performance and Valuation
Over the one-month period, PulteGroup shares climbed 8.45% and traded between $88.07 and $144.50 over the past year. On February 26, 2026, the stock closed at $135.66, reflecting a market capitalization of approximately $26.091 billion.
3. Fund Holdings and Outlook
PulteGroup remained a holding in the Mid Cap Value Fund with continued conviction despite headwinds, and hedge fund ownership rose to 45 portfolios in Q4 from 42. Fund managers cited more attractive valuations in mid- and small-cap value stocks versus high-valued large caps.