KB Home (NYSE:KBH) Receives Average Rating of “Moderate Buy” from Brokerages

KB Home (NYSE:KBH) has been given a consensus recommendation of “Moderate Buy” by the twelve research firms that are covering the firm, Marketbeat Ratings reports. Six research analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $52.27.

KBH has been the topic of several analyst reports. UBS Group boosted their target price on KB Home from $48.00 to $65.00 in a report on Thursday, June 22nd. Raymond James upgraded shares of KB Home from a “market perform” rating to an “outperform” rating and set a $61.00 price objective for the company in a research note on Friday, July 14th. StockNews.com started coverage on shares of KB Home in a research note on Thursday, August 17th. They issued a “hold” rating on the stock. Royal Bank of Canada raised their price target on shares of KB Home from $37.00 to $52.00 in a research report on Thursday, June 22nd. Finally, Seaport Res Ptn reaffirmed a “neutral” rating on shares of KB Home in a research report on Wednesday, June 14th.

KB Home Price Performance

Shares of NYSE KBH opened at $49.91 on Friday. KB Home has a 1 year low of $25.31 and a 1 year high of $55.37. The stock has a market capitalization of $4.02 billion, a P/E ratio of 5.72, a P/E/G ratio of 1.13 and a beta of 1.68. The company’s 50-day moving average is $51.76 and its 200 day moving average is $46.10.

KB Home (NYSE:KBH) last posted its quarterly earnings data on Wednesday, June 21st. The construction company reported $1.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.33 by $0.61. The business had revenue of $1.77 billion during the quarter, compared to the consensus estimate of $1.43 billion. KB Home had a return on equity of 20.85% and a net margin of 10.98%. The firm’s quarterly revenue was up 2.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.32 earnings per share. Research analysts anticipate that KB Home will post 6.29 earnings per share for the current year.

KB Home Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 17th. Stockholders of record on Thursday, August 3rd were paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 1.60%. The ex-dividend date of this dividend was Wednesday, August 2nd. This is a boost from KB Home’s previous quarterly dividend of $0.15. KB Home’s dividend payout ratio is 9.17%.

Insider Activity at KB Home

In other KB Home news, CFO Jeff Kaminski sold 108,396 shares of the company’s stock in a transaction that occurred on Tuesday, July 11th. The shares were sold at an average price of $51.15, for a total transaction of $5,544,455.40. Following the completion of the sale, the chief financial officer now directly owns 152,626 shares of the company’s stock, valued at $7,806,819.90. The sale was disclosed in a filing with the SEC, which can be accessed through this link. In other news, Director Melissa Lora sold 9,649 shares of KB Home stock in a transaction dated Wednesday, August 16th. The stock was sold at an average price of $53.19, for a total transaction of $513,230.31. Following the transaction, the director now directly owns 180,619 shares of the company’s stock, valued at approximately $9,607,124.61. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Jeff Kaminski sold 108,396 shares of the business’s stock in a transaction that occurred on Tuesday, July 11th. The shares were sold at an average price of $51.15, for a total value of $5,544,455.40. Following the transaction, the chief financial officer now owns 152,626 shares of the company’s stock, valued at $7,806,819.90. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 162,574 shares of company stock worth $8,399,080. 4.44% of the stock is owned by company insiders.

Hedge Funds Weigh In On KB Home

Several large investors have recently added to or reduced their stakes in KBH. Ameritas Advisory Services LLC purchased a new position in shares of KB Home during the 1st quarter valued at $25,000. Harbour Investments Inc. purchased a new position in shares of KB Home in the second quarter valued at about $26,000. Heritage Wealth Management LLC lifted its position in shares of KB Home by 100.0% in the fourth quarter. Heritage Wealth Management LLC now owns 880 shares of the construction company’s stock valued at $28,000 after acquiring an additional 440 shares in the last quarter. National Bank of Canada FI bought a new position in shares of KB Home in the first quarter worth about $32,000. Finally, Bessemer Group Inc. purchased a new stake in shares of KB Home during the second quarter worth about $34,000. Hedge funds and other institutional investors own 91.27% of the company’s stock.

KB Home Company Profile

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.