KB Home (NYSE:KBH) Shares Gap Up After Dividend Announcement

KB Home (NYSE:KBH)’s stock price gapped up before the market opened on Thursday following a dividend announcement from the company. The stock had previously closed at $60.92, but opened at $62.82. KB Home shares last traded at $61.62, with a volume of 171,889 shares.

The newly announced dividend which will be paid on Thursday, May 23rd. Investors of record on Thursday, May 9th will be paid a $0.25 dividend. The ex-dividend date is Wednesday, May 8th. This is a boost from KB Home’s previous quarterly dividend of $0.20. This represents a $1.00 annualized dividend and a dividend yield of 1.64%. KB Home’s dividend payout ratio (DPR) is presently 10.88%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on KBH shares. The Goldman Sachs Group raised their target price on KB Home from $61.00 to $70.00 and gave the stock a “neutral” rating in a research note on Friday, March 22nd. Wells Fargo & Company lifted their price objective on KB Home from $65.00 to $70.00 and gave the company an “equal weight” rating in a research report on Thursday, March 21st. JPMorgan Chase & Co. lifted their price objective on KB Home from $68.50 to $70.50 and gave the company a “neutral” rating in a research report on Wednesday, March 27th. Evercore ISI cut their price objective on KB Home from $82.00 to $78.00 and set an “outperform” rating on the stock in a research report on Thursday, March 21st. Finally, Keefe, Bruyette & Woods lifted their price objective on KB Home from $67.00 to $77.00 and gave the company a “market perform” rating in a research report on Thursday, March 28th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and five have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $66.11.

KB Home Stock Up 1.0 %

The company’s fifty day moving average price is $65.93 and its 200-day moving average price is $58.52. The stock has a market capitalization of $4.63 billion, a PE ratio of 8.30, a price-to-earnings-growth ratio of 0.69 and a beta of 1.73.

KB Home (NYSE:KBH) last released its earnings results on Wednesday, March 20th. The construction company reported $1.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.57 by $0.19. KB Home had a net margin of 9.29% and a return on equity of 15.78%. The firm had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same period last year, the business earned $1.45 earnings per share. The business’s revenue was up 6.5% on a year-over-year basis. Equities research analysts anticipate that KB Home will post 8.01 earnings per share for the current year.

Insider Buying and Selling

In related news, CAO William R. Hollinger sold 45,471 shares of the business’s stock in a transaction that occurred on Tuesday, January 30th. The shares were sold at an average price of $60.47, for a total value of $2,749,631.37. Following the completion of the transaction, the chief accounting officer now directly owns 109,981 shares in the company, valued at approximately $6,650,551.07. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, CAO William R. Hollinger sold 45,471 shares of the business’s stock in a transaction that occurred on Tuesday, January 30th. The shares were sold at an average price of $60.47, for a total value of $2,749,631.37. Following the completion of the transaction, the chief accounting officer now directly owns 109,981 shares in the company, valued at approximately $6,650,551.07. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Brian J. Woram sold 83,272 shares of the business’s stock in a transaction that occurred on Tuesday, January 30th. The stock was sold at an average price of $60.53, for a total transaction of $5,040,454.16. Following the completion of the transaction, the executive vice president now owns 156,119 shares of the company’s stock, valued at $9,449,883.07. The disclosure for this sale can be found here. Insiders sold a total of 412,021 shares of company stock worth $24,954,977 in the last three months. Insiders own 4.44% of the company’s stock.

Institutional Investors Weigh In On KB Home

A number of large investors have recently added to or reduced their stakes in the stock. Mariner LLC grew its position in KB Home by 3.7% in the 3rd quarter. Mariner LLC now owns 5,484 shares of the construction company’s stock worth $254,000 after purchasing an additional 198 shares during the period. Nisa Investment Advisors LLC grew its position in KB Home by 3.9% in the 4th quarter. Nisa Investment Advisors LLC now owns 5,355 shares of the construction company’s stock worth $334,000 after purchasing an additional 200 shares during the period. Beck Bode LLC grew its position in KB Home by 0.4% in the 4th quarter. Beck Bode LLC now owns 57,114 shares of the construction company’s stock worth $3,567,000 after purchasing an additional 228 shares during the period. Wealthcare Advisory Partners LLC grew its position in KB Home by 2.1% in the 1st quarter. Wealthcare Advisory Partners LLC now owns 11,029 shares of the construction company’s stock worth $782,000 after purchasing an additional 231 shares during the period. Finally, Fifth Third Bancorp grew its position in KB Home by 40.9% in the 3rd quarter. Fifth Third Bancorp now owns 930 shares of the construction company’s stock worth $43,000 after purchasing an additional 270 shares during the period. Institutional investors own 96.09% of the company’s stock.

About KB Home

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.