KB Home (NYSE:KBH) Reaches New 12-Month Low – What’s Next?

Shares of KB Home (NYSE:KBH) hit a new 52-week low on Friday . The stock traded as low as $58.95 and last traded at $59.14, with a volume of 311805 shares traded. The stock had previously closed at $61.27.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Royal Bank of Canada upgraded shares of KB Home from an “underperform” rating to a “sector perform” rating and dropped their target price for the company from $70.00 to $67.00 in a research report on Friday, January 10th. Seaport Res Ptn upgraded KB Home from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 6th. JPMorgan Chase & Co. reduced their target price on KB Home from $82.00 to $74.50 and set a “neutral” rating for the company in a report on Wednesday, January 15th. Bank of America decreased their target price on KB Home from $76.00 to $71.00 and set a “neutral” rating on the stock in a research report on Monday, January 27th. Finally, Wells Fargo & Company dropped their price target on KB Home from $65.00 to $63.00 and set an “underweight” rating for the company in a research report on Monday, March 10th. Two analysts have rated the stock with a sell rating, eight have given a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $75.21.

KB Home Stock Performance

The company has a current ratio of 5.51, a quick ratio of 0.83 and a debt-to-equity ratio of 0.42. The firm has a market cap of $4.26 billion, a PE ratio of 7.04, a P/E/G ratio of 0.90 and a beta of 1.89. The stock’s 50 day moving average price is $64.22 and its 200 day moving average price is $73.12.

KB Home (NYSE:KBH) last released its quarterly earnings results on Monday, January 13th. The construction company reported $2.52 earnings per share for the quarter, topping analysts’ consensus estimates of $2.44 by $0.08. KB Home had a return on equity of 16.46% and a net margin of 9.45%. The firm had revenue of $2 billion during the quarter, compared to analysts’ expectations of $1.99 billion. During the same quarter in the prior year, the business earned $1.85 EPS. KB Home’s quarterly revenue was up 19.5% compared to the same quarter last year. As a group, equities analysts forecast that KB Home will post 8.42 earnings per share for the current fiscal year.

KB Home Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, February 20th. Shareholders of record on Thursday, February 6th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.68%. The ex-dividend date of this dividend was Thursday, February 6th. KB Home’s dividend payout ratio is currently 11.81%.

Insider Transactions at KB Home

In other news, CFO Jeff Kaminski sold 27,500 shares of KB Home stock in a transaction dated Tuesday, January 28th. The shares were sold at an average price of $68.77, for a total value of $1,891,175.00. Following the completion of the transaction, the chief financial officer now directly owns 34,473 shares of the company’s stock, valued at approximately $2,370,708.21. The trade was a 44.37 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 3.89% of the company’s stock.

Institutional Trading of KB Home

Large investors have recently added to or reduced their stakes in the business. Jones Financial Companies Lllp lifted its holdings in shares of KB Home by 65.6% in the fourth quarter. Jones Financial Companies Lllp now owns 540 shares of the construction company’s stock valued at $36,000 after buying an additional 214 shares during the period. Principal Securities Inc. lifted its holdings in KB Home by 43.6% in the 4th quarter. Principal Securities Inc. now owns 590 shares of the construction company’s stock valued at $39,000 after acquiring an additional 179 shares during the last quarter. Wilmington Savings Fund Society FSB bought a new position in shares of KB Home during the 3rd quarter valued at about $59,000. Banque Cantonale Vaudoise acquired a new position in shares of KB Home in the 3rd quarter worth approximately $61,000. Finally, Versant Capital Management Inc raised its holdings in shares of KB Home by 275.7% in the 4th quarter. Versant Capital Management Inc now owns 759 shares of the construction company’s stock worth $50,000 after purchasing an additional 557 shares in the last quarter. 96.09% of the stock is currently owned by institutional investors and hedge funds.

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.