KB Home (NYSE:KBH) Shares Gap Down on Disappointing Earnings

KB Home (NYSE:KBH)’s share price gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $61.79, but opened at $56.59. KB Home shares last traded at $57.88, with a volume of 1,193,732 shares trading hands.

The construction company reported $1.49 EPS for the quarter, missing the consensus estimate of $1.56 by ($0.07). The firm had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.51 billion. KB Home had a return on equity of 16.46% and a net margin of 9.45%. The company’s revenue was down 5.2% compared to the same quarter last year. During the same quarter last year, the firm earned $1.76 EPS.

KB Home Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, February 20th. Investors of record on Thursday, February 6th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, February 6th. This represents a $1.00 dividend on an annualized basis and a yield of 1.71%. KB Home’s dividend payout ratio is currently 11.81%.

Analyst Ratings Changes

KBH has been the subject of several recent research reports. Bank of America reduced their target price on shares of KB Home from $67.00 to $62.00 and set a “neutral” rating for the company in a report on Tuesday. UBS Group decreased their price objective on KB Home from $97.00 to $86.00 and set a “buy” rating for the company in a report on Tuesday. Wedbush restated a “neutral” rating and issued a $75.00 target price on shares of KB Home in a research note on Tuesday. Wells Fargo & Company decreased their price target on KB Home from $63.00 to $57.00 and set an “underweight” rating for the company in a report on Tuesday. Finally, Raymond James restated an “outperform” rating and issued a $80.00 price objective (down previously from $93.00) on shares of KB Home in a research report on Tuesday, January 21st. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, KB Home currently has an average rating of “Hold” and a consensus price target of $72.13.

Insider Activity

In related news, CFO Jeff Kaminski sold 27,500 shares of KB Home stock in a transaction on Tuesday, January 28th. The shares were sold at an average price of $68.77, for a total transaction of $1,891,175.00. Following the sale, the chief financial officer now directly owns 34,473 shares in the company, valued at $2,370,708.21. This trade represents a 44.37 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 3.89% of the company’s stock.

Institutional Trading of KB Home

Several hedge funds have recently made changes to their positions in the company. Jones Financial Companies Lllp lifted its stake 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 purchasing an additional 214 shares during the period. Principal Securities Inc. raised its stake in shares of KB Home by 43.6% during the 4th quarter. Principal Securities Inc. now owns 590 shares of the construction company’s stock worth $39,000 after buying an additional 179 shares during the last quarter. Versant Capital Management Inc boosted its position 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 buying an additional 557 shares in the last quarter. Amundi increased its holdings in KB Home by 29.6% during the 4th quarter. Amundi now owns 880 shares of the construction company’s stock valued at $58,000 after acquiring an additional 201 shares in the last quarter. Finally, Wilmington Savings Fund Society FSB acquired a new position in shares of KB Home during the 3rd quarter worth approximately $59,000. Institutional investors and hedge funds own 96.09% of the company’s stock.

KB Home Price Performance

The firm has a market capitalization of $4.18 billion, a PE ratio of 6.91, a P/E/G ratio of 0.90 and a beta of 1.89. The company has a debt-to-equity ratio of 0.42, a current ratio of 5.51 and a quick ratio of 0.83. The company has a 50-day moving average price of $63.99 and a 200-day moving average price of $72.81.

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.