KB Home (NYSE:KBH) Earns "Market Outperform" Rating from Citizens Jmp

Key Points

• Citizens JMP reaffirmed its “Market Outperform” rating on KB Home and set a $77 price target, implying approximately 60.8% upside from the prior close.
• KB Home shares fell to $47.88, while the broader analyst consensus remains “Hold” with an average price target of $60.17. The stock is near its 12-month low of $44.03.
• The company’s latest quarterly EPS of $0.43 slightly missed estimates, while revenue declined 27.3% year over year; two insiders also recently sold shares.

KB Home (NYSE:KBH - Get Free Report)'s stock had its "market outperform" rating reaffirmed by equities researchers at Citizens Jmp in a research report issued on Thursday, Benzinga reports. They currently have a $77.00 price objective on the construction company's stock. Citizens Jmp's target price would suggest a potential upside of 60.83% from the company's previous close.

Several other brokerages also recently weighed in on KBH. Weiss Ratings downgraded KB Home from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, September 3rd. Zacks Research raised KB Home from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Wall Street Zen raised shares of KB Home from a "sell" rating to a "hold" rating in a report on Saturday, June 27th. Truist Financial increased their target price on shares of KB Home from $50.00 to $56.00 and gave the stock a "hold" rating in a report on Wednesday, June 24th. Finally, Wells Fargo & Company boosted their target price on shares of KB Home from $50.00 to $52.00 and gave the company an "underweight" rating in a research note on Wednesday, June 24th. Four analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, KB Home currently has an average rating of "Hold" and a consensus target price of $60.17.

KB Home Stock Performance

Shares of KBH stock traded down $1.85 during mid-day trading on Thursday, hitting $47.88. 299,017 shares of the stock traded hands, compared to its average volume of 1,142,601. The firm has a market cap of $2.94 billion, a price-to-earnings ratio of 16.68, a price-to-earnings-growth ratio of 2.58 and a beta of 1.34. KB Home has a twelve month low of $44.03 and a twelve month high of $68.41. The company's 50-day simple moving average is $55.85 and its 200-day simple moving average is $54.35.

KB Home (NYSE:KBH - Get Free Report) last released its earnings results on Tuesday, June 23rd. The construction company reported $0.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.01). KB Home had a return on equity of 7.67% and a net margin of 4.94%.The company had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same quarter in the previous year, the company posted $1.50 EPS. The business's revenue was down 27.3% on a year-over-year basis. Analysts forecast that KB Home will post 3.3 earnings per share for the current year.

Insider Activity

In other news, EVP Albert Z. Praw sold 22,015 shares of KB Home stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the sale, the executive vice president directly owned 104,062 shares in the company, valued at approximately $6,108,439.40. The trade was a 17.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Arthur Collins sold 4,000 shares of the stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $56.96, for a total value of $227,840.00. Following the completion of the sale, the director owned 9,157 shares of the company's stock, valued at $521,582.72. This trade represents a 30.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 4.69% of the company's stock.

Hedge Funds Weigh In On KB Home

Several hedge funds have recently bought and sold shares of KBH. Eastern Bank bought a new position in KB Home in the 2nd quarter worth $26,000. Bessemer Group Inc. boosted its holdings in shares of KB Home by 80.0% in the 1st quarter. Bessemer Group Inc. now owns 495 shares of the construction company's stock valued at $26,000 after buying an additional 220 shares in the last quarter. Parkside Financial Bank & Trust lifted its position in shares of KB Home by 73.1% in the fourth quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company's stock valued at $33,000 after acquiring an additional 250 shares in the last quarter. Fulcrum Asset Management LLP purchased a new position in shares of KB Home during the 3rd quarter worth $36,000. Finally, Ameritas Advisory Services LLC purchased a new stake in KB Home during the 2nd quarter worth about $46,000. Hedge funds and other institutional investors own 96.09% of the company's stock.

KB Home Company Profile

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation's largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.

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