KB Home (NYSE:KBH) Stock Picked Up by Analysts at Melius Research

Key Points

• Melius Research initiated coverage of KB Home with a “sell” rating and a $43 price target, implying approximately 4.68% downside from the reported $45.11 share price.
• Analyst sentiment is mixed: KB Home has four Buy, nine Hold, and four Sell ratings, resulting in an overall “Hold” consensus and an average price target of $53.08.
• KB Home beat quarterly EPS estimates ($1.05 versus $0.88), but revenue fell 20% year over year to $1.30 billion, while two insiders recently sold shares.

Stock analysts at Melius Research began coverage on shares of KB Home (NYSE:KBH - Get Free Report) in a research note issued on Tuesday, Briefing.com reports. The firm set a "sell" rating and a $43.00 price target on the construction company's stock. Melius Research's price target would indicate a potential downside of 4.68% from the company's current price.

A number of other research analysts also recently issued reports on the company. Citizens Jmp dropped their price target on KB Home from $77.00 to $70.00 and set a "market outperform" rating on the stock in a research note on Wednesday, September 23rd. Citigroup reiterated an "outperform" rating on shares of KB Home in a research note on Wednesday, September 23rd. UBS Group reissued a "buy" rating on shares of KB Home in a report on Wednesday, September 23rd. Morgan Stanley began coverage on shares of KB Home in a research report on Thursday. They set an "underweight" rating and a $39.00 target price on the stock. Finally, Wall Street Zen cut shares of KB Home from a "hold" rating to a "sell" rating in a report on Saturday. Four analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, KB Home presently has an average rating of "Hold" and a consensus price target of $53.08.

KB Home Price Performance

Shares of NYSE:KBH opened at $45.11 on Tuesday. KB Home has a 12 month low of $44.03 and a 12 month high of $67.57. The firm has a market capitalization of $2.77 billion, a P/E ratio of 12.71, a P/E/G ratio of 2.37 and a beta of 1.34. The company's fifty day moving average price is $52.49 and its 200 day moving average price is $52.90.

KB Home (NYSE:KBH - Get Free Report) last released its quarterly earnings data on Tuesday, September 22nd. The construction company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.88 by $0.17. KB Home had a net margin of 4.39% and a return on equity of 6.56%. The company had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter in the prior year, the firm posted $1.61 earnings per share. KB Home's revenue for the quarter was down 20.0% on a year-over-year basis. On average, sell-side analysts anticipate that KB Home will post 3.27 EPS for the current year.

Insider Activity at KB Home

In other KB Home news, Director Arthur Collins sold 4,000 shares of the company's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total transaction of $227,840.00. Following the completion of the transaction, the director owned 9,157 shares in the company, valued at approximately $521,582.72. This represents a 30.40% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, 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 completion of 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 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

A number of large investors have recently modified their holdings of the business. Bessemer Group Inc. increased its stake in 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 purchasing an additional 220 shares in the last quarter. Eastern Bank acquired a new position in shares of KB Home in the second quarter valued at approximately $26,000. Polaris Financial Partners purchased a new position in shares of KB Home during the third quarter valued at approximately $43,000. Ameritas Advisory Services LLC purchased a new position in shares of KB Home during the 2nd quarter worth $46,000. Finally, Integrated Wealth Concepts LLC acquired a new stake in KB Home in the 2nd quarter worth about $73,000. 96.09% of the stock is owned by hedge funds and other institutional investors.

About KB Home

KB Home is a national homebuilder that designs, constructs and sells single-family homes and townhomes. The company offers homes in a range of floor plans, sizes and price points, with options that allow buyers to personalize features and finishes. Its communities typically include amenities such as parks, open spaces and other neighborhood improvements.

Founded in 1957, KB Home is headquartered in Los Angeles, California. The company serves residential markets across the United States, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.

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