KB Home (NYSE:KBH) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded KB Home from “hold” to “sell,” while the broader analyst consensus remains “hold” with a $54.58 target price.
• KB Home reported quarterly EPS of $1.05, beating estimates of $0.88, but revenue fell 20% year over year to $1.30 billion and earnings declined from $1.61 per share a year earlier.
• Two company insiders sold shares in August, while institutional investors own a substantial 96.09% of KB Home’s stock.

KB Home (NYSE:KBH - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday, Wall Street Zen reports.

Other equities analysts also recently issued reports about the company. Wells Fargo & Company cut their target price on KB Home from $52.00 to $50.00 and set an "underweight" rating on the stock in a research report on Friday, September 11th. Citizens Jmp lowered their price target on KB Home from $77.00 to $70.00 and set a "market outperform" rating for the company in a research report on Wednesday, September 23rd. Evercore set a $59.00 price target on KB Home in a research note on Wednesday, September 23rd. Weiss Ratings raised KB Home from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, September 18th. Finally, Morgan Stanley began coverage on KB Home in a research note on Thursday. They issued an "underweight" rating and a $39.00 price objective for the company. Four investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $54.58.

KB Home Stock Performance

Shares of KBH stock opened at $45.72 on Friday. KB Home has a fifty-two week low of $44.03 and a fifty-two week high of $67.57. The firm has a market capitalization of $2.80 billion, a price-to-earnings ratio of 12.88, a PEG ratio of 2.41 and a beta of 1.34. The stock's 50-day simple moving average is $52.74 and its 200-day simple moving average is $52.98.

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

Insider Activity at KB Home

In related news, Director Arthur Collins sold 4,000 shares of the firm'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 sale, the director owned 9,157 shares in the company, valued at approximately $521,582.72. This trade represents a 30.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Albert Z. Praw sold 22,015 shares of KB Home stock in a transaction on 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 transaction, the executive vice president directly owned 104,062 shares of the company's stock, valued at $6,108,439.40. The trade was a 17.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 4.69% of the company's stock.

Hedge Funds Weigh In On KB Home

Institutional investors and hedge funds have recently modified their holdings of the business. Great Lakes Advisors LLC purchased a new stake in KB Home in the 2nd quarter worth $4,470,000. Bank of America Corp DE acquired a new position in KB Home during the second quarter worth $35,377,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in KB Home during the second quarter valued at $1,609,000. Donald Smith & CO. Inc. purchased a new position in KB Home during the second quarter valued at $108,652,000. Finally, SummitTX Capital L.P. acquired a new stake in shares of KB Home in the first quarter valued at about $1,771,000. Hedge funds and other institutional investors own 96.09% of the company's stock.

KB Home Company Profile

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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