Bank of America Issues Pessimistic Forecast for KB Home (NYSE:KBH) Stock Price

Key Points

• Bank of America has lowered its price target for KB Home from $67.00 to $62.00, maintaining a "neutral" rating, suggesting a potential upside of 6.99% from the recent stock close.
• Recent reports indicate a mix of ratings for KB Home, with one analyst rating it as Strong Buy and the majority giving it a "Hold" rating, with an average consensus target price of $64.36.
• In a recent earnings report, KB Home exceeded earnings estimates but reported a 7.4% decline in quarterly revenue compared to the same period last year.

KB Home (NYSE:KBH - Get Free Report) had its price objective cut by equities researchers at Bank of America from $67.00 to $62.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the construction company's stock. Bank of America's price objective suggests a potential upside of 6.99% from the stock's previous close.

Other research analysts also recently issued research reports about the company. Keefe, Bruyette & Woods dropped their price target on KB Home from $65.00 to $58.00 and set a "market perform" rating on the stock in a research note on Thursday, June 26th. JPMorgan Chase & Co. dropped their target price on KB Home from $63.00 to $53.00 and set a "neutral" rating on the stock in a report on Monday, September 29th. Wells Fargo & Company increased their price target on KB Home from $50.00 to $60.00 and gave the stock an "underweight" rating in a report on Tuesday, September 2nd. Raymond James Financial increased their price target on KB Home from $65.00 to $72.00 and gave the stock an "outperform" rating in a report on Thursday, September 25th. Finally, Barclays set a $49.00 price target on KB Home and gave the stock an "equal weight" rating in a report on Tuesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $64.36.

KB Home Stock Up 0.6%

Shares of NYSE KBH traded up $0.36 during midday trading on Friday, hitting $57.95. 507,346 shares of the company's stock were exchanged, compared to its average volume of 1,465,853. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.13 and a quick ratio of 0.23. KB Home has a twelve month low of $48.90 and a twelve month high of $85.92. The company has a market cap of $3.94 billion, a PE ratio of 7.66, a P/E/G ratio of 4.92 and a beta of 1.40. The firm's fifty day simple moving average is $63.02 and its 200-day simple moving average is $57.08.

KB Home (NYSE:KBH - Get Free Report) last issued its earnings results on Wednesday, September 24th. The construction company reported $1.61 earnings per share for the quarter, topping the consensus estimate of $1.50 by $0.11. KB Home had a return on equity of 12.91% and a net margin of 7.92%.The business had revenue of $1.62 billion for the quarter, compared to analyst estimates of $1.59 billion. During the same quarter last year, the company earned $2.04 EPS. The business's quarterly revenue was down 7.4% on a year-over-year basis. Research analysts predict that KB Home will post 8.42 EPS for the current fiscal year.

Insider Transactions at KB Home

In other news, COO Robert V. Mcgibney sold 14,000 shares of the company's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $53.52, for a total value of $749,280.00. Following the completion of the sale, the chief operating officer owned 78,345 shares of the company's stock, valued at $4,193,024.40. This represents a 15.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 3.89% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Harbor Capital Advisors Inc. boosted its holdings in KB Home by 73.7% in the first quarter. Harbor Capital Advisors Inc. now owns 608 shares of the construction company's stock valued at $35,000 after purchasing an additional 258 shares during the last quarter. Sachetta LLC boosted its holdings in KB Home by 3,142.9% in the first quarter. Sachetta LLC now owns 681 shares of the construction company's stock valued at $40,000 after purchasing an additional 660 shares during the last quarter. Banque Cantonale Vaudoise purchased a new position in KB Home in the first quarter valued at about $40,000. Byrne Asset Management LLC boosted its holdings in KB Home by 51.8% in the first quarter. Byrne Asset Management LLC now owns 774 shares of the construction company's stock valued at $45,000 after purchasing an additional 264 shares during the last quarter. Finally, BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new position in KB Home in the second quarter valued at about $44,000. Hedge funds and other institutional investors own 96.09% of the company's stock.

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.

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