KB Home (NYSE:KBH) Given Average Recommendation of "Hold" by Brokerages

Key Points

• KB Home has an average “Hold” rating from 16 analysts: 11 holds, four buys and one sell. The average 12-month price target is $60.17.
• The company narrowly missed quarterly earnings expectations, reporting $0.43 EPS versus $0.44 forecast, while revenue of $1.11 billion exceeded estimates; revenue declined 27.3% year over year.
• KB Home maintains a quarterly dividend of $0.25, equivalent to a 1.8% yield, while insiders recently sold shares and institutional investors own 96.09% of the stock.

KB Home (NYSE:KBH - Get Free Report) has earned an average recommendation of "Hold" from the sixteen research firms that are currently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, eleven have assigned a hold recommendation and four have assigned a buy recommendation to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $60.1667.

Several research firms have recently commented on KBH. Citizens Jmp restated a "market outperform" rating and set a $77.00 price target on shares of KB Home in a research report on Wednesday, June 24th. Barclays boosted their price objective on KB Home from $56.00 to $57.00 and gave the company an "overweight" rating in a report on Thursday, June 25th. Truist Financial raised their target price on KB Home from $50.00 to $56.00 and gave the company a "hold" rating in a report on Wednesday, June 24th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $53.00 target price on shares of KB Home in a research report on Wednesday, June 24th. Finally, Wall Street Zen upgraded shares of KB Home from a "sell" rating to a "hold" rating in a research note on Saturday, June 27th.

KB Home Stock Performance

Shares of KBH stock opened at $55.67 on Tuesday. The firm's 50 day moving average price is $56.91 and its 200-day moving average price is $55.25. KB Home has a one year low of $44.03 and a one year high of $68.71. The firm has a market cap of $3.41 billion, a P/E ratio of 19.40, a P/E/G ratio of 9.18 and a beta of 1.35.

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

KB Home Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, August 6th. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. KB Home's dividend payout ratio (DPR) is presently 34.84%.

Insider Buying and Selling

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

Institutional Trading of KB Home

Large investors have recently modified their holdings of the stock. California State Teachers Retirement System boosted its holdings in KB Home by 5,315.4% in the second quarter. California State Teachers Retirement System now owns 4,186,082 shares of the construction company's stock valued at $262,007,000 after purchasing an additional 4,108,783 shares during the period. Ameritas Advisory Services LLC purchased a new stake in KB Home during the 2nd quarter worth about $46,000. HB Wealth Management LLC purchased a new stake in KB Home during the 2nd quarter worth about $252,000. AlphaGrep UK Ltd acquired a new stake in KB Home in the 2nd quarter valued at about $325,000. Finally, Odyssean LLC acquired a new stake in KB Home in the 2nd quarter valued at about $278,000. Hedge funds and other institutional investors own 96.09% of the company's stock.

About KB Home

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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