KB Home (NYSE:KBH) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analysts have a consensus “Hold” rating on KB Home, with 10 hold, four buy, and one sell recommendation among 15 analysts. The average 12-month price target is approximately $59.92.
• KB Home’s latest quarter showed weakening results: earnings per share were $0.43 versus a $0.44 estimate, while revenue fell 27.3% year over year to $1.11 billion.
• The stock opened at $47.08, near its 52-week low, while the company maintained a quarterly dividend of $0.25 per share, equating to a 2.1% annual yield. Two insiders recently sold shares, and institutional investors own 96.09% of the stock.

Shares of KB Home (NYSE:KBH - Get Free Report) have earned an average rating of "Hold" from the fifteen analysts that are presently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, ten have given a hold recommendation and four have given a buy recommendation to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $59.9167.

Several research analysts have commented on the company. Zacks Research raised KB Home from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. Citigroup reaffirmed a "market outperform" rating on shares of KB Home in a research report on Thursday, September 10th. Citizens Jmp reiterated a "market outperform" rating and set a $77.00 price objective on shares of KB Home in a research note on Thursday, September 10th. Truist Financial reduced their target price on shares of KB Home from $56.00 to $55.00 and set a "hold" rating on the stock in a research report on Wednesday. Finally, Wall Street Zen raised shares of KB Home from a "sell" rating to a "hold" rating in a report on Saturday, June 27th.

Insider Activity at KB Home

In related news, Director Arthur Collins sold 4,000 shares of the company's stock in a transaction on Thursday, August 6th. The stock was 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 in the company, valued at $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 is available through this hyperlink. Also, EVP Albert Praw sold 22,015 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $58.70, for a total value 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 $6,108,439.40. This represents a 17.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 4.69% of the company's stock.

Hedge Funds Weigh In On KB Home

Hedge funds and other institutional investors have recently made changes to their positions in the business. Bessemer Group Inc. increased its position 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 acquiring an additional 220 shares during the period. Rockefeller Capital Management L.P. boosted its position in KB Home by 15.4% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,275 shares of the construction company's stock worth $128,000 after acquiring an additional 304 shares during the period. Eastern Bank acquired a new position in KB Home during the 2nd quarter worth $26,000. Intech Investment Management LLC grew its stake in shares of KB Home by 1.2% in the fourth quarter. Intech Investment Management LLC now owns 38,271 shares of the construction company's stock worth $2,159,000 after purchasing an additional 457 shares in the last quarter. Finally, Rothschild Investment LLC grew its stake in shares of KB Home by 391.0% in the fourth quarter. Rothschild Investment LLC now owns 820 shares of the construction company's stock worth $46,000 after purchasing an additional 653 shares in the last quarter. 96.09% of the stock is currently owned by institutional investors and hedge funds.

KB Home Stock Down 3.0%

KBH opened at $47.08 on Friday. KB Home has a 52-week low of $44.03 and a 52-week high of $67.57. The company has a 50 day moving average of $54.45 and a two-hundred day moving average of $53.66. The company has a market cap of $2.89 billion, a P/E ratio of 16.40, a P/E/G ratio of 2.51 and a beta of 1.34.

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). KB Home had a net margin of 4.94% and a return on equity of 7.67%. The business had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.09 billion. During the same quarter in the previous year, the firm posted $1.50 EPS. The business's revenue was down 27.3% compared to the same quarter last year. Research analysts anticipate that KB Home will post 3.27 earnings per share for the current year.

KB Home Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend was Thursday, August 6th. KB Home's dividend payout ratio is 34.84%.

About KB Home

KB Home NYSE: KBH is a homebuilding company that designs, constructs and sells residential properties in the United States. Its offerings primarily include single-family homes, with communities and floor plans intended for first-time buyers, move-up buyers and other owner-occupants. The company also provides homebuyers with opportunities to personalize selected features and finishes through its build-to-order approach.

The company operates in several major housing markets across the United States, including locations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.

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