KB Home (NYSE:KBH) Stock Has Average Price Target of $53.08 According to Brokerages

Key Points

• Analysts have a consensus “Hold” rating on KB Home, with four sells, eight holds and four buys. The average 12-month price target is $53.08, although several firms recently lowered their targets.
• KB Home’s latest quarterly earnings beat estimates, with adjusted earnings of $1.05 per share versus the $0.88 consensus, while revenue of $1.30 billion was flat with expectations but declined 20% year over year.
• The company declared a quarterly dividend of $0.25 per share, equivalent to a $1.00 annualized payout and a 2.4% yield. Recent insider activity was negative, with a director and an executive vice president selling shares.

KB Home (NYSE:KBH - Get Free Report) has earned an average recommendation of "Hold" from the sixteen brokerages that are covering the stock, Marketbeat reports. Four investment analysts have rated the stock with a sell recommendation, eight have given a hold recommendation and four have given a buy recommendation to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $53.08.

Several research analysts have recently commented on the stock. Barclays decreased their price target on shares of KB Home from $57.00 to $49.00 and set an "overweight" rating for the company in a report on Wednesday, September 23rd. The Goldman Sachs Group set a $56.00 price objective on shares of KB Home in a research report on Monday. Wells Fargo & Company dropped their price objective on shares of KB Home from $52.00 to $50.00 and set an "underweight" rating on the stock in a research note on Friday, September 11th. Wall Street Zen cut shares of KB Home from a "hold" rating to a "sell" rating in a report on Saturday, October 3rd. Finally, Evercore set a $59.00 target price on shares of KB Home in a report on Wednesday, September 23rd.

KB Home Price Performance

KB Home stock opened at $42.24 on Wednesday. The company has a market cap of $2.57 billion, a PE ratio of 11.90, a P/E/G ratio of 2.16 and a beta of 1.34. The company has a fifty day moving average price of $50.90 and a two-hundred day moving average price of $52.51. KB Home has a 12 month low of $41.27 and a 12 month high of $67.57.

KB Home (NYSE:KBH - Get Free Report) last released its earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share 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 firm had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same quarter in the previous year, the firm earned $1.61 earnings per share. The firm's revenue for the quarter was down 20.0% compared to the same quarter last year. Equities research analysts anticipate that KB Home will post 3.25 earnings per share for the current year.

KB Home Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Thursday, November 12th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $1.00 annualized dividend and a dividend yield of 2.4%. KB Home's dividend payout ratio is 28.17%.

Insider Buying and Selling

In related news, Director Arthur Collins sold 4,000 shares of the firm's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $56.96, for a total value of $227,840.00. Following the sale, the director owned 9,157 shares of the company's stock, valued at approximately $521,582.72. This trade represents a 30.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Albert Z. Praw sold 22,015 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total value of $1,292,280.50. Following the transaction, the executive vice president owned 104,062 shares of the company's stock, valued at $6,108,439.40. This represents a 17.46% decrease in their position. The SEC filing for this sale provides additional information. 4.69% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On KB Home

Several large investors have recently added to or reduced their stakes in the stock. Eastern Bank acquired a new position in shares of KB Home during the second quarter valued at $26,000. Bessemer Group Inc. raised its stake in shares of KB Home by 80.0% during the first 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. Ameritas Advisory Services LLC bought a new stake in shares of KB Home during the second quarter valued at about $46,000. Polaris Financial Partners acquired a new stake in KB Home in the third quarter worth about $43,000. Finally, Integrated Wealth Concepts LLC acquired a new stake in KB Home in the second quarter worth about $73,000. 96.09% of the stock is owned by institutional investors and hedge funds.

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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