Zacks Research Issues Positive Estimate for KB Home Earnings

Key Points

• Zacks Research raised its FY2028 EPS estimate for KB Home to $5.06 from $5.03, while maintaining a “Hold” rating. The broader analyst consensus also remains “Hold,” with a $52.23 price target.
• KB Home’s latest quarterly EPS of $1.05 exceeded expectations of $0.88, but revenue fell 20% year over year to $1.30 billion and net margin was 4.39%.
• The company declared a quarterly dividend of $0.25 per share, equivalent to a 2.1% yield and a 28.17% payout ratio; institutional investors own 96.09% of the stock.

KB Home (NYSE:KBH - Free Report) - Research analysts at Zacks Research increased their FY2028 EPS estimates for KB Home in a research note issued to investors on Thursday, October 22nd. Zacks Research analyst Team now forecasts that the construction company will earn $5.06 per share for the year, up from their previous estimate of $5.03. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for KB Home's current full-year earnings is $3.26 per share.

KB Home (NYSE:KBH - Get Free Report) last released its quarterly earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.88 by $0.17. KB Home had a net margin of 4.39% and a return on equity of 6.56%. The business had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same period last year, the business earned $1.61 EPS. The business's revenue was down 20.0% on a year-over-year basis.

Several other analysts also recently weighed in on KBH. The Goldman Sachs Group set a $56.00 target price on KB Home in a research note on Monday, October 12th. Wells Fargo & Company cut their price target on KB Home from $50.00 to $42.00 and set an "underweight" rating on the stock in a research note on Friday, October 16th. Weiss Ratings downgraded KB Home from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, October 9th. Evercore set a $59.00 price target on KB Home in a report on Wednesday, September 23rd. Finally, Stonex Financia upgraded KB Home to a "hold" rating in a research note on Thursday, October 15th. Four investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $52.23.

KB Home Price Performance

Shares of KBH stock opened at $47.12 on Monday. The company's fifty day moving average price is $48.78 and its two-hundred day moving average price is $52.10. The firm has a market capitalization of $2.86 billion, a P/E ratio of 13.27, a P/E/G ratio of 2.44 and a beta of 1.34. KB Home has a 12 month low of $40.92 and a 12 month high of $67.57.

Hedge Funds Weigh In On KB Home

Several large investors have recently modified their holdings of KBH. Eastern Bank bought a new stake in KB Home in the second quarter valued at about $26,000. Bessemer Group Inc. raised its stake in 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 buying an additional 220 shares in the last quarter. Mather Group LLC. acquired a new stake in KB Home during the third quarter valued at approximately $34,000. Ameritas Advisory Services LLC bought a new position in KB Home during the 2nd quarter worth approximately $46,000. Finally, Polaris Financial Partners bought a new position in KB Home during the 3rd quarter worth approximately $43,000. Institutional investors own 96.09% of the company's stock.

Insiders Place Their Bets

In other KB Home news, EVP Albert Praw sold 22,015 shares of the firm's 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. This trade represents a 17.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Arthur Collins sold 4,000 shares of the business's stock in a transaction dated 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 sale, the director directly owned 9,157 shares of the company's stock, valued at $521,582.72. The trade was a 30.40% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 4.69% of the company's stock.

KB Home Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Thursday, November 12th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Thursday, November 12th. KB Home's dividend payout ratio is 28.17%.

About KB Home

KB Home NYSE: KBH is a homebuilder that develops and constructs residential communities across the United States. The company primarily builds single-family homes, along with certain attached homes and townhomes, serving first-time, move-up and active-adult buyers.

KB Home offers a range of home designs, floor plans and personalization options, allowing buyers to select features and finishes during the construction process. Its activities generally include land acquisition and development, home construction, sales and customer support, with homes built in both suburban and urban communities.

Founded in 1957, KB Home operates in markets across Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.

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