Bank of America Corp DE Sells 166,942 Shares of KB Home $KBH

Key Points

• Bank of America cut its KB Home stake by 21.7%, selling 166,942 shares during the first quarter and retaining 600,995 shares worth approximately $31.1 million. Institutional investors collectively own 96.09% of the company.
• Analyst sentiment remains cautious, with 11 Hold ratings, four Buys and one Sell; KB Home has an average price target of $60.17 versus a recent share price of $56.02.
• KB Home’s latest quarterly results showed weakening performance: earnings of $0.43 per share missed estimates, while revenue fell 27.3% year over year. The company continues to pay a quarterly dividend of $0.25, representing a 1.8% yield.

Bank of America Corp DE reduced its stake in shares of KB Home (NYSE:KBH - Free Report) by 21.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 600,995 shares of the construction company's stock after selling 166,942 shares during the quarter. Bank of America Corp DE owned about 0.96% of KB Home worth $31,102,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of KBH. Edgestream Partners L.P. increased its stake in shares of KB Home by 57.7% in the 1st quarter. Edgestream Partners L.P. now owns 14,358 shares of the construction company's stock valued at $743,000 after buying an additional 5,255 shares during the period. Amundi bought a new position in KB Home in the first quarter valued at about $313,000. California State Teachers Retirement System boosted its holdings in KB Home by 26.8% in the first quarter. California State Teachers Retirement System now owns 77,299 shares of the construction company's stock valued at $4,000,000 after acquiring an additional 16,352 shares during the last quarter. Readystate Asset Management LP acquired a new stake in KB Home in the first quarter worth about $2,250,000. Finally, Royal Bank of Canada increased its position in KB Home by 4.6% in the first quarter. Royal Bank of Canada now owns 64,708 shares of the construction company's stock worth $3,350,000 after purchasing an additional 2,821 shares during the period. Institutional investors and hedge funds own 96.09% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have issued reports on KBH shares. Zacks Research upgraded shares of KB Home from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. Wells Fargo & Company boosted their price target on shares of KB Home from $50.00 to $52.00 and gave the stock an "underweight" rating in a research note on Wednesday, June 24th. Barclays increased their price objective on shares of KB Home from $56.00 to $57.00 and gave the company an "overweight" rating in a report on Thursday, June 25th. Weiss Ratings raised shares of KB Home from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, July 13th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $53.00 target price on shares of KB Home in a report on Wednesday, June 24th. Four research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, KB Home presently has an average rating of "Hold" and an average target price of $60.17.

Insider Buying and Selling at KB Home

In related news, Director Arthur Reginald Collins sold 4,000 shares of the business's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total value of $227,840.00. Following the sale, the director directly owned 9,157 shares of the company's stock, valued at approximately $521,582.72. The trade was a 30.40% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Albert Z. Praw sold 22,015 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was 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 approximately $6,108,439.40. The trade was a 17.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 4.69% of the stock is owned by corporate insiders.

KB Home Trading Down 0.5%

NYSE:KBH opened at $56.02 on Friday. KB Home has a 1 year low of $44.03 and a 1 year high of $68.71. The stock has a 50-day moving average price of $56.66 and a two-hundred day moving average price of $55.39. The stock has a market cap of $3.43 billion, a price-to-earnings ratio of 19.52, a PEG ratio of 9.30 and a beta of 1.35.

KB Home (NYSE:KBH - Get Free Report) last released its quarterly earnings results on Tuesday, June 23rd. The construction company reported $0.43 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.01). The business had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.09 billion. KB Home had a return on equity of 7.67% and a net margin of 4.94%.The company's revenue for the quarter was down 27.3% compared to the same quarter last year. During the same period in the prior year, the business earned $1.50 EPS. Sell-side analysts forecast that KB Home will post 3.3 earnings per share for the current year.

KB Home Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Thursday, August 6th. KB Home's dividend payout ratio is 34.84%.

KB Home Company Profile

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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