Bank of New York Mellon Corp Makes New Investment in KB Home $KBH

Key Points

• Bank of New York Mellon Corp acquired 572,574 KB Home shares worth approximately $35.8 million, giving it about a 0.93% stake. Institutional investors collectively own 96.09% of the company.
• KB Home reported weak quarterly results, with EPS of $0.43 versus $0.44 expected and revenue down 27.3% year over year to $1.11 billion. The company nevertheless maintains a quarterly dividend of $0.25, representing a 1.8% yield.
• Analysts have a consensus “Hold” rating and an average price target of $60.17, while two insiders recently sold shares, reducing their respective holdings.

Bank of New York Mellon Corp bought a new position in KB Home (NYSE:KBH - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 572,574 shares of the construction company's stock, valued at approximately $35,837,000. Bank of New York Mellon Corp owned approximately 0.93% of KB Home at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in the company. Bessemer Group Inc. raised its holdings in shares of KB Home by 80.0% in the 1st quarter. Bessemer Group Inc. now owns 495 shares of the construction company's stock worth $26,000 after purchasing an additional 220 shares in the last quarter. Eastern Bank bought a new stake in KB Home during the second quarter worth approximately $26,000. Parkside Financial Bank & Trust boosted its holdings in KB Home by 73.1% during the fourth quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company's stock worth $33,000 after buying an additional 250 shares in the last quarter. Fulcrum Asset Management LLP acquired a new position in KB Home in the third quarter worth approximately $36,000. Finally, Rothschild Investment LLC grew its position in 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 buying an additional 653 shares during the last quarter. 96.09% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other KB Home news, Director Arthur Reginald Collins sold 4,000 shares of KB Home stock in a transaction 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 sale, the director owned 9,157 shares in the company, valued at $521,582.72. The trade was a 30.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Albert Z. Praw sold 22,015 shares of the business'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 sale, the executive vice president directly owned 104,062 shares in the company, valued at $6,108,439.40. This trade represents a 17.46% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.69% of the stock is owned by insiders.

KB Home Price Performance

Shares of KB Home stock opened at $54.91 on Friday. The company has a market cap of $3.37 billion, a PE ratio of 19.13, a price-to-earnings-growth ratio of 9.07 and a beta of 1.35. The firm has a fifty day moving average price of $57.07 and a two-hundred day moving average price of $55.14. KB Home has a fifty-two week low of $44.03 and a fifty-two week high of $68.71.

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

KB Home Announces Dividend

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

Analyst Upgrades and Downgrades

KBH has been the subject of a number of research reports. Royal Bank Of Canada restated a "sector perform" rating and set a $53.00 price objective on shares of KB Home in a research report on Wednesday, June 24th. Wells Fargo & Company upped their target price on KB Home from $50.00 to $52.00 and gave the company an "underweight" rating in a report on Wednesday, June 24th. Zacks Research raised shares of KB Home from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 25th. Citigroup restated a "market outperform" rating on shares of KB Home in a report on Wednesday, June 17th. Finally, Truist Financial boosted their price objective on shares of KB Home from $50.00 to $56.00 and gave the company a "hold" rating in a research report on Wednesday, June 24th. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, KB Home presently has a consensus rating of "Hold" and a consensus price target of $60.17.

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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