BlackRock Inc. Takes Position in KB Home $KBH

Key Points

• BlackRock acquired 9.88 million KB Home shares valued at approximately $618.5 million, giving it a 16.12% stake. Institutional investors collectively own 96.09% of the company.
• KB Home’s latest quarterly results fell slightly short of expectations, with EPS of $0.43 versus $0.44 expected and revenue down 27.3% year over year to $1.11 billion.
• The company declared a quarterly dividend of $0.25, equivalent to $1.00 annually and a 1.8% yield. Analysts have a consensus “Hold” rating and an average price target of $60.17, compared with the stock’s $55.45 opening price.

BlackRock Inc. purchased a new position in KB Home (NYSE:KBH - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 9,881,598 shares of the construction company's stock, valued at approximately $618,489,000. BlackRock Inc. owned approximately 16.12% of KB Home at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. State Street Corp increased its stake in KB Home by 3.1% in the 2nd quarter. State Street Corp now owns 3,503,159 shares of the construction company's stock worth $185,562,000 after buying an additional 106,926 shares during the period. Freestone Grove Partners LP acquired a new stake in KB Home in the 3rd quarter valued at about $111,050,000. Invesco Ltd. lifted its holdings in KB Home by 1.4% during the 3rd quarter. Invesco Ltd. now owns 1,400,892 shares of the construction company's stock worth $89,153,000 after buying an additional 19,330 shares in the last quarter. Bank of America Corp DE raised its stake in shares of KB Home by 36.4% in the third quarter. Bank of America Corp DE now owns 1,033,287 shares of the construction company's stock valued at $65,758,000 after acquiring an additional 275,965 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its stake in shares of KB Home by 102.4% in the 4th quarter. Goldman Sachs Group Inc. now owns 932,178 shares of the construction company's stock valued at $52,584,000 after buying an additional 471,598 shares during the period. Hedge funds and other institutional investors own 96.09% of the company's stock.

KB Home Stock Up 0.1%

Shares of NYSE KBH opened at $55.45 on Monday. KB Home has a fifty-two week low of $44.03 and a fifty-two week high of $68.71. The business has a 50 day moving average price of $56.86 and a two-hundred day moving average price of $55.28. The firm has a market cap of $3.40 billion, a PE ratio of 19.32, a price-to-earnings-growth ratio of 9.18 and a beta of 1.35.

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

KB Home Dividend Announcement

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

Analyst Upgrades and Downgrades

KBH has been the topic of several analyst reports. Citizens Jmp reaffirmed a "market outperform" rating and issued a $77.00 target price on shares of KB Home in a report on Wednesday, June 24th. Wells Fargo & Company upped their price target on shares of KB Home from $50.00 to $52.00 and gave the stock an "underweight" rating in a research report on Wednesday, June 24th. Barclays raised their price objective on KB Home from $56.00 to $57.00 and gave the stock an "overweight" rating in a report on Thursday, June 25th. Zacks Research raised shares of KB Home from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 25th. Finally, Wall Street Zen raised KB Home from a "sell" rating to a "hold" rating in a research report on Saturday, June 27th. Four investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $60.17.

Insiders Place Their Bets

In other KB Home news, EVP Albert Z. Praw sold 22,015 shares of the 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 transaction, 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 position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Arthur Reginald Collins sold 4,000 shares of the firm'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 transaction, the director directly owned 9,157 shares of the company's stock, valued at approximately $521,582.72. This represents a 30.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 4.69% of the company's stock.

KB Home 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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