Canada Pension Plan Investment Board Makes New Investment in KB Home $KBH

Key Points

• Canada Pension Plan Investment Board acquired 67,700 KB Home shares worth approximately $4.24 million, giving it a 0.11% stake. Institutional investors and hedge funds collectively own 96.09% of the company.
• Analyst sentiment remains neutral, with a consensus “Hold” rating and an average price target of $60.17; four analysts rate the stock Buy, 11 Hold, and one Sell.
• KB Home’s latest quarterly earnings fell short of estimates, with EPS of $0.43 versus $0.44 expected, while revenue declined 27.3% year over year to $1.11 billion. The company maintains a quarterly dividend of $0.25 per share, yielding about 1.8% annually.

Canada Pension Plan Investment Board acquired a new stake in KB Home (NYSE:KBH - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 67,700 shares of the construction company's stock, valued at approximately $4,237,000. Canada Pension Plan Investment Board owned about 0.11% of KB Home at the end of the most recent quarter.

Several other large investors have also modified their holdings of the company. Great Lakes Advisors LLC purchased a new position in KB Home during the 2nd quarter worth $4,470,000. International Assets Investment Management LLC purchased a new stake in shares of KB Home in the fourth quarter valued at about $4,232,000. Fifth Third Bancorp raised its holdings in shares of KB Home by 2,016.1% in the first quarter. Fifth Third Bancorp now owns 24,864 shares of the construction company's stock valued at $1,287,000 after buying an additional 23,689 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of KB Home during the fourth quarter worth about $1,292,000. Finally, 1492 Capital Management LLC acquired a new stake in shares of KB Home during the first quarter worth about $3,038,000. 96.09% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on KBH. Citizens Jmp reissued a "market outperform" rating and set a $77.00 price target on shares of KB Home in a report on Wednesday, June 24th. Zacks Research raised KB Home from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 25th. Barclays lifted their target price on KB Home from $56.00 to $57.00 and gave the company an "overweight" rating in a research note on Thursday, June 25th. Wells Fargo & Company boosted 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. Finally, Weiss Ratings upgraded KB Home from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday, August 19th. Four research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $60.17.

Insider Buying and Selling

In related news, Director Arthur Reginald Collins sold 4,000 shares of the firm's stock in a transaction that occurred 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 approximately $521,582.72. This trade represents a 30.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Albert Z. Praw sold 22,015 shares of KB Home stock in a transaction that occurred 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 sale, the executive vice president directly owned 104,062 shares of the company's stock, valued at $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 currently owned by company insiders.

KB Home Trading Up 0.1%

KBH stock opened at $54.91 on Monday. The firm has a 50 day moving average of $57.07 and a 200-day moving average of $55.10. The company has a market cap of $3.37 billion, a price-to-earnings ratio of 19.13, a PEG ratio of 9.10 and a beta of 1.35. KB Home has a 12-month low of $44.03 and a 12-month high of $68.71.

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

KB Home Dividend Announcement

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

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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