Cetera Investment Advisers Purchases 14,798 Shares of KB Home (NYSE:KBH)

Key Points

• Cetera Investment Advisers increased its stake in KB Home by 62.8% during the first quarter, owning approximately 0.05% of the company valued at $2.23 million.
• KB Home reported a net revenue of $1.53 billion for the quarter and earnings per share of $1.50, surpassing the consensus estimate.
• The company announced a quarterly dividend of $0.25, equating to an annualized yield of 1.7%, with the dividend payout ratio currently at 13.25%.

Cetera Investment Advisers raised its holdings in shares of KB Home (NYSE:KBH - Free Report) by 62.8% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 38,354 shares of the construction company's stock after acquiring an additional 14,798 shares during the quarter. Cetera Investment Advisers owned approximately 0.05% of KB Home worth $2,229,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in KBH. Two Sigma Advisers LP grew its stake in shares of KB Home by 4,408.6% during the 4th quarter. Two Sigma Advisers LP now owns 523,000 shares of the construction company's stock worth $34,372,000 after acquiring an additional 511,400 shares in the last quarter. First Trust Advisors LP grew its stake in shares of KB Home by 61.2% in the fourth quarter. First Trust Advisors LP now owns 1,327,809 shares of the construction company's stock valued at $87,264,000 after buying an additional 503,895 shares in the last quarter. Two Sigma Investments LP grew its stake in shares of KB Home by 1,136.2% in the fourth quarter. Two Sigma Investments LP now owns 423,341 shares of the construction company's stock valued at $27,822,000 after buying an additional 389,097 shares in the last quarter. Voloridge Investment Management LLC bought a new position in shares of KB Home in the fourth quarter valued at $19,526,000. Finally, Lansforsakringar Fondforvaltning AB publ bought a new position in shares of KB Home in the fourth quarter valued at $11,543,000. 96.09% of the stock is owned by institutional investors.

Insiders Place Their Bets

In other news, Director Arthur Reginald Collins sold 5,000 shares of KB Home stock in a transaction on Friday, May 16th. The stock was sold at an average price of $54.38, for a total transaction of $271,900.00. Following the completion of the sale, the director owned 10,262 shares of the company's stock, valued at approximately $558,047.56. This trade represents a 32.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Robert V. Mcgibney sold 14,000 shares of the company's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $53.52, for a total transaction of $749,280.00. Following the sale, the chief operating officer directly owned 78,345 shares of the company's stock, valued at $4,193,024.40. This represents a 15.16% decrease in their position. The disclosure for this sale can be found here. 3.89% of the stock is currently owned by company insiders.

KB Home Stock Performance

Shares of KBH traded up $1.65 during midday trading on Tuesday, reaching $60.45. 360,657 shares of the stock were exchanged, compared to its average volume of 1,480,745. KB Home has a twelve month low of $48.90 and a twelve month high of $89.70. The company has a quick ratio of 0.60, a current ratio of 5.83 and a debt-to-equity ratio of 0.47. The company has a market cap of $4.11 billion, a P/E ratio of 8.01, a PEG ratio of 4.79 and a beta of 1.34. The stock's 50 day simple moving average is $54.72 and its 200 day simple moving average is $56.89.

KB Home (NYSE:KBH - Get Free Report) last posted its earnings results on Monday, June 23rd. The construction company reported $1.50 earnings per share for the quarter, topping analysts' consensus estimates of $1.45 by $0.05. KB Home had a return on equity of 14.02% and a net margin of 8.47%. The company had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.51 billion. During the same quarter last year, the firm earned $2.15 earnings per share. The company's revenue was down 10.5% on a year-over-year basis. On average, sell-side analysts expect that KB Home will post 8.42 earnings per share for the current year.

KB Home Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, August 7th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.7%. KB Home's dividend payout ratio (DPR) is currently 13.25%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on KBH shares. Wells Fargo & Company reissued an "underweight" rating and issued a $52.00 target price (down from $53.00) on shares of KB Home in a research note on Tuesday, June 24th. Barclays set a $49.00 target price on shares of KB Home and gave the company an "equal weight" rating in a research note on Tuesday, June 24th. Wall Street Zen raised shares of KB Home from a "sell" rating to a "hold" rating in a research note on Saturday, July 12th. Evercore ISI decreased their target price on shares of KB Home from $77.00 to $70.00 and set an "outperform" rating for the company in a research note on Tuesday, June 24th. Finally, Keefe, Bruyette & Woods decreased their target price on shares of KB Home from $65.00 to $58.00 and set a "market perform" rating for the company in a research note on Thursday, June 26th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $66.14.

KB Home Profile

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.