Citigroup Inc. Purchases 12,844 Shares of KB Home $KBH

Key Points

• CitiGroup Inc. increased its holdings in KB Home by 11.0% in Q1, acquiring an additional 12,844 shares, bringing its total to 129,573 shares valued at approximately $7.5 million.
• KB Home reported earnings of $1.50 per share, exceeding the consensus estimate of $1.45, though revenue decreased by 10.5% year-over-year to $1.53 billion.
• The company announced a quarterly dividend of $0.25 per share, yielding 1.6%, with a payout ratio currently at 13.25%.

Citigroup Inc. boosted its holdings in shares of KB Home (NYSE:KBH - Free Report) by 11.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 129,573 shares of the construction company's stock after purchasing an additional 12,844 shares during the period. Citigroup Inc. owned approximately 0.18% of KB Home worth $7,531,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Two Sigma Advisers LP lifted its position in shares of KB Home by 4,408.6% in the 4th quarter. Two Sigma Advisers LP now owns 523,000 shares of the construction company's stock valued at $34,372,000 after acquiring an additional 511,400 shares in the last quarter. First Trust Advisors LP lifted its position in shares of KB Home by 61.2% in the 4th quarter. First Trust Advisors LP now owns 1,327,809 shares of the construction company's stock valued at $87,264,000 after acquiring an additional 503,895 shares in the last quarter. Two Sigma Investments LP lifted its position in shares of KB Home by 1,136.2% in the 4th quarter. Two Sigma Investments LP now owns 423,341 shares of the construction company's stock valued at $27,822,000 after acquiring an additional 389,097 shares in the last quarter. Voloridge Investment Management LLC purchased a new stake in shares of KB Home in the 4th quarter valued at approximately $19,526,000. Finally, Lansforsakringar Fondforvaltning AB publ purchased a new stake in shares of KB Home in the 4th quarter valued at approximately $11,543,000. 96.09% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on KBH. Barclays set a $49.00 price target on shares of KB Home and gave the company an "equal weight" rating in a research report on Tuesday, June 24th. UBS Group reduced their price target on shares of KB Home from $86.00 to $80.00 and set a "buy" rating for the company in a research report on Tuesday, June 24th. Bank of America cut their target price on shares of KB Home from $58.00 to $54.00 and set a "neutral" rating for the company in a research report on Tuesday, June 24th. 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, Wells Fargo & Company reissued an "underweight" rating and set a $52.00 target price (down previously from $53.00) on shares of KB Home in a research note on Tuesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $66.14.

Insider Buying and Selling

In related news, COO Robert V. Mcgibney sold 14,000 shares of KB Home stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $53.52, for a total value of $749,280.00. Following the transaction, the chief operating officer owned 78,345 shares in the company, valued at $4,193,024.40. This trade represents a 15.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 3.89% of the stock is owned by company insiders.

KB Home Stock Up 1.7%

Shares of KB Home stock traded up $1.0350 during midday trading on Tuesday, reaching $63.2450. 1,091,318 shares of the company's stock traded hands, compared to its average volume of 1,490,157. The company has a market cap of $4.30 billion, a price-to-earnings ratio of 8.38, a price-to-earnings-growth ratio of 5.05 and a beta of 1.34. The company's 50 day simple moving average is $55.74 and its 200 day simple moving average is $56.70. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.60 and a current ratio of 5.83. KB Home has a 52 week low of $48.90 and a 52 week high of $89.70.

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

KB Home Dividend Announcement

The firm also recently declared 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 is Thursday, August 7th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.6%. KB Home's dividend payout ratio (DPR) is currently 13.25%.

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.