Donald Smith & CO. Inc. Sells 54,026 Shares of KB Home (NYSE:KBH)

Key Points

• Donald Smith & CO. Inc. reduced its stake in KB Home by 26.0%, selling 54,026 shares, leaving it with 153,659 shares valued at approximately $8.9 million.
• In the first quarter, other institutional investors, including Harbor Capital Advisors Inc. and Sachetta LLC, significantly increased their positions in KB Home, indicating growing interest among large investors.
• KB Home recently announced a quarterly dividend of $0.25, with a yield of 1.7%, set to be paid on August 21, reflecting a payout ratio of 13.25%.

Donald Smith & CO. Inc. trimmed its stake in KB Home (NYSE:KBH - Free Report) by 26.0% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 153,659 shares of the construction company's stock after selling 54,026 shares during the period. Donald Smith & CO. Inc. owned 0.21% of KB Home worth $8,931,000 at the end of the most recent reporting period.

A number of other institutional investors have also bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of KB Home by 0.6% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 37,019 shares of the construction company's stock valued at $2,433,000 after buying an additional 206 shares during the period. CWM LLC grew its position in KB Home by 11.8% during the 1st quarter. CWM LLC now owns 2,007 shares of the construction company's stock worth $117,000 after purchasing an additional 212 shares during the last quarter. Vista Investment Management grew its position in KB Home by 4.4% during the 4th quarter. Vista Investment Management now owns 5,097 shares of the construction company's stock worth $335,000 after purchasing an additional 215 shares during the last quarter. DekaBank Deutsche Girozentrale lifted its stake in shares of KB Home by 1.7% in the 1st quarter. DekaBank Deutsche Girozentrale now owns 12,854 shares of the construction company's stock worth $729,000 after acquiring an additional 221 shares during the period. Finally, Manchester Capital Management LLC raised its position in KB Home by 30.1% during the first quarter. Manchester Capital Management LLC now owns 955 shares of the construction company's stock worth $56,000 after acquiring an additional 221 shares during the last quarter. Hedge funds and other institutional investors own 96.09% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Keefe, Bruyette & Woods lowered 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 report on Thursday, June 26th. Wells Fargo & Company reiterated an "underweight" rating and set a $52.00 price objective (down from $53.00) on shares of KB Home in a research note on Tuesday, June 24th. Barclays set a $49.00 price objective on shares of KB Home and gave the stock an "equal weight" rating in a research note on Tuesday, June 24th. UBS Group reduced their target price on shares of KB Home from $86.00 to $80.00 and set a "buy" rating on the stock in a research report on Tuesday, June 24th. Finally, Wall Street Zen raised shares of KB Home from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. One 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. Based on data from MarketBeat, KB Home currently has a consensus rating of "Hold" and an average price target of $66.14.

Insider Transactions at KB Home

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

KB Home Stock Up 4.0%

KBH traded up $2.45 during midday trading on Wednesday, hitting $63.75. 1,765,560 shares of the company's stock traded hands, compared to its average volume of 1,494,741. The company has a market cap of $4.34 billion, a PE ratio of 8.44, a price-to-earnings-growth ratio of 4.72 and a beta of 1.34. The stock's fifty day simple moving average is $54.91 and its 200-day simple moving average is $56.92. The company has a debt-to-equity ratio of 0.47, a current ratio of 5.83 and a quick ratio of 0.60. KB Home has a one year low of $48.90 and a one year high of $89.70.

KB Home (NYSE:KBH - Get Free Report) last announced its quarterly earnings data on Monday, June 23rd. The construction company reported $1.50 earnings per share (EPS) for the quarter, topping the consensus estimate 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 quarterly revenue was down 10.5% on a year-over-year basis. During the same quarter last year, the company posted $2.15 earnings per share. As a group, equities analysts anticipate 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. Investors of record on Thursday, August 7th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Thursday, August 7th. KB Home's payout ratio 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.