EMG Holdings L.P. Invests $4.02 Million in KB Home $KBH

Key Points

• EMG Holdings L.P. initiated a $4.02 million position in KB Home during the first quarter, purchasing 77,657 shares and making the stock 1.0% of its portfolio. Institutional investors and hedge funds collectively own 96.09% of KB Home.
• Analyst sentiment remains mixed but centers on a “Hold” consensus, with a consensus price target of $60.17. Recent target prices range from $53 to $77, including upgrades from Truist Financial and Barclays.
• KB Home’s latest quarter showed pressure on profitability: EPS was $0.43 versus the $0.44 estimate, while revenue fell 27.3% year over year to $1.11 billion. The company maintained a quarterly dividend of $0.25, equivalent to a 1.8% yield.

EMG Holdings L.P. bought a new stake in KB Home (NYSE:KBH - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 77,657 shares of the construction company's stock, valued at approximately $4,019,000. KB Home accounts for 1.0% of EMG Holdings L.P.'s portfolio, making the stock its 11th biggest position. EMG Holdings L.P. owned 0.12% of KB Home as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of the business. Deprince Race & Zollo Inc. lifted its position in shares of KB Home by 13.1% during the 4th quarter. Deprince Race & Zollo Inc. now owns 1,054,280 shares of the construction company's stock worth $59,472,000 after buying an additional 122,457 shares during the last quarter. International Assets Investment Management LLC purchased a new position in shares of KB Home in the 4th quarter valued at $4,232,000. M&T Bank Corp raised its stake in KB Home by 673.5% during the 4th quarter. M&T Bank Corp now owns 49,046 shares of the construction company's stock worth $2,767,000 after acquiring an additional 42,705 shares in the last quarter. Aberdeen Group plc raised its stake in KB Home by 26.2% during the 4th quarter. Aberdeen Group plc now owns 136,526 shares of the construction company's stock worth $7,701,000 after acquiring an additional 28,381 shares in the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in KB Home in the fourth quarter valued at $1,292,000. 96.09% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Truist Financial upped their price objective on shares of KB Home from $50.00 to $56.00 and gave the company a "hold" rating in a research note on Wednesday, June 24th. Citizens Jmp reiterated a "market outperform" rating and set a $77.00 target price on shares of KB Home in a research report on Wednesday, June 24th. Zacks Research raised KB Home from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Barclays upped their target price on KB Home from $56.00 to $57.00 and gave the company an "overweight" rating in a research report on Thursday, June 25th. Finally, Royal Bank Of Canada restated a "sector perform" rating and set a $53.00 price target on shares of KB Home in a research note on Wednesday, June 24th. Four analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, KB Home presently has a consensus rating of "Hold" and a consensus price target of $60.17.

KB Home Stock Down 1.3%

NYSE KBH opened at $56.30 on Friday. The firm has a market cap of $3.45 billion, a P/E ratio of 19.62, a P/E/G ratio of 9.46 and a beta of 1.34. KB Home has a 52-week low of $44.03 and a 52-week high of $68.71. The business's 50-day moving average price is $55.18 and its 200 day moving average price is $55.68.

KB Home (NYSE:KBH - Get Free Report) last posted its quarterly earnings data on Tuesday, June 23rd. The construction company reported $0.43 EPS 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 company had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.09 billion. During the same period in the prior year, the company earned $1.50 earnings per share. The firm's revenue was down 27.3% on a year-over-year basis. As a group, analysts anticipate that KB Home will post 3.3 earnings per share for the current year.

KB Home Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Thursday, August 6th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Thursday, August 6th. KB Home's dividend payout ratio (DPR) is 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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