Foster & Motley Inc. Takes Position in KB Home (NYSE:KBH)

Key Points

• Foster & Motley Inc.  has acquired 11,738 shares of KB Home, valued at approximately $682,000, marking a significant investment in the construction company during the first quarter.
• Several analysts have either lowered their price targets for KB Home or maintained a "hold" rating, with the consensus target price now at $66.14.
• KB Home announced a quarterly dividend of $0.25 per share, which will be paid out on August 21st, representing a 1.8% dividend yield.

Foster & Motley Inc. bought a new position in KB Home (NYSE:KBH - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 11,738 shares of the construction company's stock, valued at approximately $682,000.

Several other institutional investors and hedge funds have also modified their holdings of the business. Harbor Capital Advisors Inc. lifted its holdings in KB Home by 73.7% during the 1st quarter. Harbor Capital Advisors Inc. now owns 608 shares of the construction company's stock worth $35,000 after buying an additional 258 shares in the last quarter. Sachetta LLC lifted its stake in shares of KB Home by 3,142.9% in the 1st quarter. Sachetta LLC now owns 681 shares of the construction company's stock valued at $40,000 after purchasing an additional 660 shares during the period. Banque Cantonale Vaudoise acquired a new position in shares of KB Home in the 1st quarter valued at $40,000. Byrne Asset Management LLC lifted its stake in shares of KB Home by 51.8% in the 1st quarter. Byrne Asset Management LLC now owns 774 shares of the construction company's stock valued at $45,000 after purchasing an additional 264 shares during the period. Finally, UMB Bank n.a. lifted its stake in shares of KB Home by 1,256.9% in the 1st quarter. UMB Bank n.a. now owns 977 shares of the construction company's stock valued at $57,000 after purchasing an additional 905 shares during the period. 96.09% of the stock is owned by institutional investors and hedge funds.

KB Home Stock Up 3.5%

Shares of NYSE:KBH traded up $1.94 during trading on Friday, hitting $57.20. 1,486,906 shares of the company were exchanged, compared to its average volume of 1,481,418. The stock has a market cap of $3.89 billion, a price-to-earnings ratio of 7.58, a P/E/G ratio of 4.60 and a beta of 1.34. KB Home has a fifty-two week low of $48.90 and a fifty-two week high of $89.70. The firm has a fifty day moving average price of $53.86 and a two-hundred day moving average price of $57.33. The company has a current ratio of 5.83, a quick ratio of 0.60 and a debt-to-equity ratio of 0.47.

KB Home (NYSE:KBH - Get Free Report) last posted its quarterly earnings results on Monday, June 23rd. The construction company reported $1.50 earnings per share for the quarter, topping the consensus estimate of $1.45 by $0.05. The firm had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.51 billion. KB Home had a return on equity of 14.02% and a net margin of 8.47%. The business's quarterly revenue was down 10.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.15 EPS. As a group, research 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 disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Thursday, August 7th. KB Home's dividend payout ratio (DPR) is presently 13.25%.

Insider Buying and Selling

In other news, COO Robert V. Mcgibney sold 14,000 shares of the firm'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 sale, the chief operating officer directly owned 78,345 shares of the company's stock, valued at $4,193,024.40. This trade represents a 15.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Arthur Reginald Collins sold 5,000 shares of the firm's stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $54.38, for a total value of $271,900.00. Following the completion of the sale, the director directly owned 10,262 shares of the company's stock, valued at approximately $558,047.56. The trade was a 32.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 3.89% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on KBH shares. Wall Street Zen raised KB Home from a "sell" rating to a "hold" rating in a research note on Saturday, July 12th. Wells Fargo & Company restated an "underweight" rating and set a $52.00 price objective (down previously from $53.00) on shares of KB Home in a report on Tuesday, June 24th. Bank of America decreased their price objective on shares of KB Home from $58.00 to $54.00 and set a "neutral" rating for the company in a report on Tuesday, June 24th. Evercore ISI decreased their price objective on shares of KB Home from $77.00 to $70.00 and set an "outperform" rating for the company in a report on Tuesday, June 24th. Finally, UBS Group decreased their price objective on shares of KB Home from $86.00 to $80.00 and set a "buy" rating for the company in a report on Tuesday, June 24th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, three have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target 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.