Foster & Motley Inc. Invests $682,000 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 shares of KB Home (NYSE:KBH - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 11,738 shares of the construction company's stock, valued at approximately $682,000.

Other large investors have also added to or reduced their stakes in the company. Wealth Enhancement Advisory Services LLC lifted its stake in shares of KB Home by 3.5% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 23,944 shares of the construction company's stock worth $1,392,000 after buying an additional 819 shares during the last quarter. Principal Financial Group Inc. lifted its stake in shares of KB Home by 0.4% during the 1st quarter. Principal Financial Group Inc. now owns 208,222 shares of the construction company's stock worth $12,102,000 after buying an additional 902 shares during the last quarter. Bank of New York Mellon Corp lifted its stake in shares of KB Home by 0.9% during the 1st quarter. Bank of New York Mellon Corp now owns 763,666 shares of the construction company's stock worth $44,384,000 after buying an additional 6,856 shares during the last quarter. SG Americas Securities LLC lifted its stake in shares of KB Home by 11.5% during the 1st quarter. SG Americas Securities LLC now owns 10,252 shares of the construction company's stock worth $596,000 after buying an additional 1,057 shares during the last quarter. Finally, GAMMA Investing LLC lifted its stake in shares of KB Home by 64.3% during the 1st quarter. GAMMA Investing LLC now owns 1,658 shares of the construction company's stock worth $96,000 after buying an additional 649 shares during the last quarter. Institutional investors and hedge funds own 96.09% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently commented on KBH. Bank of America lowered their price target on shares of KB Home from $58.00 to $54.00 and set a "neutral" rating on the stock in a research report on Tuesday, June 24th. Wells Fargo & Company reaffirmed an "underweight" rating and set a $52.00 price target (down from $53.00) on shares of KB Home in a report on Tuesday, June 24th. Keefe, Bruyette & Woods cut their target price on shares of KB Home from $65.00 to $58.00 and set a "market perform" rating on the stock in a research report on Thursday, June 26th. UBS Group cut 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, Evercore ISI reduced their price objective on shares of KB Home from $77.00 to $70.00 and set an "outperform" rating on the stock in a research note on Tuesday, June 24th. One analyst has rated the stock with a sell rating, eight have issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $66.14.

Insider Transactions at KB Home

In other KB Home news, COO Robert V. Mcgibney sold 14,000 shares of the company's stock in a transaction dated Tuesday, July 15th. The shares were 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Arthur Reginald Collins sold 5,000 shares of the company's stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $54.38, for a total transaction of $271,900.00. Following the sale, the director directly owned 10,262 shares in the company, valued at approximately $558,047.56. This trade represents a 32.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. 3.89% of the stock is currently owned by insiders.

KB Home Stock Up 2.1%

KBH stock traded up $1.20 during midday trading on Tuesday, reaching $59.34. 729,053 shares of the company's stock traded hands, compared to its average volume of 1,489,547. The company has a market cap of $4.04 billion, a price-to-earnings ratio of 7.86, a P/E/G ratio of 4.60 and a beta of 1.34. The firm's fifty day moving average price is $53.99 and its 200-day moving average price is $57.19. The company has a quick ratio of 0.60, a current ratio of 5.83 and a debt-to-equity ratio of 0.47. 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 posted its earnings results 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. KB Home had a net margin of 8.47% and a return on equity of 14.02%. The firm had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.51 billion. During the same quarter in the prior year, the business posted $2.15 EPS. The business's revenue was down 10.5% compared to the same quarter last year. As a group, sell-side analysts forecast that KB Home will post 8.42 earnings per share for the current fiscal year.

KB Home Announces Dividend

The business 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 1.7%. The ex-dividend date of this dividend is Thursday, August 7th. KB Home's payout ratio is 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.