Freestone Grove Partners LP Acquires Shares of 127,705 KB Home $KBH

Key Points

• Freestone Grove Partners acquired 127,705 KB Home shares worth approximately $7.99 million, while institutional investors and hedge funds collectively own 96.09% of the company.
• Analysts maintain a consensus “Hold” rating with an average price target of $60.17, despite several firms issuing buy or outperform ratings.
• KB Home’s latest quarterly results showed declining performance: EPS fell to $0.43 from $1.50 a year earlier, while revenue declined 27.3% year over year to $1.11 billion; the company continues to pay a $0.25 quarterly dividend.

Freestone Grove Partners LP acquired a new stake in KB Home (NYSE:KBH - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 127,705 shares of the construction company's stock, valued at approximately $7,993,000. Freestone Grove Partners LP owned approximately 0.21% of KB Home at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. Gallagher Fiduciary Advisors LLC purchased a new position in shares of KB Home during the 2nd quarter valued at approximately $431,000. Odyssean LLC purchased a new stake in KB Home in the 2nd quarter worth $278,000. Man Group plc acquired a new position in KB Home during the second quarter worth $4,500,000. Jupiter Topco LLC acquired a new position in KB Home during the second quarter worth $1,791,000. Finally, Canada Pension Plan Investment Board purchased a new position in KB Home during the second quarter valued at $4,237,000. 96.09% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on KBH. Citigroup reiterated a "market outperform" rating on shares of KB Home in a research report on Wednesday, June 17th. UBS Group raised their price target on shares of KB Home from $63.00 to $66.00 and gave the company a "buy" rating in a research note on Wednesday, June 24th. Zacks Research upgraded KB Home from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Citizens Jmp reiterated a "market outperform" rating and set a $77.00 price objective on shares of KB Home in a research note on Wednesday, June 24th. Finally, Truist Financial boosted their price objective on KB Home from $50.00 to $56.00 and gave the stock a "hold" rating in a research note on Wednesday, June 24th. Four equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $60.17.

Insider Activity

In other KB Home news, EVP Albert Z. Praw sold 22,015 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total value of $1,292,280.50. Following the transaction, the executive vice president directly owned 104,062 shares in the company, valued at $6,108,439.40. The trade was a 17.46% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Arthur Reginald Collins sold 4,000 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total transaction of $227,840.00. Following the completion of the sale, the director directly owned 9,157 shares of the company's stock, valued at approximately $521,582.72. This trade represents a 30.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 4.69% of the stock is currently owned by company insiders.

KB Home Stock Performance

NYSE KBH opened at $54.91 on Friday. The stock's fifty day moving average is $57.07 and its two-hundred day moving average is $55.14. The firm has a market capitalization of $3.37 billion, a P/E ratio of 19.13, a price-to-earnings-growth ratio of 9.07 and a beta of 1.35. KB Home has a fifty-two week low of $44.03 and a fifty-two week high of $68.71.

KB Home (NYSE:KBH - Get Free Report) last issued its earnings results on Tuesday, June 23rd. The construction company reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by ($0.01). KB Home had a return on equity of 7.67% and a net margin of 4.94%.The company had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.09 billion. During the same period last year, the business earned $1.50 earnings per share. The firm's revenue was down 27.3% compared to the same quarter last year. As a group, sell-side analysts forecast that KB Home will post 3.3 EPS for the current year.

KB Home Dividend Announcement

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