Graham Capital Management L.P. Makes New Investment in KB Home $KBH

Key Points

• Graham Capital Management L.P. invested approximately $983,000 in KB Home by purchasing 16,920 shares during the first quarter of the year.
• In a broader trend, multiple institutional investors increased their stakes in KB Home, with 96.09% of the stock now owned by institutional investors and hedge funds.
• KB Home recently announced a quarterly dividend of $0.25 per share, leading to an annualized dividend of $1.00 and a yield of 1.6%.

Graham Capital Management L.P. purchased a new position in shares of 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 firm purchased 16,920 shares of the construction company's stock, valued at approximately $983,000.

Several other institutional investors and hedge funds have also recently modified their holdings of KBH. Bank of New York Mellon Corp boosted its stake in KB Home by 0.9% in 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. Two Sigma Advisers LP boosted its position in shares of KB Home by 4,408.6% in the 4th quarter. Two Sigma Advisers LP now owns 523,000 shares of the construction company's stock worth $34,372,000 after purchasing an additional 511,400 shares during the last quarter. Systematic Financial Management LP raised its stake in KB Home by 0.4% in the first quarter. Systematic Financial Management LP now owns 492,440 shares of the construction company's stock valued at $28,621,000 after buying an additional 2,137 shares during the period. Two Sigma Investments LP lifted its stake in shares of KB Home by 1,136.2% in the 4th quarter. Two Sigma Investments LP now owns 423,341 shares of the construction company's stock valued at $27,822,000 after acquiring an additional 389,097 shares during the last quarter. Finally, Voloridge Investment Management LLC acquired a new stake in shares of KB Home in the 4th quarter valued at about $19,526,000. Institutional investors and hedge funds own 96.09% of the company's stock.

Insider Activity at KB Home

In other news, COO Robert V. Mcgibney sold 14,000 shares of KB Home stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $53.52, for a total transaction of $749,280.00. Following the completion of the sale, the chief operating officer owned 78,345 shares of the company's stock, valued at approximately $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 Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 3.89% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on KBH shares. Evercore ISI decreased their target price on shares of KB Home from $77.00 to $70.00 and set an "outperform" rating for the company in a research note on Tuesday, June 24th. UBS Group lowered their price target 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. Wall Street Zen upgraded shares of KB Home from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. Wells Fargo & Company lifted their price target on KB Home from $50.00 to $60.00 and gave the stock an "underweight" rating in a research note on Tuesday, September 2nd. Finally, Barclays set a $49.00 target price on KB Home and gave the stock an "equal weight" rating in a report on Tuesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, KB Home presently has an average rating of "Hold" and an average price target of $66.86.

KB Home Stock Down 0.3%

Shares of KB Home stock traded down $0.22 during trading on Monday, hitting $67.75. 510,821 shares of the stock were exchanged, compared to its average volume of 1,467,428. KB Home has a 12-month low of $48.90 and a 12-month high of $89.70. The stock has a market cap of $4.61 billion, a price-to-earnings ratio of 8.96, a price-to-earnings-growth ratio of 5.53 and a beta of 1.36. The company has a debt-to-equity ratio of 0.47, a current ratio of 5.83 and a quick ratio of 0.60. The firm's 50-day moving average price is $58.88 and its 200 day moving average price is $56.60.

KB Home (NYSE:KBH - Get Free Report) last released 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 company had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.51 billion. KB Home had a net margin of 8.47% and a return on equity of 14.02%. The business's quarterly revenue was down 10.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.15 earnings per share. As a group, analysts forecast 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 was paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend was Thursday, August 7th. KB Home's dividend payout ratio (DPR) is currently 13.25%.

KB Home Company 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.