Great Lakes Advisors LLC Buys 84,875 Shares of KB Home $KBH

Key Points

• Great Lakes Advisors LLC increased its holdings in KB Home by 83.5%, resulting in ownership of approximately 186,496 shares valued at $10.84 million.
• KB Home reported earnings of $1.50 per share in its latest financial results, surpassing analysts' expectations by $0.05, despite a 10.5% decline in quarterly revenue year-over-year.
• The company announced a quarterly dividend of $0.25 per share, yielding 1.5%, with a relatively low dividend payout ratio of 13.25%.

Great Lakes Advisors LLC lifted its stake in KB Home (NYSE:KBH - Free Report) by 83.5% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 186,496 shares of the construction company's stock after acquiring an additional 84,875 shares during the quarter. Great Lakes Advisors LLC owned approximately 0.26% of KB Home worth $10,839,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of KBH. Cetera Investment Advisers increased its stake in shares of KB Home by 2.8% in the fourth quarter. Cetera Investment Advisers now owns 23,556 shares of the construction company's stock worth $1,548,000 after acquiring an additional 632 shares during the last quarter. Deutsche Bank AG increased its stake in shares of KB Home by 17.9% in the fourth quarter. Deutsche Bank AG now owns 129,770 shares of the construction company's stock worth $8,528,000 after acquiring an additional 19,668 shares during the last quarter. Ethic Inc. increased its stake in shares of KB Home by 25.0% in the fourth quarter. Ethic Inc. now owns 18,042 shares of the construction company's stock worth $1,186,000 after acquiring an additional 3,610 shares during the last quarter. Janus Henderson Group PLC increased its stake in shares of KB Home by 174.9% in the fourth quarter. Janus Henderson Group PLC now owns 191,988 shares of the construction company's stock worth $12,620,000 after acquiring an additional 122,145 shares during the last quarter. Finally, Laird Norton Wetherby Wealth Management LLC increased its stake in shares of KB Home by 3.2% in the fourth quarter. Laird Norton Wetherby Wealth Management LLC now owns 16,440 shares of the construction company's stock worth $1,080,000 after acquiring an additional 503 shares during the last quarter. 96.09% of the stock is owned by institutional investors and hedge funds.

KB Home Stock Performance

KBH stock traded down $1.43 during mid-day trading on Friday, reaching $65.95. 980,249 shares of the stock traded hands, compared to its average volume of 1,460,299. 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. The business has a 50-day moving average of $59.85 and a two-hundred day moving average of $56.82. The firm has a market capitalization of $4.49 billion, a PE ratio of 8.74, a P/E/G ratio of 5.33 and a beta of 1.36.

KB Home (NYSE:KBH - Get Free Report) last released its quarterly earnings results on Monday, June 23rd. The construction company reported $1.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.45 by $0.05. KB Home had a net margin of 8.47% and a return on equity of 14.02%. The company had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.51 billion. During the same period in the prior year, the company earned $2.15 earnings per share. The business's quarterly revenue was down 10.5% compared to the same quarter last year. As a group, equities analysts predict that KB Home will post 8.42 EPS for the current fiscal year.

KB Home Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Thursday, August 7th. KB Home's dividend payout ratio is 13.25%.

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 completion of the sale, the chief operating officer directly owned 78,345 shares in the company, valued at $4,193,024.40. This represents a 15.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.89% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Oppenheimer assumed coverage on shares of KB Home in a research report on Wednesday, September 3rd. They set a "market perform" rating on the stock. Bank of America lowered their target price 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. UBS Group lowered 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. Wall Street Zen raised shares of KB Home from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. Finally, Keefe, Bruyette & Woods lowered 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. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $66.86.

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.