Vanguard Group Inc. Reduces Stock Position in KB Home $KBH

Key Points

• Vanguard Group Inc. reduced its holdings in KB Home (NYSE:KBH) by 2.1%, now owning 6,964,062 shares valued at approximately $404.75 million.
• KB Home reported earnings of $1.50 per share for the recent quarter, surpassing the consensus estimate, despite revenue falling 10.5% year-over-year.
• The company declared a quarterly dividend of $0.25 per share, with an annualized yield of 1.6%, set to be paid on August 21st.

Vanguard Group Inc. decreased its position in shares of KB Home (NYSE:KBH - Free Report) by 2.1% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 6,964,062 shares of the construction company's stock after selling 146,069 shares during the period. Vanguard Group Inc. owned about 9.71% of KB Home worth $404,751,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also recently added to or reduced their stakes in the stock. Barclays PLC raised its stake in KB Home by 31.0% during the fourth quarter. Barclays PLC now owns 257,030 shares of the construction company's stock worth $16,892,000 after buying an additional 60,801 shares during the last quarter. Jump Financial LLC grew its holdings in KB Home by 952.6% in the fourth quarter. Jump Financial LLC now owns 40,725 shares of the construction company's stock worth $2,676,000 after purchasing an additional 36,856 shares during the period. NewEdge Advisors LLC grew its holdings in KB Home by 10.5% in the fourth quarter. NewEdge Advisors LLC now owns 36,681 shares of the construction company's stock worth $2,411,000 after purchasing an additional 3,478 shares during the period. Farringdon Capital Ltd. acquired a new stake in KB Home in the fourth quarter worth $572,000. Finally, Alpha DNA Investment Management LLC grew its holdings in KB Home by 7.6% in the fourth quarter. Alpha DNA Investment Management LLC now owns 5,423 shares of the construction company's stock worth $356,000 after purchasing an additional 385 shares during the period. Institutional investors and hedge funds own 96.09% of the company's stock.

Insider Activity

In related news, COO Robert V. Mcgibney sold 14,000 shares of the stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $53.52, for a total value of $749,280.00. Following the completion of the transaction, the chief operating officer directly owned 78,345 shares in the company, valued at $4,193,024.40. This trade represents a 15.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.89% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on KBH shares. Barclays set a $49.00 price objective on shares of KB Home and gave the company an "equal weight" rating in a report on Tuesday, June 24th. UBS Group lowered their price objective 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. Keefe, Bruyette & Woods lowered their price target 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. 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. Finally, Wells Fargo & Company reissued an "underweight" rating and issued a $52.00 price target (down previously from $53.00) on shares of KB Home in a research report on Tuesday, June 24th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $66.14.

KB Home Trading Up 1.7%

Shares of KB Home stock traded up $1.0540 during trading on Tuesday, reaching $63.2640. The company's stock had a trading volume of 572,600 shares, compared to its average volume of 1,486,642. The firm's 50-day moving average is $55.74 and its two-hundred day moving average is $56.70. KB Home has a 52-week low of $48.90 and a 52-week high of $89.70. The company has a quick ratio of 0.60, a current ratio of 5.83 and a debt-to-equity ratio of 0.47. The company has a market cap of $4.31 billion, a price-to-earnings ratio of 8.38, a PEG ratio of 5.05 and a beta of 1.34.

KB Home (NYSE:KBH - Get Free Report) last posted its quarterly earnings results on Monday, June 23rd. The construction company reported $1.50 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 analyst estimates of $1.51 billion. During the same period in the prior year, the business posted $2.15 EPS. The firm's revenue was down 10.5% compared to the same quarter last year. On average, sell-side analysts anticipate that KB Home will post 8.42 earnings per share for the current year.

KB Home Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th will be issued a $0.25 dividend. The ex-dividend date is Thursday, August 7th. This represents a $1.00 annualized dividend and a yield of 1.6%. KB Home's dividend payout ratio is 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.