SCS Capital Management LLC Purchases New Stake in KB Home $KBH

Key Points

• SCS Capital Management LLC has acquired a new stake in KB Home, purchasing 6,019 shares valued at approximately $350,000 during the first quarter.
• Insider selling was notable, with COO Robert V. Mcgibney selling 14,000 shares at an average price of $53.52, representing a 15.16% decrease in his ownership of the stock.
• KB Home recently reported earnings of $1.50 per share, beating analysts' estimates, though their quarterly revenue dropped 10.5% year-over-year.

SCS Capital Management LLC purchased a new position in shares of KB Home (NYSE:KBH - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 6,019 shares of the construction company's stock, valued at approximately $350,000.

Other institutional investors have also modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of KB Home by 5.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 225,525 shares of the construction company's stock worth $13,108,000 after purchasing an additional 11,103 shares in the last quarter. United Services Automobile Association purchased a new stake in KB Home during the 1st quarter worth approximately $226,000. Great Lakes Advisors LLC lifted its holdings in KB Home by 83.5% during the 1st quarter. Great Lakes Advisors LLC now owns 186,496 shares of the construction company's stock worth $10,839,000 after buying an additional 84,875 shares in the last quarter. Caxton Associates LLP purchased a new position in KB Home in the 1st quarter valued at approximately $2,006,000. Finally, Sciencast Management LP purchased a new position in KB Home in the 1st quarter valued at approximately $337,000. 96.09% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Evercore ISI lowered their price objective on KB Home from $77.00 to $70.00 and set an "outperform" rating for the company in a research report on Tuesday, June 24th. Oppenheimer started coverage on shares of KB Home in a report on Wednesday, September 3rd. They set a "market perform" rating for the company. 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. Wells Fargo & Company lifted their price objective on shares of KB Home from $50.00 to $60.00 and gave the stock an "underweight" rating in a research report on Tuesday, September 2nd. Finally, Wall Street Zen raised KB Home from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $66.86.

KB Home Stock Performance

NYSE:KBH traded down $1.43 during mid-day trading on Friday, reaching $65.95. 980,249 shares of the stock were exchanged, compared to its average volume of 1,132,128. The stock has a market capitalization of $4.49 billion, a P/E ratio of 8.74, a P/E/G ratio of 5.35 and a beta of 1.36. KB Home has a 1 year low of $48.90 and a 1 year high of $89.70. The company has a 50 day simple moving average of $60.09 and a 200-day simple moving average of $56.77. 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 (NYSE:KBH - Get Free Report) last issued its quarterly earnings data on Monday, June 23rd. The construction company reported $1.50 earnings per share for the quarter, beating analysts' consensus estimates of $1.45 by $0.05. KB Home had a return on equity of 14.02% and a net margin of 8.47%.The company had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.51 billion. During the same quarter in the previous year, the business earned $2.15 earnings per share. The firm's revenue for the quarter was down 10.5% on a year-over-year basis. Analysts anticipate that KB Home will post 8.42 earnings per share for the current fiscal year.

KB Home Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 21st. Shareholders of record on Thursday, August 7th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Thursday, August 7th. KB Home's dividend payout ratio (DPR) is 13.25%.

Insider Activity

In other news, COO Robert V. Mcgibney sold 14,000 shares of the company's stock in a transaction that occurred 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 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 document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 3.89% of the company's stock.

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.