JPMorgan Chase & Co. Has Lowered Expectations for KB Home (NYSE:KBH) Stock Price

Key Points

• JPMorgan Chase & Co. has lowered its price target for KB Home from $63.00 to $53.00, indicating a potential downside of 16.30% from the company's last close.
• Other analysts have varied opinions on KB Home, with target price adjustments ranging from $49.00 to $83.00 and ratings that include "buy", "neutral", and "hold".
• In its latest earnings report, KB Home exceeded expectations with an EPS of $1.61 but experienced a 7.4% year-over-year revenue decline.

KB Home (NYSE:KBH - Get Free Report) had its price target dropped by equities research analysts at JPMorgan Chase & Co. from $63.00 to $53.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a "neutral" rating on the construction company's stock. JPMorgan Chase & Co.'s price objective would indicate a potential downside of 16.30% from the company's previous close.

A number of other research analysts also recently issued reports on KBH. Evercore ISI boosted their price objective on shares of KB Home from $70.00 to $73.00 and gave the company an "outperform" rating in a research report on Thursday. Bank of America increased their price target on shares of KB Home from $60.00 to $67.00 and gave the stock a "neutral" rating in a research note on Thursday, September 18th. Barclays set a $49.00 price objective on KB Home and gave the company an "equal weight" rating in a research report on Tuesday, June 24th. UBS Group reissued a "buy" rating and issued a $83.00 target price on shares of KB Home in a research report on Thursday. Finally, Oppenheimer assumed coverage on KB Home in a research report on Wednesday, September 3rd. They set a "market perform" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $65.55.

KB Home Price Performance

KBH stock opened at $63.32 on Monday. The stock has a market capitalization of $4.31 billion, a price-to-earnings ratio of 8.39, a PEG ratio of 5.12 and a beta of 1.36. The firm's 50-day moving average price is $61.88 and its two-hundred day moving average price is $56.89. The company has a current ratio of 2.13, a quick ratio of 0.23 and a debt-to-equity ratio of 0.47. KB Home has a 12-month low of $48.90 and a 12-month high of $86.73.

KB Home (NYSE:KBH - Get Free Report) last posted its earnings results on Wednesday, September 24th. The construction company reported $1.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.11. KB Home had a return on equity of 12.91% and a net margin of 7.92%.The company had revenue of $1.62 billion for the quarter, compared to analysts' expectations of $1.59 billion. During the same period last year, the firm earned $2.04 earnings per share. KB Home's quarterly revenue was down 7.4% on a year-over-year basis. As a group, equities analysts predict that KB Home will post 8.42 earnings per share for the current year.

Insider Transactions at KB Home

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 shares were sold at an average price of $53.52, for a total value of $749,280.00. Following the transaction, the chief operating officer owned 78,345 shares in the company, valued at approximately $4,193,024.40. This represents a 15.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 3.89% of the company's stock.

Hedge Funds Weigh In On KB Home

A number of hedge funds have recently added to or reduced their stakes in the company. Harbor Capital Advisors Inc. boosted its stake in KB Home by 73.7% during the 1st quarter. Harbor Capital Advisors Inc. now owns 608 shares of the construction company's stock valued at $35,000 after purchasing an additional 258 shares during the last quarter. Sachetta LLC increased its holdings in KB Home by 3,142.9% in the 1st quarter. Sachetta LLC now owns 681 shares of the construction company's stock worth $40,000 after buying an additional 660 shares in the last quarter. Banque Cantonale Vaudoise bought a new position in KB Home during the 1st quarter valued at about $40,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new stake in shares of KB Home during the 2nd quarter valued at about $44,000. Finally, Byrne Asset Management LLC grew its stake in shares of KB Home by 51.8% in the first quarter. Byrne Asset Management LLC now owns 774 shares of the construction company's stock worth $45,000 after acquiring an additional 264 shares during the period. 96.09% of the stock is currently owned by hedge funds and other institutional investors.

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.

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