KB Home (NYSE:KBH) Price Target Raised to $60.00

Key Points

• Wells Fargo & Company raised its price target for KB Home from $50.00 to $60.00, while maintaining an "underweight" rating on the stock, indicating a potential downside of 4.17% from its previous close.
• Other analysts have varied target prices for KB Home, with UBS Group setting a target of $80.00 and Bank of America lowering theirs to $54.00, contributing to an overall average target of $66.86.
• KB Home reported earnings of $1.50 per share, exceeding analysts' expectations, despite a 10.5% year-over-year decline in revenue.

KB Home (NYSE:KBH - Get Free Report) had its price target raised by analysts at Wells Fargo & Company from $50.00 to $60.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has an "underweight" rating on the construction company's stock. Wells Fargo & Company's target price points to a potential downside of 11.59% from the stock's current price.

A number of other equities research analysts also recently weighed in on KBH. Wall Street Zen upgraded KB Home from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. Barclays set a $49.00 price objective on KB Home and gave the stock an "equal weight" rating in a research note on Tuesday, June 24th. UBS Group decreased their price objective on KB Home from $86.00 to $80.00 and set a "buy" rating for the company in a research note on Tuesday, June 24th. Bank of America decreased their price objective on KB Home from $58.00 to $54.00 and set a "neutral" rating for the company in a research note on Tuesday, June 24th. Finally, Keefe, Bruyette & Woods decreased their price objective on KB Home from $65.00 to $58.00 and set a "market perform" rating for the company in a research note on Thursday, June 26th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $66.86.

KB Home Price Performance

KBH traded up $1.92 during trading on Tuesday, hitting $67.87. The company's stock had a trading volume of 1,713,597 shares, compared to its average volume of 1,241,893. The firm's 50 day moving average price is $58.88 and its two-hundred day moving average price is $56.69. 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 12 month low of $48.90 and a 12 month high of $89.70. The stock has a market capitalization of $4.62 billion, a price-to-earnings ratio of 8.99, a price-to-earnings-growth ratio of 5.36 and a beta of 1.36.

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 (EPS) for the quarter, beating the consensus estimate of $1.45 by $0.05. The firm had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.51 billion. KB Home had a return on equity of 14.02% and a net margin of 8.47%.The business's revenue for the quarter was down 10.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.15 EPS. Sell-side analysts forecast that KB Home will post 8.42 earnings per share for the current fiscal year.

Insider Activity at KB Home

In related news, COO Robert V. Mcgibney sold 14,000 shares of the company's stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $53.52, for a total transaction of $749,280.00. Following the sale, 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 3.89% of the stock is currently owned by company insiders.

Institutional Trading of KB Home

Several institutional investors and hedge funds have recently bought and sold shares of KBH. State Street Corp grew its position in shares of KB Home by 3.1% in the second quarter. State Street Corp now owns 3,503,159 shares of the construction company's stock valued at $185,562,000 after purchasing an additional 106,926 shares during the last quarter. Geode Capital Management LLC grew its position in shares of KB Home by 7.4% in the second quarter. Geode Capital Management LLC now owns 1,784,398 shares of the construction company's stock valued at $94,530,000 after purchasing an additional 123,030 shares during the last quarter. Northern Trust Corp grew its position in shares of KB Home by 7.3% in the fourth quarter. Northern Trust Corp now owns 1,101,300 shares of the construction company's stock valued at $72,377,000 after purchasing an additional 75,206 shares during the last quarter. Norges Bank acquired a new position in shares of KB Home in the second quarter valued at approximately $55,329,000. Finally, AQR Capital Management LLC grew its position in shares of KB Home by 116.1% in the first quarter. AQR Capital Management LLC now owns 942,479 shares of the construction company's stock valued at $53,957,000 after purchasing an additional 506,415 shares during the last quarter. Institutional investors own 96.09% of the company's stock.

About KB Home

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.