KB Home (NYSE:KBH) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• KB Home has an average analyst rating of "Hold" from 15 analysts (2 sell, 10 hold, 3 buy) with a mean 1-year target of $59.50, and several firms have recently cut price targets (e.g., Seaport to $43).
• The company reported quarterly EPS of $0.52 (in line with estimates) but missed revenue at $1.08 billion versus $1.10 billion expected, with revenue down 22.6% year-over-year and prior-year EPS of $1.49.
• KB Home pays a quarterly dividend of $0.25 ($1.00 annualized, ~1.8% yield) and trades with a market cap of $3.49 billion, a P/E of 14.12, and a 52-week range of $48.17 to $68.71.

KB Home (NYSE:KBH - Get Free Report) has been given an average recommendation of "Hold" by the fifteen analysts that are presently covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a sell rating, ten have assigned a hold rating and three have assigned a buy rating to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $59.50.

Several brokerages have weighed in on KBH. Seaport Research Partners reissued a "sell" rating and set a $43.00 price target (down from $65.00) on shares of KB Home in a research report on Tuesday, April 7th. Truist Financial dropped their price target on shares of KB Home from $65.00 to $54.00 and set a "hold" rating for the company in a research report on Wednesday, March 25th. UBS Group dropped their price target on shares of KB Home from $71.00 to $63.00 and set a "buy" rating for the company in a research report on Wednesday, March 25th. Royal Bank Of Canada dropped their price target on shares of KB Home from $54.00 to $53.00 and set a "sector perform" rating for the company in a research report on Wednesday, March 25th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of KB Home in a research report on Thursday, January 22nd.

Institutional Investors Weigh In On KB Home

Institutional investors and hedge funds have recently modified their holdings of the stock. First Horizon Corp lifted its position in shares of KB Home by 178.9% in the 4th quarter. First Horizon Corp now owns 502 shares of the construction company's stock worth $28,000 after purchasing an additional 322 shares during the period. Parkside Financial Bank & Trust lifted its position in shares of KB Home by 73.1% in the 4th quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company's stock worth $33,000 after purchasing an additional 250 shares during the period. Fulcrum Asset Management LLP purchased a new stake in shares of KB Home in the 3rd quarter worth about $36,000. Jones Financial Companies Lllp lifted its position in shares of KB Home by 44.4% in the 3rd quarter. Jones Financial Companies Lllp now owns 781 shares of the construction company's stock worth $49,000 after purchasing an additional 240 shares during the period. Finally, Aventura Private Wealth LLC purchased a new stake in shares of KB Home in the 4th quarter worth about $46,000. 96.09% of the stock is owned by hedge funds and other institutional investors.

KB Home Stock Performance

Shares of KB Home stock opened at $55.63 on Wednesday. The stock has a market capitalization of $3.49 billion, a price-to-earnings ratio of 14.12, a price-to-earnings-growth ratio of 9.26 and a beta of 1.50. The company has a fifty day moving average of $56.46 and a 200-day moving average of $59.27. KB Home has a 52-week low of $48.17 and a 52-week high of $68.71.

KB Home (NYSE:KBH - Get Free Report) last announced its quarterly earnings results on Tuesday, March 24th. The construction company reported $0.52 earnings per share for the quarter, meeting the consensus estimate of $0.52. The business had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.10 billion. KB Home had a net margin of 5.96% and a return on equity of 9.63%. The firm's revenue for the quarter was down 22.6% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.49 EPS. On average, equities research analysts forecast that KB Home will post 3.26 earnings per share for the current fiscal year.

KB Home Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Shareholders of record on Thursday, February 5th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, February 5th. This represents a $1.00 annualized dividend and a yield of 1.8%. KB Home's dividend payout ratio is presently 25.38%.

KB Home Company Profile

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation's largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.

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