KB Home (NYSE:KBH) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• KB Home has a consensus “Hold” rating from 16 analysts: 11 recommend holding, four recommend buying and one recommends selling. The average 12-month price target is $60.17, compared with shares opening at $56.30.
• The homebuilder’s latest quarterly results showed pressure, with EPS of $0.43 narrowly missing estimates and revenue declining 27.3% year over year to $1.11 billion.
• KB Home declared a quarterly dividend of $0.25 per share, equivalent to a $1.00 annualized payout and a 1.8% yield; institutional investors own approximately 96.1% of the stock.

Shares of KB Home (NYSE:KBH - Get Free Report) have earned an average rating of "Hold" from the sixteen analysts that are presently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, eleven have given a hold recommendation and four have issued a buy recommendation on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $60.1667.

Several research firms recently commented on KBH. Barclays raised their price target on shares of KB Home from $56.00 to $57.00 and gave the stock an "overweight" rating in a research note on Thursday, June 25th. Wall Street Zen raised shares of KB Home from a "sell" rating to a "hold" rating in a research report on Saturday, June 27th. Citigroup restated a "market outperform" rating on shares of KB Home in a research note on Wednesday, June 17th. Seaport Research Partners reaffirmed a "sell" rating and set a $43.00 price target (down from $65.00) on shares of KB Home in a research note on Tuesday, April 7th. Finally, Truist Financial boosted their price target on KB Home from $50.00 to $56.00 and gave the company a "hold" rating in a report on Wednesday, June 24th.

KB Home Stock Performance

Shares of NYSE KBH opened at $56.30 on Friday. KB Home has a fifty-two week low of $44.03 and a fifty-two week high of $68.71. The company has a market cap of $3.45 billion, a price-to-earnings ratio of 19.62, a PEG ratio of 9.46 and a beta of 1.34. The business's 50 day moving average price is $55.18 and its 200-day moving average price is $55.68.

KB Home (NYSE:KBH - Get Free Report) last posted its quarterly earnings data on Tuesday, June 23rd. The construction company reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by ($0.01). KB Home had a net margin of 4.94% and a return on equity of 7.67%. The business had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.09 billion. During the same quarter in the previous year, the firm earned $1.50 EPS. KB Home's revenue was down 27.3% compared to the same quarter last year. Sell-side analysts predict that KB Home will post 3.3 earnings per share for the current year.

KB Home Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Thursday, August 6th. KB Home's dividend payout ratio is currently 34.84%.

Institutional Trading of KB Home

Institutional investors and hedge funds have recently made changes to their positions in the company. United Services Automobile Association purchased a new position in KB Home during the 1st quarter valued at about $226,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake 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 valued at $13,108,000 after purchasing an additional 11,103 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in shares of KB Home by 23.5% during the second quarter. EverSource Wealth Advisors LLC now owns 2,530 shares of the construction company's stock valued at $134,000 after purchasing an additional 482 shares in the last quarter. Marshall Wace LLP increased its holdings in KB Home by 341.2% during the second quarter. Marshall Wace LLP now owns 86,667 shares of the construction company's stock valued at $4,591,000 after buying an additional 67,023 shares during the period. Finally, Gamco Investors INC. ET AL purchased a new position in KB Home during the second quarter valued at approximately $711,000. 96.09% of the stock is currently owned by institutional investors.

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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