KB Home (NYSE:KBH) Sets New 12-Month Low - Here's Why

Key Points

• KB Home hit a new 52-week low, trading as low as $48.04 and last at $48.1170 on volume of 521,239 shares (prior close $51.44).
• Several analysts have cut ratings and price targets — including Wall Street Zen to "sell" and Seaport lowering its target to $43 (from $65) — leaving an overall average rating of "Hold" and an average target of $59.17.
• KB Home's latest quarter showed EPS $0.52 (in line with estimates) but revenue fell 22.6% year‑over‑year and prior-year EPS was $1.49; the company still declared a $0.25 quarterly dividend (annualized $1.00, 2.1% yield).

KB Home (NYSE:KBH - Get Free Report)'s share price reached a new 52-week low during trading on Monday . The company traded as low as $48.04 and last traded at $48.1170, with a volume of 521239 shares. The stock had previously closed at $51.44.

Analyst Ratings Changes

Several research analysts have issued reports on KBH shares. Wall Street Zen lowered shares of KB Home from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Seaport Research Partners reissued a "sell" rating and set a $43.00 target price (down from $65.00) on shares of KB Home in a research note on Tuesday, April 7th. Royal Bank Of Canada dropped their target price on shares of KB Home from $54.00 to $53.00 and set a "sector perform" rating on the stock in a report on Wednesday, March 25th. Truist Financial cut their price target on shares of KB Home from $54.00 to $50.00 and set a "hold" rating on the stock in a research report on Monday. Finally, The Goldman Sachs Group decreased their price target on KB Home from $65.00 to $56.00 and set a "neutral" rating for the company in a report on Wednesday, March 25th. Three equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, KB Home presently has an average rating of "Hold" and an average target price of $59.17.

KB Home Stock Performance

The firm's 50 day moving average price is $54.97 and its two-hundred day moving average price is $59.00. The company has a market cap of $3.01 billion, a P/E ratio of 12.21, a price-to-earnings-growth ratio of 8.97 and a beta of 1.42.

KB Home (NYSE:KBH - Get Free Report) last posted its quarterly earnings results on Tuesday, March 24th. The construction company reported $0.52 EPS for the quarter, hitting analysts' consensus estimates of $0.52. KB Home had a net margin of 5.96% and a return on equity of 9.63%. The business had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.10 billion. During the same period last year, the company posted $1.49 earnings per share. The business's quarterly revenue was down 22.6% on a year-over-year basis. As a group, analysts forecast that KB Home will post 3.13 EPS for the current fiscal year.

KB Home Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 21st. Investors of record on Thursday, May 7th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, May 7th. KB Home's payout ratio is presently 25.38%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in KBH. SG Americas Securities LLC lifted its holdings in shares of KB Home by 204.8% in the 3rd quarter. SG Americas Securities LLC now owns 69,078 shares of the construction company's stock worth $4,396,000 after purchasing an additional 46,415 shares in the last quarter. Y Intercept Hong Kong Ltd bought a new stake in KB Home during the 3rd quarter valued at $1,551,000. iSAM Funds UK Ltd acquired a new position in KB Home during the third quarter worth $1,451,000. Strs Ohio lifted its stake in shares of KB Home by 1,788.1% in the third quarter. Strs Ohio now owns 79,300 shares of the construction company's stock valued at $5,047,000 after buying an additional 75,100 shares in the last quarter. Finally, Deprince Race & Zollo Inc. lifted its stake in shares of KB Home by 13.1% in the fourth quarter. Deprince Race & Zollo Inc. now owns 1,054,280 shares of the construction company's stock valued at $59,472,000 after buying an additional 122,457 shares in the last quarter. Institutional investors own 96.09% of the company's stock.

About KB Home

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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