KB Home (NYSE:KBH) Stock Price Expected to Rise, Evercore ISI Analyst Says

Key Points

• Evercore ISI has raised its price target for KB Home from $70 to $73, indicating a potential upside of 15.95% from the stock's last close.
• Several analysts have recently given KB Home an average rating of "Hold" with a consensus price target of $67.23, despite some researchers issuing ratings ranging from "Strong Buy" to "Sell."
• For the most recent quarter, KB Home reported an EPS of $1.61 which exceeded expectations, yet its revenue declined by 7.4% year-over-year to $1.62 billion.

KB Home (NYSE:KBH - Get Free Report) had its price objective boosted by equities researchers at Evercore ISI from $70.00 to $73.00 in a report released on Thursday,Benzinga reports. The firm currently has an "outperform" rating on the construction company's stock. Evercore ISI's price target would indicate a potential upside of 15.95% from the stock's previous close.

Several other research analysts also recently commented on the company. Raymond James Financial reaffirmed an "outperform" rating and set a $72.00 target price (up from $65.00) on shares of KB Home in a report on Thursday. Wells Fargo & Company boosted their price objective on KB Home from $50.00 to $60.00 and gave the stock an "underweight" rating in a report on Tuesday, September 2nd. Wall Street Zen raised KB Home from a "sell" rating to a "hold" rating in a report on Saturday, July 12th. Bank of America boosted their price objective on KB Home from $60.00 to $67.00 and gave the stock a "neutral" rating in a report on Thursday, September 18th. 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 report on Thursday, June 26th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, KB Home has an average rating of "Hold" and a consensus price target of $67.23.

KB Home Stock Performance

Shares of KBH traded up $0.58 on Thursday, reaching $62.96. 1,518,186 shares of the stock traded hands, compared to its average volume of 1,479,122. The company has a debt-to-equity ratio of 0.47, a current ratio of 5.83 and a quick ratio of 0.60. KB Home has a 12 month low of $48.90 and a 12 month high of $86.73. The firm has a market cap of $4.28 billion, a price-to-earnings ratio of 8.36, a P/E/G ratio of 5.07 and a beta of 1.36. The stock's 50-day moving average price is $61.56 and its 200-day moving average price is $56.95.

KB Home (NYSE:KBH - Get Free Report) last announced its quarterly 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 14.02% and a net margin of 8.47%.The company had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.59 billion. During the same period in the prior year, the company earned $2.04 earnings per share. The company's revenue for the quarter was down 7.4% compared to the same quarter last year. Equities analysts forecast that KB Home will post 8.42 EPS for the current fiscal year.

Insider Transactions at KB Home

In related news, COO Robert V. Mcgibney sold 14,000 shares of KB Home stock in a transaction that occurred on Tuesday, July 15th. The shares were sold at an average price of $53.52, for a total transaction of $749,280.00. Following the transaction, the chief operating officer directly owned 78,345 shares of the company's stock, valued at $4,193,024.40. This trade represents a 15.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 3.89% of the stock is currently owned by insiders.

Institutional Trading of KB Home

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. State Street Corp boosted its position in KB Home by 3.1% in the 2nd quarter. State Street Corp now owns 3,503,159 shares of the construction company's stock valued at $185,562,000 after buying an additional 106,926 shares during the period. Geode Capital Management LLC lifted its position in shares of KB Home by 7.4% during the 2nd quarter. Geode Capital Management LLC now owns 1,784,398 shares of the construction company's stock valued at $94,530,000 after acquiring an additional 123,030 shares during the period. Norges Bank acquired a new stake in shares of KB Home during the 2nd quarter valued at approximately $55,329,000. AQR Capital Management LLC lifted its position in shares of KB Home by 116.1% during the 1st quarter. AQR Capital Management LLC now owns 942,479 shares of the construction company's stock valued at $53,957,000 after acquiring an additional 506,415 shares during the period. Finally, Bank of New York Mellon Corp lifted its holdings in shares of KB Home by 0.4% in the second quarter. Bank of New York Mellon Corp now owns 766,974 shares of the construction company's stock valued at $40,627,000 after purchasing an additional 3,308 shares in the last quarter. Institutional investors and hedge funds 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.

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