KB Home (NYSE:KBH) Trading 7.2% Higher - Should You Buy?

Shares of KB Home (NYSE:KBH - Get Free Report) traded up 7.2% on Tuesday . The stock traded as high as $58.13 and last traded at $58.12. 458,400 shares were traded during trading, a decline of 69% from the average session volume of 1,489,899 shares. The stock had previously closed at $54.23.

Wall Street Analysts Forecast Growth

Several research firms recently commented on KBH. Wells Fargo & Company restated an "underweight" rating and issued a $52.00 price target (down previously from $53.00) on shares of KB Home in a report on Tuesday, June 24th. Royal Bank Of Canada dropped their price objective on shares of KB Home from $67.00 to $63.00 and set a "sector perform" rating on the stock in a research note on Tuesday, March 25th. UBS Group dropped their price objective on shares of KB Home from $86.00 to $80.00 and set a "buy" rating on the stock in a research note on Tuesday, June 24th. Wedbush reiterated a "neutral" rating and set a $75.00 price objective on shares of KB Home in a research note on Tuesday, March 25th. Finally, Bank of America dropped their price objective on shares of KB Home from $58.00 to $54.00 and set a "neutral" rating on the stock in a research note on Tuesday, June 24th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, KB Home presently has an average rating of "Hold" and a consensus target price of $66.14.

KB Home Trading Up 9.1%

The firm has a market capitalization of $4.02 billion, a P/E ratio of 7.85, a PEG ratio of 4.33 and a beta of 1.34. The company has a quick ratio of 0.60, a current ratio of 5.83 and a debt-to-equity ratio of 0.47. The business has a 50-day moving average price of $53.25 and a 200-day moving average price of $57.88.

KB Home (NYSE:KBH - Get Free Report) last announced its earnings results on Monday, June 23rd. The construction company reported $1.50 EPS for the quarter, topping the consensus estimate of $1.45 by $0.05. The company had revenue of $1.53 billion for the quarter, compared to analysts' expectations 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% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.15 earnings per share. Analysts anticipate that KB Home will post 8.42 earnings per share for the current year.

KB Home Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.69%. The ex-dividend date is Thursday, August 7th. KB Home's dividend payout ratio is currently 13.25%.

Insider Buying and Selling

In other KB Home news, COO Robert V. Mcgibney sold 14,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 15th. The stock was sold at an average price of $53.52, for a total value of $749,280.00. Following the completion of the transaction, the chief operating officer directly owned 78,345 shares in the company, valued at $4,193,024.40. This trade represents a 15.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Arthur Reginald Collins sold 5,000 shares of KB Home stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $54.38, for a total value of $271,900.00. Following the transaction, the director owned 10,262 shares of the company's stock, valued at $558,047.56. This represents a 32.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. 3.89% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On KB Home

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Harbor Capital Advisors Inc. raised its holdings in shares of KB Home by 73.7% during the 1st quarter. Harbor Capital Advisors Inc. now owns 608 shares of the construction company's stock worth $35,000 after buying an additional 258 shares in the last quarter. Sachetta LLC raised its holdings in shares of KB Home by 3,142.9% during the 1st quarter. Sachetta LLC now owns 681 shares of the construction company's stock worth $40,000 after buying an additional 660 shares in the last quarter. Banque Cantonale Vaudoise acquired a new position in shares of KB Home during the 1st quarter worth $40,000. Byrne Asset Management LLC raised its holdings in shares of KB Home by 51.8% during the 1st quarter. Byrne Asset Management LLC now owns 774 shares of the construction company's stock worth $45,000 after buying an additional 264 shares in the last quarter. Finally, Manchester Capital Management LLC raised its holdings in shares of KB Home by 30.1% during the 1st quarter. Manchester Capital Management LLC now owns 955 shares of the construction company's stock worth $56,000 after buying an additional 221 shares in the last quarter. 96.09% of the stock is owned by institutional investors and hedge funds.

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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