KB Home (NYSE:KBH) to Issue Dividend Increase - $0.25 Per Share

KB Home (NYSE:KBH - Get Free Report) declared a quarterly dividend on Thursday, April 18th, Wall Street Journal reports. Shareholders of record on Thursday, May 9th will be paid a dividend of 0.25 per share by the construction company on Thursday, May 23rd. This represents a $1.00 annualized dividend and a yield of 1.64%. The ex-dividend date is Wednesday, May 8th. This is an increase from KB Home's previous quarterly dividend of $0.20.

KB Home has raised its dividend by an average of 18.6% per year over the last three years and has raised its dividend every year for the last 1 years. KB Home has a payout ratio of 9.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect KB Home to earn $8.72 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 9.2%.

KB Home Stock Performance

Shares of KB Home stock traded up $0.62 during trading on Friday, reaching $61.03. The company's stock had a trading volume of 1,713,756 shares, compared to its average volume of 1,170,181. KB Home has a one year low of $40.97 and a one year high of $72.00. The firm has a market cap of $4.63 billion, a price-to-earnings ratio of 8.30, a price-to-earnings-growth ratio of 0.69 and a beta of 1.73. The business's fifty day moving average price is $65.93 and its 200-day moving average price is $58.52.

KB Home (NYSE:KBH - Get Free Report) last announced its quarterly earnings data on Wednesday, March 20th. The construction company reported $1.76 EPS for the quarter, beating analysts' consensus estimates of $1.57 by $0.19. KB Home had a net margin of 9.29% and a return on equity of 15.78%. The business had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same quarter in the prior year, the business earned $1.45 earnings per share. The firm's revenue for the quarter was up 6.5% on a year-over-year basis. Sell-side analysts anticipate that KB Home will post 8.01 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Jeff Kaminski sold 4,928 shares of the stock in a transaction that occurred on Wednesday, January 24th. The shares were sold at an average price of $59.86, for a total transaction of $294,990.08. Following the sale, the chief financial officer now owns 38,386 shares in the company, valued at approximately $2,297,785.96. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, CFO Jeff Kaminski sold 4,928 shares of the stock in a transaction that occurred on Wednesday, January 24th. The shares were sold at an average price of $59.86, for a total value of $294,990.08. Following the completion of the transaction, the chief financial officer now owns 38,386 shares of the company's stock, valued at approximately $2,297,785.96. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Brian J. Woram sold 83,272 shares of the business's stock in a transaction on Tuesday, January 30th. The stock was sold at an average price of $60.53, for a total transaction of $5,040,454.16. Following the sale, the executive vice president now directly owns 156,119 shares in the company, valued at approximately $9,449,883.07. The disclosure for this sale can be found here. Insiders have sold 412,021 shares of company stock worth $24,954,977 over the last ninety days. Corporate insiders own 4.44% of the company's stock.

Hedge Funds Weigh In On KB Home

A number of institutional investors and hedge funds have recently bought and sold shares of KBH. Vanguard Group Inc. grew its position in shares of KB Home by 1.4% during the 1st quarter. Vanguard Group Inc. now owns 7,970,899 shares of the construction company's stock worth $258,098,000 after buying an additional 108,191 shares during the period. Macquarie Group Ltd. grew its holdings in KB Home by 2.2% during the 2nd quarter. Macquarie Group Ltd. now owns 3,980,992 shares of the construction company's stock valued at $113,299,000 after buying an additional 85,582 shares in the last quarter. State Street Corp increased its holdings in KB Home by 0.3% during the 1st quarter. State Street Corp now owns 2,793,847 shares of the construction company's stock worth $112,257,000 after acquiring an additional 7,935 shares during the period. Fuller & Thaler Asset Management Inc. raised its position in shares of KB Home by 125.5% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 2,077,861 shares of the construction company's stock worth $67,281,000 after buying an additional 1,156,233 shares in the last quarter. Finally, AQR Capital Management LLC lifted its stake in KB Home by 16.1% during the first quarter. AQR Capital Management LLC now owns 1,668,451 shares of the construction company's stock worth $66,504,000 after purchasing an additional 231,859 shares during the last quarter. Institutional investors and hedge funds own 96.09% of the company's stock.

Analyst Ratings Changes

KBH has been the subject of several research reports. JPMorgan Chase & Co. raised their target price on KB Home from $68.50 to $70.50 and gave the stock a "neutral" rating in a research report on Wednesday, March 27th. Barclays lifted their target price on shares of KB Home from $75.00 to $77.00 and gave the company an "overweight" rating in a research note on Friday, March 22nd. UBS Group increased their target price on KB Home from $82.00 to $87.00 and gave the stock a "buy" rating in a report on Thursday, March 21st. Evercore ISI reduced their price objective on shares of KB Home from $82.00 to $78.00 and set an "outperform" rating for the company in a research report on Thursday, March 21st. Finally, The Goldman Sachs Group lifted their target price on shares of KB Home from $61.00 to $70.00 and gave the stock a "neutral" rating in a report on Friday, March 22nd. One analyst has rated the stock with a sell rating, seven have given a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $66.11.

KB Home Company Profile

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.