KB Home (NYSE:KBH) Hits New 12-Month Low - Here's What Happened

Key Points

• KB Home shares hit a new 52-week low, trading as low as $41.57 and closing near $41.65, down 3.4% from the prior close.
• Analyst sentiment has weakened, with recent downgrades and a consensus “Hold” rating; the average price target is $53.08, above the current price.
• The company’s latest revenue fell 20% year over year and quarterly EPS declined to $1.05 from $1.61, though earnings exceeded estimates. KB Home maintained a quarterly dividend of $0.25, representing a 2.4% annualized yield.

KB Home (NYSE:KBH - Get Free Report)'s stock price hit a new 52-week low during trading on Tuesday. The company traded as low as $41.57 and last traded at $41.6520, with a volume of 1,379,557 shares traded. The stock had previously closed at $43.13.

Analysts Set New Price Targets

KBH has been the subject of a number of research reports. UBS Group reiterated a "buy" rating on shares of KB Home in a report on Wednesday, September 23rd. Wall Street Zen downgraded KB Home from a "hold" rating to a "sell" rating in a report on Saturday, October 3rd. Morgan Stanley assumed coverage on KB Home in a report on Thursday, October 1st. They set an "underweight" rating and a $39.00 price objective on the stock. Zacks Research lowered KB Home from a "hold" rating to a "strong sell" rating in a research report on Thursday, September 17th. Finally, Keefe, Bruyette & Woods lowered their target price on KB Home from $65.00 to $54.00 and set a "market perform" rating for the company in a report on Monday, October 5th. Four equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $53.08.

KB Home Stock Down 3.4%

The business has a 50 day simple moving average of $51.21 and a 200 day simple moving average of $52.58. The company has a market capitalization of $2.53 billion, a PE ratio of 11.73, a PEG ratio of 2.24 and a beta of 1.34.

KB Home (NYSE:KBH - Get Free Report) last issued its quarterly earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.17. KB Home had a return on equity of 6.56% and a net margin of 4.39%. The business had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter last year, the company earned $1.61 earnings per share. The company's quarterly revenue was down 20.0% on a year-over-year basis. Equities analysts expect that KB Home will post 3.25 EPS for the current fiscal year.

KB Home Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Thursday, November 12th will be paid a $0.25 dividend. The ex-dividend date is Thursday, November 12th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.4%. KB Home's dividend payout ratio is presently 28.17%.

Insider Buying and Selling at KB Home

In other KB Home news, EVP Albert Z. Praw sold 22,015 shares of the company's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total value of $1,292,280.50. Following the sale, the executive vice president directly owned 104,062 shares of the company's stock, valued at approximately $6,108,439.40. This represents a 17.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Arthur Collins sold 4,000 shares of the company's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total transaction of $227,840.00. Following the completion of the sale, the director directly owned 9,157 shares in the company, valued at approximately $521,582.72. The trade was a 30.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 4.69% of the company's stock.

Hedge Funds Weigh In On KB Home

Several institutional investors and hedge funds have recently modified their holdings of the stock. Eastern Bank acquired a new stake in shares of KB Home in the second quarter valued at approximately $26,000. Bessemer Group Inc. grew its position in shares of KB Home by 80.0% during the first quarter. Bessemer Group Inc. now owns 495 shares of the construction company's stock worth $26,000 after acquiring an additional 220 shares during the last quarter. Ameritas Advisory Services LLC acquired a new position in shares of KB Home in the 2nd quarter valued at $46,000. Polaris Financial Partners acquired a new position in shares of KB Home in the 3rd quarter valued at $43,000. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of KB Home in the 2nd quarter valued at $73,000. Institutional investors and hedge funds own 96.09% of the company's stock.

About KB Home

KB Home is a national homebuilder that designs, constructs and sells single-family homes and townhomes. The company offers homes in a range of floor plans, sizes and price points, with options that allow buyers to personalize features and finishes. Its communities typically include amenities such as parks, open spaces and other neighborhood improvements.

Founded in 1957, KB Home is headquartered in Los Angeles, California. The company serves residential markets across the United States, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.

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