KB Home (NYSE:KBH) Reaches New 1-Year Low - Here's Why

Key Points

• KB Home shares fell 3.8% to a new 52-week low of $44.03, well below their 50-day and 200-day moving averages of approximately $52.24 and $52.84.
• Analyst sentiment is mixed, with four Buy, eight Hold, and four Sell ratings; the consensus rating is Hold with an average price target of $53.08.
• Recent earnings showed pressure on the business: quarterly revenue declined 20% year over year to $1.30 billion and EPS fell to $1.05 from $1.61, despite exceeding analyst expectations.

Shares of KB Home (NYSE:KBH - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $44.03 and last traded at $44.0570, with a volume of 106760 shares changing hands. The stock had previously closed at $45.40.

Wall Street Analyst Weigh In

A number of equities analysts have commented on KBH shares. Morgan Stanley initiated coverage on shares of KB Home in a report on Thursday, October 1st. They issued an "underweight" rating and a $39.00 price objective for the company. Citigroup reaffirmed an "outperform" rating on shares of KB Home in a report on Wednesday, September 23rd. UBS Group reaffirmed a "buy" rating on shares of KB Home in a research report on Wednesday, September 23rd. Wall Street Zen lowered shares of KB Home from a "hold" rating to a "sell" rating in a research note on Saturday. Finally, Evercore set a $59.00 target price on KB Home in a research note on Wednesday, September 23rd. Four investment 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. According to data from MarketBeat, KB Home has an average rating of "Hold" and an average target price of $53.08.

KB Home Stock Down 3.8%

The business's 50 day moving average is $52.24 and its two-hundred day moving average is $52.84. The firm has a market capitalization of $2.68 billion, a P/E ratio of 12.30, a PEG ratio of 2.34 and a beta of 1.34.

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

KB Home Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Thursday, August 6th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, August 6th. This represents a $1.00 annualized dividend and a yield of 2.3%. KB Home's payout ratio is presently 28.17%.

Insiders Place Their Bets

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

Institutional Investors Weigh In On KB Home

Several hedge funds have recently modified their holdings of KBH. BlackRock Inc. acquired a new stake in KB Home during the 2nd quarter valued at $618,489,000. Donald Smith & CO. Inc. acquired a new stake in KB Home during the second quarter valued at $108,652,000. Bamco Inc. NY purchased a new position in KB Home in the second quarter valued at about $37,500,000. Bank of New York Mellon Corp acquired a new position in KB Home in the 2nd quarter worth about $35,837,000. Finally, Bank of America Corp DE bought a new position in shares of KB Home during the 2nd quarter valued at $35,377,000. 96.09% of the stock is owned by hedge funds and other institutional investors.

KB Home Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.