KB Home (NYSE:KBH) Shares Climb 6.2% - Time to Buy?

Key Points

• KB Home shares rose 6.2% to about $45.68, though trading volume was 66% below the average session level.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $52.23; ratings range from “Sell” to “Buy.”
• Despite beating quarterly EPS estimates, KB Home reported a 20% year-over-year revenue decline and lower earnings than the prior-year quarter. The company will pay a quarterly dividend of $0.25 per share, representing a 2.2% yield.

KB Home (NYSE:KBH - Get Free Report) shares shot up 6.2% during mid-day trading on Thursday. The stock traded as high as $45.58 and last traded at $45.6830. Approximately 415,247 shares traded hands during mid-day trading, a decline of 66% from the average session volume of 1,239,400 shares. The stock had previously closed at $43.01.

Analysts Set New Price Targets

A number of brokerages have commented on KBH. Evercore set a $59.00 price objective on shares of KB Home in a research report on Wednesday, September 23rd. Melius Research began coverage on shares of KB Home in a report on Tuesday, October 6th. They issued a "sell" rating and a $43.00 target price on the stock. Citigroup reaffirmed an "outperform" rating on shares of KB Home in a report on Wednesday, September 23rd. Zacks Research upgraded shares of KB Home from a "strong sell" rating to a "hold" rating in a research note on Friday, October 16th. Finally, Stonex Financia raised shares of KB Home to a "hold" rating in a report on Thursday, October 15th. Four analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $52.23.

KB Home Stock Performance

The firm has a fifty day moving average price of $49.16 and a 200 day moving average price of $52.17. The firm has a market capitalization of $2.81 billion, a price-to-earnings ratio of 13.01, a PEG ratio of 2.25 and a beta of 1.34.

KB Home (NYSE:KBH - Get Free Report) last posted its quarterly earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.88 by $0.17. KB Home had a return on equity of 6.56% and a net margin of 4.39%. The firm had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same period in the previous year, the business earned $1.61 earnings per share. The company's revenue for the quarter was down 20.0% compared to the same quarter last year. Research analysts predict that KB Home will post 3.26 earnings per share for the current fiscal year.

KB Home Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Thursday, November 12th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $1.00 dividend on an annualized basis and a yield of 2.2%. KB Home's dividend payout ratio (DPR) is 28.17%.

Insider Buying and Selling at KB Home

In other KB Home news, Director Arthur Collins sold 4,000 shares of the business'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 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Albert Praw sold 22,015 shares of the company's stock in a transaction on 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 transaction, the executive vice president directly 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. 4.69% of the stock is currently owned by insiders.

Institutional Trading of KB Home

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Nisa Investment Advisors LLC increased its position in shares of KB Home by 49.4% in the third quarter. Nisa Investment Advisors LLC now owns 3,503 shares of the construction company's stock valued at $163,000 after buying an additional 1,158 shares in the last quarter. Mather Group LLC. purchased a new stake in shares of KB Home in the 3rd quarter worth about $34,000. GAMMA Investing LLC boosted its position in shares of KB Home by 26.3% in the 3rd quarter. GAMMA Investing LLC now owns 2,470 shares of the construction company's stock worth $115,000 after buying an additional 514 shares in the last quarter. Polaris Financial Partners purchased a new stake in shares of KB Home in the 3rd quarter worth about $43,000. Finally, Cim Investment Management Inc. boosted its position in shares of KB Home by 7.3% in the 2nd quarter. Cim Investment Management Inc. now owns 7,802 shares of the construction company's stock worth $488,000 after buying an additional 528 shares in the last quarter. Institutional investors and hedge funds own 96.09% of the company's stock.

KB Home Company Profile

KB Home NYSE: KBH is a homebuilder that develops and constructs residential communities across the United States. The company primarily builds single-family homes, along with certain attached homes and townhomes, serving first-time, move-up and active-adult buyers.

KB Home offers a range of home designs, floor plans and personalization options, allowing buyers to select features and finishes during the construction process. Its activities generally include land acquisition and development, home construction, sales and customer support, with homes built in both suburban and urban communities.

Founded in 1957, KB Home operates in markets across Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.

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