KB Home (KBH) Bond Prices Fall 0.8%
An issue of KB Home (NYSE:KBH) debt fell 0.8% as a percentage of its face value during trading on Tuesday. The debt issue has a 7.5% coupon and is set to mature on September 15, 2022. The bonds in the issue are now trading at $107.71 and were trading at $108.75 one week ago. Price moves in a company’s debt in credit markets sometimes anticipate parallel moves in its share price.
KBH has been the subject of several research analyst reports. TheStreet raised shares of KB Home from a “hold” rating to a “buy” rating in a research report on Wednesday, June 22nd. Zacks Investment Research raised shares of KB Home from a “hold” rating to a “buy” rating and set a $18.00 target price for the company in a research report on Monday, July 18th. Buckingham Research raised shares of KB Home from a “neutral” rating to a “buy” rating in a research report on Monday, September 19th. Argus reaffirmed a “hold” rating on shares of KB Home in a research report on Monday, July 18th. Finally, MKM Partners reaffirmed a “hold” rating on shares of KB Home in a research report on Tuesday, June 7th. Three equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and three have issued a buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $15.40.
Shares of KB Home (NYSE:KBH) opened at 15.70 on Wednesday. The stock’s 50 day moving average is $15.57 and its 200-day moving average is $14.80. KB Home has a one year low of $9.04 and a one year high of $16.76. The stock has a market cap of $1.33 billion, a P/E ratio of 13.65 and a beta of 1.99.
KB Home (NYSE:KBH) last released its quarterly earnings data on Tuesday, September 20th. The company reported $0.42 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.39 by $0.03. KB Home had a net margin of 3.31% and a return on equity of 6.77%. The company earned $913.30 million during the quarter. During the same period last year, the company earned $0.23 earnings per share. The firm’s revenue was up 8.3% compared to the same quarter last year. On average, equities analysts forecast that KB Home will post $1.33 EPS for the current year.
In related news, insider Jeffrey T. Mezger sold 500,000 shares of the company’s stock in a transaction dated Wednesday, July 27th. The shares were sold at an average price of $16.47, for a total value of $8,235,000.00. Following the completion of the sale, the insider now directly owns 606,716 shares of the company’s stock, valued at $9,992,612.52. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Jeffrey T. Mezger sold 110,000 shares of the company’s stock in a transaction dated Monday, July 25th. The stock was sold at an average price of $16.39, for a total transaction of $1,802,900.00. Following the completion of the sale, the chief executive officer now directly owns 606,716 shares of the company’s stock, valued at $9,944,075.24. The disclosure for this sale can be found here. 8.60% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in KBH. Systematic Financial Management LP raised its stake in KB Home by 740.8% in the second quarter. Systematic Financial Management LP now owns 3,292,229 shares of the company’s stock worth $50,074,000 after buying an additional 2,900,654 shares during the period. AQR Capital Management LLC raised its stake in KB Home by 85.6% in the second quarter. AQR Capital Management LLC now owns 3,151,739 shares of the company’s stock worth $47,938,000 after buying an additional 1,453,844 shares during the period. Old Mutual Global Investors UK Ltd. raised its stake in KB Home by 325.3% in the second quarter. Old Mutual Global Investors UK Ltd. now owns 1,444,001 shares of the company’s stock worth $21,963,000 after buying an additional 1,104,500 shares during the period. Canada Pension Plan Investment Board raised its stake in KB Home by 254.9% in the first quarter. Canada Pension Plan Investment Board now owns 1,212,894 shares of the company’s stock worth $17,320,000 after buying an additional 871,100 shares during the period. Finally, Norges Bank acquired a new stake in KB Home during the fourth quarter worth $10,377,000. 92.39% of the stock is owned by institutional investors.
About KB Home
KB Home is a homebuilding company in the United States. The Company constructs and sells a range of new homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family residential homes, townhomes and condominiums. Its segments include the West Coast, Southwest, Central and Southeast homebuilding segments, and financial services segment.
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