KB Home (KBH) Upgraded by Zacks Investment Research to “Hold”
According to Zacks, “KB Home focuses on strategic initiatives like boosting community count, achieving higher revenue per community, higher profitability per unit, and increasing asset efficiency and return on capital invested to drive growth. The company opens communities in highly favorable submarkets where housing demand is strong and supply is limited. It also focuses on profit per unit by improving cost efficiencies without compromising on the quality of the product. However, KB Home’s community count, which declined during third-quarter 2016, is expected to drop further in the fourth quarter. The company does not expect community count to recover till 2017 beginning. Though demand in Houston is stabilizing, it will take a while before it rebounds.”
Several other equities research analysts also recently commented on the company. MKM Partners set a $13.00 price objective on KB Home and gave the stock a hold rating in a report on Wednesday, September 14th. Buckingham Research upgraded KB Home from a neutral rating to a buy rating in a report on Monday, September 19th. Wedbush assumed coverage on KB Home in a report on Monday, September 19th. They issued an outperform rating and a $22.00 price objective for the company. Royal Bank Of Canada lifted their price objective on KB Home from $16.00 to $17.00 and gave the stock a sector perform rating in a report on Wednesday, September 21st. Finally, Bank of America Corp. reiterated a sell rating and issued a $12.50 price objective on shares of KB Home in a report on Wednesday, September 21st. Three equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and three have given a buy rating to the stock. The stock presently has an average rating of Hold and an average price target of $15.57.
Shares of KB Home (NYSE:KBH) opened at 15.42 on Monday. The stock has a market capitalization of $1.31 billion, a P/E ratio of 13.35 and a beta of 2.07. KB Home has a one year low of $9.04 and a one year high of $16.76. The stock has a 50 day moving average of $15.20 and a 200-day moving average of $15.07.
KB Home (NYSE:KBH) last posted its quarterly earnings results on Tuesday, September 20th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.03. The firm earned $913.30 million during the quarter. KB Home had a return on equity of 6.77% and a net margin of 3.31%. KB Home’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.23 EPS. Equities analysts forecast that KB Home will post $1.32 earnings per share for the current year.
The business also recently announced a quarterly dividend, which was paid on Thursday, November 17th. Stockholders of record on Thursday, November 3rd were given a dividend of $0.025 per share. This represents a $0.10 annualized dividend and a dividend yield of 0.65%. The ex-dividend date of this dividend was Tuesday, November 1st. KB Home’s dividend payout ratio is currently 8.62%.
Several institutional investors have recently added to or reduced their stakes in the stock. Creative Planning increased its position in KB Home by 6.0% in the third quarter. Creative Planning now owns 9,409 shares of the company’s stock valued at $152,000 after buying an additional 529 shares in the last quarter. Amalgamated Bank bought a new position in KB Home during the second quarter valued at $161,000. Teacher Retirement System of Texas increased its position in KB Home by 5.3% in the second quarter. Teacher Retirement System of Texas now owns 10,689 shares of the company’s stock valued at $163,000 after buying an additional 538 shares in the last quarter. Capstone Investment Advisors LLC bought a new position in KB Home during the second quarter valued at $166,000. Finally, Bank of Hawaii bought a new position in KB Home during the third quarter valued at $188,000. 91.86% of the stock is currently owned by hedge funds and other institutional investors.
KB Home Company Profile
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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