KB Home (NYSE:KBH) Shares Climb 6.2% – Here’s Why

KB Home (NYSE:KBH)’s stock price traded up 6.2% on Thursday. The company traded as high as $45.58 and last traded at $45.6830. Approximately 415,247 shares changed hands during trading, a decline of 66% from the average daily volume of 1,239,400 shares. The stock had previously closed at $43.01.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. Melius Research started coverage on shares of KB Home in a research note on Tuesday, October 6th. They issued a “sell” rating and a $43.00 price objective on the stock. Royal Bank Of Canada decreased their target price on shares of KB Home from $50.00 to $47.00 and set a “sector perform” rating for the company in a research note on Thursday, October 15th. Weiss Ratings downgraded shares of KB Home from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, October 9th. Evercore set a $59.00 price target on KB Home in a research report on Wednesday, September 23rd. Finally, UBS Group restated a “buy” rating on shares of KB Home in a research report on Wednesday, September 23rd. Four investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $52.23.

KB Home Stock Performance

The company has a market cap of $2.86 billion, a price-to-earnings ratio of 13.27, a PEG ratio of 2.40 and a beta of 1.34. The company has a 50-day simple moving average of $48.78 and a 200-day simple moving average of $52.10.

KB Home (NYSE:KBH) last posted its quarterly 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 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 analysts’ expectations of $1.30 billion. During the same period last year, the firm earned $1.61 EPS. The company’s quarterly revenue was down 20.0% compared to the same quarter last year. As a group, equities research analysts forecast that KB Home will post 3.26 EPS for the current year.

KB Home Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Thursday, November 12th will be given a $0.25 dividend. The ex-dividend date is Thursday, November 12th. This represents a $1.00 annualized dividend and a yield of 2.1%. KB Home’s dividend payout ratio is presently 28.17%.

Insiders Place Their Bets

In related news, EVP Albert Z. Praw sold 22,015 shares of the firm’s stock in a transaction dated 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 completion of the sale, the executive vice president owned 104,062 shares in the company, valued at $6,108,439.40. This trade represents a 17.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Arthur Collins sold 4,000 shares of the business’s stock in a transaction dated Thursday, August 6th. The stock was 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. This represents a 30.40% decrease in their position. The SEC filing for this sale provides additional information. 4.69% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On KB Home

A number of hedge funds and other institutional investors have recently modified their holdings of KBH. Bessemer Group Inc. raised its holdings in 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 purchasing an additional 220 shares during the last quarter. Eastern Bank acquired a new stake in KB Home in the second quarter valued at $26,000. Mather Group LLC. acquired a new stake in KB Home in the third quarter valued at $34,000. Polaris Financial Partners purchased a new position in shares of KB Home in the third quarter valued at $43,000. Finally, Ameritas Advisory Services LLC purchased a new position in shares of KB Home in the second quarter valued at $46,000. 96.09% of the stock is currently owned by institutional investors and hedge funds.

About KB Home

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.