Zacks Investment Research Lowers KB Home (KBH) to Sell
According to Zacks, “Although KB Home has developed the right strategy to generate cash, accelerate asset turnover, boost returns and reduce debt, the rising interest rates may dent demand, thereby hurting profits for KB Home. With the Fed announcing a hike in the benchmark, mortgage rates will probably rise later in 2017. High mortgage rates dilute the demand for new homes as mortgage loans become expensive. This lowers the purchasing power of the buyers and hurts volumes, revenues and profits of homebuilders. Meanwhile, KB Home shares underperformed the Zacks categorized Building-Residential/Commercial industry over the last three months. Estimates have also moved down frame raising apprehensions for the stock’s performance for the time being.”
KBH has been the subject of a number of other research reports. BTIG Research started coverage on KB Home in a report on Tuesday, February 7th. They set a sell rating and a $13.00 price objective for the company. Buckingham Research cut KB Home from a buy rating to a neutral rating in a report on Tuesday, February 28th. Barclays PLC started coverage on KB Home in a report on Thursday, January 5th. They set an underweight rating and a $15.00 price objective for the company. Raymond James Financial, Inc. restated an underperform rating on shares of KB Home in a report on Tuesday, January 24th. Finally, Wedbush restated an outperform rating on shares of KB Home in a report on Friday, December 30th. Seven analysts have rated the stock with a sell rating, eleven have given a hold rating and three have assigned a buy rating to the company. The stock currently has a consensus rating of Hold and an average target price of $15.75.
KB Home (NYSE:KBH) traded down 0.10% during midday trading on Wednesday, reaching $19.45. The company had a trading volume of 213,222 shares. KB Home has a 12 month low of $12.38 and a 12 month high of $19.82. The stock has a market cap of $1.65 billion, a P/E ratio of 17.37 and a beta of 1.93. The firm has a 50-day moving average of $17.36 and a 200-day moving average of $16.16.
KB Home (NYSE:KBH) last posted its quarterly earnings results on Wednesday, January 11th. The company reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.01. KB Home had a return on equity of 6.35% and a net margin of 2.94%. The business earned $1.19 billion during the quarter. During the same quarter in the previous year, the business posted $0.43 EPS. The company’s revenue for the quarter was up 20.9% on a year-over-year basis. On average, equities analysts expect that KB Home will post $1.51 EPS for the current fiscal year.
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The business also recently disclosed a quarterly dividend, which was paid on Thursday, February 23rd. Investors of record on Thursday, February 9th were issued a $0.025 dividend. The ex-dividend date was Tuesday, February 7th. This represents a $0.10 dividend on an annualized basis and a yield of 0.51%. KB Home’s payout ratio is 8.85%.
A number of hedge funds have recently bought and sold shares of the stock. Creative Planning boosted its stake in shares of KB Home by 6.0% in the third quarter. Creative Planning now owns 9,409 shares of the company’s stock worth $152,000 after buying an additional 529 shares during the period. Bank of Hawaii purchased a new stake in shares of KB Home during the third quarter worth approximately $188,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its stake in shares of KB Home by 0.7% in the fourth quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 12,316 shares of the company’s stock worth $195,000 after buying an additional 80 shares during the period. Wedbush Securities Inc. boosted its stake in shares of KB Home by 2.4% in the third quarter. Wedbush Securities Inc. now owns 12,716 shares of the company’s stock worth $205,000 after buying an additional 300 shares during the period. Finally, Gideon Capital Advisors Inc. purchased a new stake in shares of KB Home during the fourth quarter worth approximately $230,000. Institutional investors and hedge funds own 95.74% of the company’s stock.
KB Home Company Profile
KB HOME is a homebuilding company. The Company is engaged in selling and building a range of new homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family residential homes. It operates through five segments, which consist of four homebuilding segments and one financial services segment.
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