KB Home (KBH) Downgraded by Zacks Investment Research to “Hold”
KB Home (NYSE:KBH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Monday.
According to Zacks, “KB Home shares have outperformed its industry, year to date. It has formulated the right strategy to boost scale in existing geographic footprint, improve profitability per unit, generate higher operating margin and drive earnings, while simultaneously generating positive cash flow to invest in growth and debt reduction. The company’s first half of fiscal 2017 results show an impressive 22% growth in revenues and a double-digit increase in deliveries and housing revenues along with 58% surge in profit level. Strong orders in value (up 21.8%) and backlog (up 19%) in the first half also bode well. However, higher construction and labor costs, rising interest rate as well as competitive pricing pressure are pressing concerns.”
Several other equities research analysts have also recently issued reports on the stock. Wedbush reissued a “buy” rating and issued a $26.00 target price on shares of KB Home in a research report on Friday. MKM Partners reissued a “neutral” rating on shares of KB Home in a research report on Tuesday, September 5th. Royal Bank Of Canada reissued a “hold” rating and issued a $25.00 target price on shares of KB Home in a research report on Tuesday, August 29th. Keefe, Bruyette & Woods set a $24.00 target price on shares of KB Home and gave the stock a “hold” rating in a research report on Saturday, August 19th. Finally, BidaskClub cut shares of KB Home from a “strong-buy” rating to a “buy” rating in a research report on Friday, August 11th. Five equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and two have given a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $20.93.
Shares of KB Home (NYSE:KBH) traded up 0.91% during trading on Monday, hitting $21.07. 1,518,364 shares of the stock traded hands. KB Home has a 52-week low of $14.06 and a 52-week high of $24.37. The firm has a market cap of $1.80 billion, a PE ratio of 16.23 and a beta of 1.60. The company’s 50 day moving average is $22.15 and its 200 day moving average is $21.46.
KB Home (NYSE:KBH) last released its earnings results on Tuesday, June 27th. The construction company reported $0.33 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.26 by $0.07. KB Home had a net margin of 3.13% and a return on equity of 7.11%. The business had revenue of $1 billion for the quarter, compared to analysts’ expectations of $929.85 million. During the same period last year, the company earned $0.17 earnings per share. The company’s quarterly revenue was up 23.7% on a year-over-year basis. On average, equities research analysts predict that KB Home will post $1.68 EPS for the current year.
In other news, insider Jeffrey T. Mezger sold 400,000 shares of the business’s stock in a transaction on Monday, August 14th. The shares were sold at an average price of $22.81, for a total transaction of $9,124,000.00. Following the transaction, the insider now directly owns 682,996 shares of the company’s stock, valued at $15,579,138.76. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Jeff Kaminski sold 163,017 shares of the business’s stock in a transaction on Thursday, June 29th. The stock was sold at an average price of $23.40, for a total transaction of $3,814,597.80. Following the transaction, the chief financial officer now directly owns 178,251 shares in the company, valued at $4,171,073.40. The disclosure for this sale can be found here. Over the last three months, insiders have sold 620,422 shares of company stock worth $14,269,820. Corporate insiders own 8.60% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of KBH. Russell Investments Group Ltd. lifted its position in shares of KB Home by 1,401.0% during the first quarter. Russell Investments Group Ltd. now owns 79,900 shares of the construction company’s stock worth $1,588,000 after purchasing an additional 74,577 shares in the last quarter. Great West Life Assurance Co. Can lifted its position in shares of KB Home by 4.5% during the first quarter. Great West Life Assurance Co. Can now owns 48,962 shares of the construction company’s stock worth $973,000 after purchasing an additional 2,093 shares in the last quarter. First Trust Advisors LP lifted its position in shares of KB Home by 39.1% during the first quarter. First Trust Advisors LP now owns 151,290 shares of the construction company’s stock worth $3,008,000 after purchasing an additional 42,540 shares in the last quarter. Comerica Bank lifted its position in shares of KB Home by 4.6% during the first quarter. Comerica Bank now owns 63,963 shares of the construction company’s stock worth $1,352,000 after purchasing an additional 2,814 shares in the last quarter. Finally, Swiss National Bank lifted its position in shares of KB Home by 1.7% during the first quarter. Swiss National Bank now owns 125,700 shares of the construction company’s stock worth $2,499,000 after purchasing an additional 2,100 shares in the last quarter. 98.37% of the stock is currently owned by institutional investors and hedge funds.
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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