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 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 reported an impressive 23% growth in revenues, double-digit increase in deliveries and 41% surge in net income, in the first nine months of 2017. The upside was primarily driven by an ongoing housing market recovery and favorable industry fundamentals. The company expects the uptrend to continue to 2018. KB Home shares have widely outperformed the homebuilding industry, year to date. Also, the trend in current-year earnings estimate revisions is satisfactory. Estimates moved upward over the past sixty days, reflecting analysts’ optimism. However, higher construction and labor costs, rising interest rate as well as competitive pricing pressures raise concern.”
Other research analysts also recently issued reports about the stock. Wedbush reissued a “buy” rating and set a $26.00 target price on shares of KB Home in a research report on Friday, September 22nd. BidaskClub downgraded shares of KB Home from a “strong-buy” rating to a “buy” rating in a research report on Friday, August 11th. Keefe, Bruyette & Woods reissued a “hold” rating and set a $24.00 target price on shares of KB Home in a research report on Friday, September 29th. KeyCorp reissued a “hold” rating on shares of KB Home in a research report on Tuesday, September 26th. Finally, Royal Bank Of Canada reaffirmed a “hold” rating and issued a $25.00 price objective on shares of KB Home in a report on Tuesday, August 29th. Five investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and one has assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $22.44.
KB Home (KBH) traded down $0.58 during trading on Monday, hitting $30.78. 3,546,300 shares of the stock were exchanged, compared to its average volume of 2,538,298. KB Home has a 1 year low of $15.03 and a 1 year high of $31.41. The company has a market cap of $2,662.48, a P/E ratio of 22.14, a P/E/G ratio of 0.73 and a beta of 1.69.
KB Home (NYSE:KBH) last released its earnings results on Thursday, September 28th. The construction company reported $0.51 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.47 by $0.04. KB Home had a net margin of 3.22% and a return on equity of 7.57%. The firm had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the prior year, the firm earned $0.42 EPS. The company’s revenue was up 24.8% compared to the same quarter last year. equities research analysts predict that KB Home will post 1.77 earnings per share for the current year.
In related news, EVP Albert Z. Praw sold 150,000 shares of the firm’s stock in a transaction that occurred on Monday, October 9th. The shares were sold at an average price of $25.85, for a total value of $3,877,500.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Brian J. Woram sold 49,529 shares of the stock in a transaction that occurred on Thursday, October 12th. The stock was sold at an average price of $27.11, for a total transaction of $1,342,731.19. The disclosure for this sale can be found here. 8.60% of the stock is currently owned by company insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the business. Creative Planning lifted its stake in KB Home by 34.9% in the 2nd quarter. Creative Planning now owns 4,289 shares of the construction company’s stock worth $103,000 after purchasing an additional 1,110 shares in the last quarter. AllSquare Wealth Management LLC purchased a new stake in KB Home in the 3rd quarter worth approximately $113,000. LS Investment Advisors LLC lifted its stake in KB Home by 18.0% in the 2nd quarter. LS Investment Advisors LLC now owns 6,511 shares of the construction company’s stock worth $156,000 after purchasing an additional 991 shares in the last quarter. Victory Capital Management Inc. lifted its stake in KB Home by 17.6% in the 2nd quarter. Victory Capital Management Inc. now owns 8,288 shares of the construction company’s stock worth $199,000 after purchasing an additional 1,241 shares in the last quarter. Finally, Yorktown Management & Research Co Inc purchased a new stake in KB Home in the 2nd quarter worth approximately $201,000. Institutional investors and hedge funds own 96.95% of the company’s stock.
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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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