KB Home (KBH) Rating Increased to Buy at Zacks Investment Research
KB Home (NYSE:KBH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday. The brokerage currently has a $28.00 price target on the construction company’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 9.20% from the company’s previous close.
According to Zacks, “KB Home came up with stellar quarterly results once again on solid housing fundamentals. Earnings and sales surpassed analysts’ expectations by 8.5% and 2.1%, respectively, in third-quarter fiscal 2017. The company reported impressive 25.3% growth in revenues banking on an 11% increase in deliveries. Earnings in the quarter grew more than 21% year over year, helped by solid margins. Its adjusted housing gross profit margin improved 50 basis points (bps). This was primarily attributed to 12% rise in average selling price. Also, adjusted homebuilding operating margin surged 140 bps. The upside was primarily driven by an ongoing housing market recovery and favorable industry fundamentals. The company also 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 seven days.<“
KBH has been the topic of a number of other research reports. BTIG Research reissued a “sell” rating and issued a $16.00 target price on shares of KB Home in a report on Monday. Royal Bank Of Canada reissued a “hold” rating and issued a $25.00 target price on shares of KB Home in a report on Tuesday, August 29th. Wedbush reissued an “ourperform” rating and issued a $26.00 target price on shares of KB Home in a report on Saturday, September 16th. Credit Suisse Group AG began coverage on KB Home in a report on Thursday, June 22nd. They issued a “neutral” rating and a $23.00 target price on the stock. Finally, Keefe, Bruyette & Woods set a $24.00 price objective on KB Home and gave the stock a “hold” rating in a report on Saturday, August 19th. Four investment analysts have rated the stock with a sell rating, twelve have assigned 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 target price of $21.93.
Shares of KB Home (NYSE:KBH) traded up 1.48% during trading on Wednesday, reaching $26.02. 2,236,459 shares of the company traded hands. The company has a market capitalization of $2.24 billion, a price-to-earnings ratio of 18.60 and a beta of 1.54. KB Home has a 1-year low of $14.06 and a 1-year high of $26.07. The stock’s 50 day moving average is $22.01 and its 200 day moving average is $21.77.
KB Home (NYSE:KBH) last released its earnings results on Thursday, September 28th. The construction company reported $0.51 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.47 by $0.04. The business had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.12 billion. KB Home had a return on equity of 7.57% and a net margin of 3.22%. The company’s revenue for the quarter was up 24.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.42 earnings per share. On average, analysts forecast that KB Home will post $1.74 EPS for the current year.
In related news, insider Jeffrey T. Mezger sold 400,000 shares of the firm’s stock in a transaction that occurred on Monday, August 14th. The stock was sold at an average price of $22.81, for a total value of $9,124,000.00. Following the sale, the insider now directly owns 682,996 shares in the company, valued at approximately $15,579,138.76. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP William R. Hollinger sold 57,405 shares of the firm’s stock in a transaction that occurred on Wednesday, August 9th. The shares were sold at an average price of $23.19, for a total value of $1,331,221.95. Following the completion of the sale, the senior vice president now owns 214,306 shares in the company, valued at $4,969,756.14. The disclosure for this sale can be found here. 8.60% of the stock is owned by company insiders.
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Northwestern Mutual Investment Management Company LLC increased its position in KB Home by 0.7% in the 2nd quarter. Northwestern Mutual Investment Management Company LLC now owns 14,426 shares of the construction company’s stock valued at $219,000 after acquiring an additional 94 shares during the period. Meeder Asset Management Inc. increased its position in KB Home by 0.4% in the 2nd quarter. Meeder Asset Management Inc. now owns 48,655 shares of the construction company’s stock valued at $1,167,000 after acquiring an additional 204 shares during the period. Amalgamated Bank increased its position in KB Home by 2.5% in the 2nd quarter. Amalgamated Bank now owns 11,945 shares of the construction company’s stock valued at $286,000 after acquiring an additional 289 shares during the period. Advantus Capital Management Inc increased its position in KB Home by 3.0% in the 1st quarter. Advantus Capital Management Inc now owns 10,648 shares of the construction company’s stock valued at $212,000 after acquiring an additional 309 shares during the period. Finally, Comerica Bank increased its position in KB Home by 0.6% in the 2nd quarter. Comerica Bank now owns 64,359 shares of the construction company’s stock valued at $1,506,000 after acquiring an additional 396 shares during the period. Hedge funds and other institutional investors own 98.37% of the company’s stock.
About KB Home
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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