KB Home (KBH) Rating Lowered to Hold at Zacks Investment Research
KB Home (NYSE:KBH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.
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 analysts also recently weighed in on KBH. Mizuho started coverage on KB Home in a research note on Tuesday, May 16th. They issued a “neutral” rating and a $20.00 price target on the stock. Wedbush set a $22.00 price target on KB Home and gave the stock a “buy” rating in a research note on Thursday, June 15th. Credit Suisse Group started coverage on KB Home in a research note on Thursday, June 22nd. They issued a “neutral” rating and a $23.00 price target on the stock. Royal Bank Of Canada restated a “sector perform” rating and issued a $25.00 price target (up previously from $22.00) on shares of KB Home in a research note on Friday, June 23rd. Finally, Bank of America Corporation upped their price target on KB Home from $17.00 to $19.00 and gave the stock an “underperform” rating in a research note on Wednesday, June 28th. Five equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and two have given a buy rating to the company. The stock has an average rating of “Hold” and a consensus target price of $19.88.
Shares of KB Home (NYSE:KBH) opened at 21.32 on Tuesday. The firm has a 50-day moving average price of $22.63 and a 200-day moving average price of $21.21. 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 $1.82 billion, a PE ratio of 16.43 and a beta of 1.60.
KB Home (NYSE:KBH) last posted its quarterly earnings results on Tuesday, June 27th. The construction company reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.07. The company had revenue of $1 billion for the quarter, compared to the consensus estimate of $929.85 million. KB Home had a return on equity of 7.11% and a net margin of 3.13%. The firm’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.17 EPS. On average, equities research analysts predict that KB Home will post $1.71 earnings per share for the current year.
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In related news, CFO Jeff Kaminski sold 163,017 shares of the firm’s stock in a transaction on Thursday, June 29th. The stock was sold at an average price of $23.40, for a total value of $3,814,597.80. Following the transaction, the chief financial officer now directly owns 178,251 shares of the company’s stock, valued at approximately $4,171,073.40. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Jeffrey T. Mezger sold 400,000 shares of the firm’s stock in a transaction 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 completion of the transaction, the insider now directly owns 682,996 shares in the company, valued at $15,579,138.76. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 620,422 shares of company stock worth $14,269,820. 8.60% of the stock is owned by insiders.
A number of institutional investors have recently made changes to their positions in KBH. BlackRock Inc. raised its holdings in KB Home by 19,999.6% in the 1st quarter. BlackRock Inc. now owns 10,064,270 shares of the construction company’s stock worth $200,078,000 after purchasing an additional 10,014,198 shares during the period. Vanguard Group Inc. increased its stake in KB Home by 7.7% in the 2nd quarter. Vanguard Group Inc. now owns 6,884,880 shares of the construction company’s stock worth $165,031,000 after buying an additional 492,594 shares in the last quarter. Capital World Investors increased its stake in KB Home by 30.1% in the 2nd quarter. Capital World Investors now owns 2,117,000 shares of the construction company’s stock worth $50,744,000 after buying an additional 490,000 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in KB Home by 16.4% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,803,374 shares of the construction company’s stock worth $67,196,000 after buying an additional 394,584 shares in the last quarter. Finally, Artemis Investment Management LLP purchased a new stake in KB Home in the 2nd quarter worth $8,539,000. 98.37% of the stock is currently owned by institutional investors.
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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