KB Home (NYSE:KBH) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Tuesday. The firm presently has a $39.00 price target on the construction company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 15.28% from the stock’s previous close.

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, in the last one year. Also, the trend in 2018 earnings estimate revisions is satisfactory. Estimates moved upward over the past 30 days, reflecting analysts’ optimism. However, higher construction and labor costs, rising interest rate as well as competitive pricing pressures raise concern.”

A number of other equities analysts have also weighed in on KBH. Credit Suisse Group boosted their price objective on KB Home from $24.00 to $25.00 and gave the stock a “neutral” rating in a research note on Friday, September 29th. Barclays upped their price target on KB Home from $17.00 to $18.00 and gave the company an “underweight” rating in a research note on Friday, September 29th. Wedbush upped their price target on KB Home from $28.00 to $30.00 and gave the company a “neutral” rating in a research note on Friday, December 29th. Keefe, Bruyette & Woods reaffirmed a “hold” rating and issued a $24.00 price target on shares of KB Home in a research note on Friday, September 29th. Finally, Mizuho raised KB Home from an “underperform” rating to a “neutral” rating and set a $21.00 price target on the stock in a research note on Friday, September 29th. Seven equities research analysts have rated the stock with a sell rating, eleven have given a hold rating, one has issued a buy rating and two have issued a strong buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $24.47.

KB Home (KBH) traded up $0.43 during midday trading on Tuesday, reaching $33.83. The company’s stock had a trading volume of 1,906,200 shares, compared to its average volume of 2,155,900. The firm has a market capitalization of $2,960.00, a price-to-earnings ratio of 24.34, a P/E/G ratio of 0.77 and a beta of 1.69. KB Home has a one year low of $15.51 and a one year high of $34.11.

In related news, EVP Brian J. Woram sold 49,529 shares of the business’s stock in a transaction on Thursday, October 12th. The stock was sold at an average price of $27.11, for a total value of $1,342,731.19. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 8.60% of the stock is currently owned by insiders.

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings in KB Home by 7.7% during the 2nd quarter. Vanguard Group Inc. now owns 6,884,880 shares of the construction company’s stock worth $165,031,000 after purchasing an additional 492,594 shares during the period. Dimensional Fund Advisors LP increased its holdings in KB Home by 16.4% during the 2nd quarter. Dimensional Fund Advisors LP now owns 2,803,374 shares of the construction company’s stock worth $67,196,000 after purchasing an additional 394,584 shares during the period. State Street Corp increased its holdings in KB Home by 3.2% during the 2nd quarter. State Street Corp now owns 2,665,501 shares of the construction company’s stock worth $63,890,000 after purchasing an additional 83,179 shares during the period. Capital World Investors increased its holdings in KB Home by 30.1% during the 2nd quarter. Capital World Investors now owns 2,117,000 shares of the construction company’s stock worth $50,744,000 after purchasing an additional 490,000 shares during the period. Finally, Northern Trust Corp increased its holdings in KB Home by 1.9% during the 2nd quarter. Northern Trust Corp now owns 1,337,380 shares of the construction company’s stock worth $32,058,000 after purchasing an additional 25,523 shares during the period. Hedge funds and other institutional investors own 96.73% 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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