KB Home (NYSE:KBH) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of KB Home (NYSE:KBH) from a hold rating to a buy rating in a report released on Monday, Zacks.com reports. The firm currently has $27.00 price objective on the construction company’s stock.
According to Zacks, “KB Home reported better-than-expected fiscal second-quarter results. Earnings and revenues topped the Zacks Consensus Estimate by 30.8% and 9.3%, respectively. The results benefited from continued progress of the Returns-Focused Growth plan, given stellar 17% average community count growth. Notably, shares of the company have outperformed its industry year to date. It believes that declining mortgage rates, steady economic growth, high consumer confidence and favorable demographics will help it grow further in the remainder of fiscal 2019. Consequently, it provided an optimistic fiscal third-quarter guidance that suggests a sequential improvement. Yet, lower average selling price (ASP) is a concern. ASP declined 8% during the quarter due to a shift in the geographic mix of homes delivered. Also, higher land and labor cost added to the woes.”
A number of other equities research analysts have also recently commented on the company. JPMorgan Chase & Co. cut Engie to a hold rating in a research note on Wednesday, April 10th. Wedbush reissued a neutral rating and issued a $22.00 target price (down from $25.00) on shares of KB Home in a research note on Thursday, June 27th. Barclays cut Buckeye Partners from an overweight rating to an equal weight rating in a research note on Monday, May 13th. Raymond James set a C$1.00 target price on Orezone Gold and gave the stock an outperform rating in a research note on Friday, June 28th. Finally, BTIG Research cut EVO Payments from a buy rating to a neutral rating in a research note on Monday, July 1st. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and seven have issued a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $26.27.
KB Home (NYSE:KBH) last released its earnings results on Wednesday, June 26th. The construction company reported $0.51 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.12. KB Home had a return on equity of 12.43% and a net margin of 5.94%. The firm had revenue of $1.02 billion for the quarter, compared to analysts’ expectations of $933.49 million. During the same period in the prior year, the firm posted $0.57 earnings per share. The company’s quarterly revenue was down 7.4% on a year-over-year basis. On average, equities research analysts predict that KB Home will post 2.69 EPS for the current fiscal year.
In related news, CEO Jeffrey T. Mezger sold 183,257 shares of the stock in a transaction on Monday, April 15th. The stock was sold at an average price of $25.41, for a total transaction of $4,656,560.37. Following the sale, the chief executive officer now directly owns 1,056,532 shares of the company’s stock, valued at $26,846,478.12. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Jeffrey T. Mezger sold 489,258 shares of the stock in a transaction on Wednesday, April 17th. The shares were sold at an average price of $25.37, for a total value of $12,412,475.46. Following the sale, the insider now directly owns 1,056,532 shares in the company, valued at $26,804,216.84. The disclosure for this sale can be found here. Insiders have sold 983,838 shares of company stock worth $25,116,916 over the last ninety days. 7.32% of the stock is currently owned by insiders.
Institutional investors have recently added to or reduced their stakes in the stock. Liberty Wealth Management LLC purchased a new stake in shares of KB Home during the fourth quarter valued at $25,000. Quadrant Capital Group LLC boosted its position in shares of KB Home by 2,436.3% during the first quarter. Quadrant Capital Group LLC now owns 2,029 shares of the construction company’s stock valued at $47,000 after buying an additional 1,949 shares during the last quarter. Penserra Capital Management LLC purchased a new stake in shares of KB Home during the first quarter valued at $59,000. Quantamental Technologies LLC purchased a new stake in shares of KB Home during the first quarter valued at $70,000. Finally, ETF Managers Group LLC boosted its position in shares of KB Home by 11.2% during the first quarter. ETF Managers Group LLC now owns 5,042 shares of the construction company’s stock valued at $122,000 after buying an additional 506 shares during the last quarter. 89.53% of the stock is currently owned by institutional investors.
KB Home Company Profile
KB Home operates as a homebuilding company in the United States. It operates in four segments: West Coast, Southwest, Central, and Southeast. The company builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, and active adult homebuyers.
Featured Article: Sell-Side Analysts
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for KB Home Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KB Home and related companies with MarketBeat.com's FREE daily email newsletter.