Melius Research Begins Coverage on KB Home (NYSE:KBH)

Equities researchers at Melius Research initiated coverage on shares of KB Home (NYSE:KBH) in a research report issued to clients and investors on Tuesday, Marketbeat.com reports. The brokerage set a “sell” rating and a $43.00 price target on the construction company’s stock. Melius Research’s price objective would suggest a potential downside of 2.43% from the company’s current price.

Several other research analysts have also recently weighed in on KBH. Citizens Jmp decreased their price objective on shares of KB Home from $77.00 to $70.00 and set a “market outperform” rating for the company in a report on Wednesday, September 23rd. Weiss Ratings upgraded shares of KB Home from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, September 18th. Morgan Stanley initiated coverage on shares of KB Home in a research report on Thursday, October 1st. They issued an “underweight” rating and a $39.00 target price for the company. Wells Fargo & Company cut their target price on shares of KB Home from $52.00 to $50.00 and set an “underweight” rating for the company in a research report on Friday, September 11th. Finally, Citigroup reiterated an “outperform” rating on shares of KB Home in a research note on Wednesday, September 23rd. Four investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $53.08.

KB Home Stock Performance

NYSE KBH opened at $44.07 on Tuesday. KB Home has a one year low of $43.37 and a one year high of $67.57. The stock has a 50-day moving average of $51.98 and a 200 day moving average of $52.78. The company has a market capitalization of $2.70 billion, a price-to-earnings ratio of 12.41, a PEG ratio of 2.36 and a beta of 1.34.

KB Home (NYSE:KBH) last posted its earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.88 by $0.17. The business had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.30 billion. KB Home had a net margin of 4.39% and a return on equity of 6.56%. The business’s revenue for the quarter was down 20.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.61 EPS. On average, equities analysts predict that KB Home will post 3.25 earnings per share for the current fiscal year.

Insider Activity at KB Home

In other news, EVP Albert Z. Praw sold 22,015 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the completion of the sale, the executive vice president owned 104,062 shares of the company’s stock, valued at $6,108,439.40. The trade was a 17.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Arthur Collins sold 4,000 shares of the company’s stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $56.96, for a total value of $227,840.00. Following the completion of the sale, the director owned 9,157 shares of the company’s stock, valued at $521,582.72. This trade represents a 30.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 4.69% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On KB Home

A number of institutional investors have recently bought and sold shares of the stock. BlackRock Inc. bought a new stake in KB Home during the second quarter valued at about $618,489,000. Donald Smith & CO. Inc. bought a new position in shares of KB Home in the second quarter worth about $108,652,000. Bamco Inc. NY bought a new position in shares of KB Home in the second quarter worth about $37,500,000. Bank of New York Mellon Corp purchased a new position in shares of KB Home during the 2nd quarter valued at about $35,837,000. Finally, Bank of America Corp DE purchased a new position in shares of KB Home during the 2nd quarter valued at about $35,377,000. 96.09% of the stock is owned by institutional investors.

KB Home Company Profile

KB Home is a national homebuilder that designs, constructs and sells single-family homes and townhomes. The company offers homes in a range of floor plans, sizes and price points, with options that allow buyers to personalize features and finishes. Its communities typically include amenities such as parks, open spaces and other neighborhood improvements.

Founded in 1957, KB Home is headquartered in Los Angeles, California. The company serves residential markets across the United States, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.