KB Home (NYSE:KBH) Shares Gap Down Following Analyst Downgrade

KB Home (NYSE:KBH)’s stock price gapped down prior to trading on Tuesday after Evercore ISI lowered their price target on the stock from $77.00 to $70.00. The stock had previously closed at $53.32, but opened at $51.31. Evercore ISI currently has an outperform rating on the stock. KB Home shares last traded at $53.26, with a volume of 949,280 shares trading hands.

A number of other equities research analysts have also commented on KBH. The Goldman Sachs Group reduced their price objective on shares of KB Home from $81.00 to $72.00 and set a “neutral” rating on the stock in a research note on Friday, March 7th. Wedbush reaffirmed a “neutral” rating and issued a $75.00 price objective on shares of KB Home in a research note on Tuesday, March 25th. Bank of America reduced their price objective on shares of KB Home from $58.00 to $54.00 and set a “neutral” rating on the stock in a research note on Tuesday. Royal Bank Of Canada reduced their price objective on shares of KB Home from $67.00 to $63.00 and set a “sector perform” rating on the stock in a research note on Tuesday, March 25th. Finally, Barclays reduced their price objective on shares of KB Home from $56.00 to $49.00 and set an “equal weight” rating on the stock in a research note on Tuesday. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating, three have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $66.77.

Insiders Place Their Bets

In other KB Home news, Director Arthur Reginald Collins sold 5,000 shares of the firm’s stock in a transaction on Friday, May 16th. The shares were sold at an average price of $54.38, for a total value of $271,900.00. Following the transaction, the director now directly owns 10,262 shares of the company’s stock, valued at approximately $558,047.56. This trade represents a 32.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 3.89% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. SG Americas Securities LLC lifted its stake in shares of KB Home by 11.5% in the first quarter. SG Americas Securities LLC now owns 10,252 shares of the construction company’s stock valued at $596,000 after buying an additional 1,057 shares in the last quarter. Assenagon Asset Management S.A. lifted its position in shares of KB Home by 112.4% during the first quarter. Assenagon Asset Management S.A. now owns 59,131 shares of the construction company’s stock valued at $3,437,000 after purchasing an additional 31,288 shares in the last quarter. Harbor Capital Advisors Inc. lifted its position in shares of KB Home by 73.7% during the first quarter. Harbor Capital Advisors Inc. now owns 608 shares of the construction company’s stock valued at $35,000 after purchasing an additional 258 shares in the last quarter. Northern Trust Corp lifted its position in shares of KB Home by 7.3% during the fourth quarter. Northern Trust Corp now owns 1,101,300 shares of the construction company’s stock valued at $72,377,000 after purchasing an additional 75,206 shares in the last quarter. Finally, Principal Securities Inc. lifted its position in shares of KB Home by 43.6% during the fourth quarter. Principal Securities Inc. now owns 590 shares of the construction company’s stock valued at $39,000 after purchasing an additional 179 shares in the last quarter. 96.09% of the stock is owned by institutional investors.

KB Home Price Performance

The company has a quick ratio of 0.56, a current ratio of 5.83 and a debt-to-equity ratio of 0.47. The business’s 50-day moving average is $52.94 and its two-hundred day moving average is $59.74. The company has a market capitalization of $3.71 billion, a P/E ratio of 6.85, a price-to-earnings-growth ratio of 3.96 and a beta of 1.35.

KB Home (NYSE:KBH) last announced its quarterly earnings data on Monday, June 23rd. The construction company reported $1.50 EPS for the quarter, topping the consensus estimate of $1.45 by $0.05. KB Home had a net margin of 8.47% and a return on equity of 14.02%. The business had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.51 billion. During the same quarter in the previous year, the firm posted $2.15 earnings per share. The company’s revenue for the quarter was down 10.5% on a year-over-year basis. As a group, analysts predict that KB Home will post 8.42 earnings per share for the current year.

KB Home Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 22nd. Stockholders of record on Thursday, May 8th were given a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 1.93%. The ex-dividend date was Thursday, May 8th. KB Home’s dividend payout ratio (DPR) is currently 13.25%.

About KB Home

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.