KB Home (NYSE:KBH) Reaches New 12-Month Low – Should You Sell?

Shares of KB Home (NYSE:KBH – Get Free Report) hit a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $44.03 and last traded at $44.0570, with a volume of 106760 shares trading hands. The stock had previously closed at $45.40.

Analyst Upgrades and Downgrades

A number of research firms recently commented on KBH. Wells Fargo & Company lowered their price objective 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. Zacks Research lowered KB Home from a “hold” rating to a “strong sell” rating in a report on Thursday, September 17th. Melius Research initiated coverage on KB Home in a report on Tuesday. They issued a “sell” rating and a $43.00 price target for the company. Keefe, Bruyette & Woods dropped their price target on KB Home from $65.00 to $54.00 and set a “market perform” rating on the stock in a research report on Monday. Finally, Citigroup reaffirmed an “outperform” rating on shares of KB Home in a research report on Wednesday, September 23rd. Four research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, KB Home currently has a consensus rating of “Hold” and an average target price of $53.08.

View Our Latest Research Report on KBH

KB Home Stock Up 0.9%

The firm has a market capitalization of $2.72 billion, a price-to-earnings ratio of 12.50, a price-to-earnings-growth ratio of 2.29 and a beta of 1.34. The business’s fifty day moving average is $51.75 and its 200 day moving average is $52.74.

KB Home (NYSE:KBH – Get Free Report) last announced its earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.88 by $0.17. KB Home had a net margin of 4.39% and a return on equity of 6.56%. The firm had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same period in the prior year, the business earned $1.61 EPS. The company’s revenue for the quarter was down 20.0% compared to the same quarter last year. Equities research analysts expect that KB Home will post 3.25 EPS for the current year.

KB Home Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Thursday, November 12th will be issued a dividend of $0.25 per share. The ex-dividend date is Thursday, November 12th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.3%. KB Home’s dividend payout ratio (DPR) is presently 28.17%.

Insider Transactions at KB Home

In related news, Director Arthur Collins sold 4,000 shares of KB Home stock in a transaction that occurred 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 sale, the director owned 9,157 shares of the company’s stock, valued at approximately $521,582.72. This trade represents a 30.40% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Albert Praw sold 22,015 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total value of $1,292,280.50. Following the completion of the sale, the executive vice president owned 104,062 shares in the company, valued at $6,108,439.40. The trade was a 17.46% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.69% of the stock is currently owned by company insiders.

Institutional Trading of KB Home

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC grew its position in KB Home by 26.3% in the third quarter. GAMMA Investing LLC now owns 2,470 shares of the construction company’s stock valued at $115,000 after purchasing an additional 514 shares in the last quarter. Polaris Financial Partners bought a new stake in KB Home during the 3rd quarter worth about $43,000. Cim Investment Management Inc. boosted its stake in shares of KB Home by 7.3% during the 2nd quarter. Cim Investment Management Inc. now owns 7,802 shares of the construction company’s stock worth $488,000 after buying an additional 528 shares during the last quarter. QRG Capital Management Inc. boosted its stake in shares of KB Home by 3.5% during the 2nd quarter. QRG Capital Management Inc. now owns 7,446 shares of the construction company’s stock worth $466,000 after buying an additional 252 shares during the last quarter. Finally, Van Hulzen Asset Management LLC acquired a new position in shares of KB Home during the 2nd quarter worth about $563,000. 96.09% of the stock is currently owned by institutional investors and hedge funds.

About KB Home

(Get Free Report)

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.

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