Brokerages Set KB Home (NYSE:KBH) Price Target at $75.21

KB Home (NYSE:KBH – Get Free Report) has garnered a consensus rating of "Hold" from thirteen research firms monitoring the company, as reported by MarketBeat Ratings. Among these analysts, two have assigned a sell rating, seven have a hold rating, three have given a buy rating, and one has issued a strong buy rating. The average one-year price target for KB Home from these analysts stands at $75.21.

Several financial institutions have shared their insights on KB Home. Wells Fargo & Company recently reduced their price target from $65.00 to $63.00, maintaining an "underweight" rating in an update released on March 10th. Raymond James reaffirmed their "outperform" rating, adjusting their price target from $93.00 to $80.00 on January 21st. Barclays also revised its price target downward from $85.00 to $60.00, labeling the stock as "equal weight" in their report dated January 14th. Additionally, Keefe, Bruyette & Woods decreased their target from $85.00 to $76.00, issuing a "market perform" rating in a note released on January 17th. UBS Group also lowered its target price from $105.00 to $100.00 while maintaining a "buy" rating, according to their research dated January 8th.

Recent Performance of KB Home Stock

On a recent trading day, KB Home shares opened at $61.21. The company has a market capitalization of $4.37 billion, with a price-to-earnings (P/E) ratio of 7.23 and a P/E/G ratio of 0.90. Its stock beta is 1.89. Over the last year, KB Home has seen a price range between $59.00 and $89.70. The company's 50-day simple moving average is $64.29, while the 200-day simple moving average stands at $73.34. In terms of liquidity, KB Home has a debt-to-equity ratio of 0.42, a quick ratio of 0.83, and a current ratio of 5.51.

Financial Results

KB Home reported its quarterly earnings on January 13th, revealing earnings per share (EPS) of $2.52, which surpassed the consensus estimate of $2.44 by $0.08. The company generated $2 billion in revenue during the quarter, exceeding the analyst estimate of $1.99 billion. With a return on equity of 16.46% and a net margin of 9.45%, KB Home’s quarterly revenue increased by 19.5% year-over-year. In the previous year, the firm reported an EPS of $1.85. Analysts anticipate that KB Home will achieve an average EPS of 8.42 for the current fiscal year.

Dividend Announcement

The company has recently announced a quarterly dividend, which was paid out on February 20th. Shareholders on record as of February 6th received a dividend of $0.25. The ex-dividend date was also February 6th. This translates to an annualized dividend of $1.00, providing a yield of 1.63%. Currently, KB Home maintains a dividend payout ratio (DPR) of 11.81%.

Insider Transactions

In a recent development, Chief Financial Officer Jeff Kaminski sold 27,500 shares of KB Home stock on January 28th for an average price of $68.77, amounting to a total sale value of $1,891,175. Following this transaction, he holds 34,473 shares in the company, valued at approximately $2,370,708. This sale represented a 44.37% reduction in his position. The transaction was disclosed in a filing with the SEC, and currently, insiders own 4.44% of the company’s stock.

Institutional Investors and KB Home

Several institutional investors have either increased their stakes in KB Home or reduced them recently. Jones Financial Companies Lllp raised its position in KB Home shares by 65.6% during the fourth quarter, now holding 540 shares valued at $36,000 after acquiring an additional 214 shares during this period. Principal Securities Inc. increased its holdings by 43.6%, now owning 590 shares worth $39,000 after purchasing 179 more shares. Wilmington Savings Fund Society FSB has acquired a new stake during the third quarter valued at $59,000, while Banque Cantonale Vaudoise made a similar acquisition worth $61,000. Versant Capital Management Inc. also boosted its holdings by 275.7%, now holding 759 shares valued at $50,000. Currently, institutional investors own 96.09% of KB Home’s stock.

Company Overview

KB Home operates as a homebuilding company across the United States, structured into four segments: West Coast, Southwest, Central, and Southeast. They specialize in constructing and selling a range of housing options, including both attached and detached homes, townhomes, and condominiums. Their primary focus is on serving first-time buyers, those looking to upgrade to a larger home, second-move up buyers, and active adult homebuyers.

Stocks, Market, Analysis