KB Home (NYSE:KBH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday, Zacks.com reports. The firm currently has a $27.00 price target on the construction company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 2.66% from the company’s previous close.
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.”
Several other research analysts also recently issued reports on KBH. BTIG Research upgraded shares of KB Home from a “sell” rating to a “neutral” rating and set a $25.73 price objective on the stock in a report on Monday, July 1st. ValuEngine upgraded shares of KB Home from a “sell” rating to a “hold” rating in a report on Thursday, April 11th. Credit Suisse Group boosted their price objective on shares of KB Home from $17.00 to $20.00 and gave the stock an “underperform” rating in a report on Wednesday, March 27th. Bank of America restated a “neutral” rating and set a $28.00 price objective (up previously from $26.00) on shares of KB Home in a report on Thursday, June 27th. Finally, Raymond James upgraded shares of KB Home from an “underperform” rating to a “market perform” rating and set a $25.39 price objective on the stock in a report on Friday, June 28th. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and nine have issued a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $26.88.
KB Home stock opened at $26.30 on Monday. The firm has a market cap of $2.31 billion, a price-to-earnings ratio of 9.33, a price-to-earnings-growth ratio of 1.17 and a beta of 1.42. KB Home has a fifty-two week low of $16.82 and a fifty-two week high of $28.26. The stock’s fifty day moving average price is $25.88.
KB Home (NYSE:KBH) last released its earnings results on Wednesday, June 26th. The construction company reported $0.51 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.39 by $0.12. The firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $933.49 million. KB Home had a net margin of 5.94% and a return on equity of 12.43%. The business’s revenue was down 7.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.57 EPS. As a group, research analysts predict that KB Home will post 2.69 earnings per share for the current year.
In related news, insider Jeffrey T. Mezger sold 489,258 shares of the company’s stock in a transaction dated 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 owns 1,056,532 shares of the company’s stock, valued at $26,804,216.84. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Brian J. Woram sold 10,000 shares of the company’s stock in a transaction dated Tuesday, May 14th. The shares were sold at an average price of $27.02, for a total transaction of $270,200.00. Following the completion of the sale, the executive vice president now directly owns 151,770 shares in the company, valued at approximately $4,100,825.40. The disclosure for this sale can be found here. In the last three months, insiders sold 983,838 shares of company stock worth $25,116,916. 7.32% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of KBH. Liberty Wealth Management LLC bought a new stake in KB Home in the fourth quarter valued at about $25,000. Quadrant Capital Group LLC grew its stake in 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 worth $47,000 after buying an additional 1,949 shares during the last quarter. Penserra Capital Management LLC bought a new stake in KB Home during the first quarter worth about $59,000. Quantamental Technologies LLC bought a new stake in KB Home during the first quarter worth about $70,000. Finally, ETF Managers Group LLC grew its stake in KB Home by 11.2% during the first quarter. ETF Managers Group LLC now owns 5,042 shares of the construction company’s stock worth $122,000 after buying an additional 506 shares during the last quarter. 89.53% of the stock is currently owned by institutional investors and hedge funds.
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.
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