KB Home (NYSE:KBH) Sets New 1-Year Low – Time to Sell?

Shares of KB Home (NYSE:KBH) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $59.89 and last traded at $61.05, with a volume of 170662 shares traded. The stock had previously closed at $61.26.

Wall Street Analysts Forecast Growth

A number of research firms have commented on KBH. Barclays cut their target price on shares of KB Home from $85.00 to $60.00 and set an “equal weight” rating for the company in a research report on Tuesday, January 14th. UBS Group cut their price objective on shares of KB Home from $105.00 to $100.00 and set a “buy” rating for the company in a research report on Wednesday, January 8th. Keefe, Bruyette & Woods decreased their target price on KB Home from $85.00 to $76.00 and set a “market perform” rating on the stock in a report on Friday, January 17th. Bank of America cut their price target on KB Home from $76.00 to $71.00 and set a “neutral” rating for the company in a report on Monday, January 27th. Finally, Wells Fargo & Company lowered their price objective on KB Home from $70.00 to $65.00 and set an “underweight” rating on the stock in a research report on Tuesday, January 28th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, KB Home currently has a consensus rating of “Hold” and an average price target of $76.21.

KB Home Stock Performance

The business has a 50-day moving average of $65.68 and a 200-day moving average of $75.65. The company has a market capitalization of $4.56 billion, a P/E ratio of 7.46, a P/E/G ratio of 0.90 and a beta of 1.86. The company has a debt-to-equity ratio of 0.42, a current ratio of 5.51 and a quick ratio of 0.83.

KB Home (NYSE:KBH) last announced its quarterly earnings data on Monday, January 13th. The construction company reported $2.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.44 by $0.08. The business had revenue of $2 billion during the quarter, compared to the consensus estimate of $1.99 billion. KB Home had a net margin of 9.45% and a return on equity of 16.46%. The firm’s quarterly revenue was up 19.5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.85 earnings per share. On average, sell-side analysts anticipate that KB Home will post 8.42 EPS for the current year.

KB Home Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, February 20th. Shareholders of record on Thursday, February 6th were given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.58%. The ex-dividend date was Thursday, February 6th. KB Home’s dividend payout ratio (DPR) is presently 11.81%.

Insiders Place Their Bets

In other news, CFO Jeff Kaminski sold 27,500 shares of the firm’s stock in a transaction that occurred on Tuesday, January 28th. The shares were sold at an average price of $68.77, for a total transaction of $1,891,175.00. Following the transaction, the chief financial officer now directly owns 34,473 shares of the company’s stock, valued at approximately $2,370,708.21. This trade represents a 44.37 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 4.44% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Barclays PLC boosted its position in KB Home by 24.5% during the 3rd quarter. Barclays PLC now owns 196,229 shares of the construction company’s stock valued at $16,816,000 after acquiring an additional 38,638 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in KB Home by 22.1% in the third quarter. Charles Schwab Investment Management Inc. now owns 906,236 shares of the construction company’s stock valued at $77,655,000 after purchasing an additional 164,010 shares during the last quarter. Neo Ivy Capital Management purchased a new position in shares of KB Home in the 3rd quarter worth approximately $956,000. Blue Trust Inc. lifted its position in KB Home by 35.9% during the fourth quarter. Blue Trust Inc. now owns 1,727 shares of the construction company’s stock valued at $113,000 after acquiring an additional 456 shares during the last quarter. Finally, Cerity Partners LLC grew its stake in KB Home by 24.7% during the 3rd quarter. Cerity Partners LLC now owns 38,742 shares of the construction company’s stock worth $3,320,000 after buying an additional 7,679 shares during the last quarter. 96.09% of the stock is currently owned by hedge funds and other institutional investors.

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.