Wells Fargo & Company Issues Pessimistic Forecast for KB Home (NYSE:KBH) Stock Price

KB Home (NYSE:KBH) had its price objective decreased by Wells Fargo & Company from $65.00 to $63.00 in a report issued on Monday,Benzinga reports. Wells Fargo & Company currently has an underweight rating on the construction company’s stock.

KBH has been the topic of several other reports. JPMorgan Chase & Co. decreased their target price on shares of KB Home from $82.00 to $74.50 and set a “neutral” rating on the stock in a report on Wednesday, January 15th. The Goldman Sachs Group decreased their target price on shares of KB Home from $81.00 to $72.00 and set a “neutral” rating on the stock in a report on Friday, March 7th. Royal Bank of Canada raised shares of KB Home from an “underperform” rating to a “sector perform” rating and decreased their target price for the company from $70.00 to $67.00 in a report on Friday, January 10th. Keefe, Bruyette & Woods decreased their target price on shares of KB Home from $85.00 to $76.00 and set a “market perform” rating on the stock in a report on Friday, January 17th. Finally, Seaport Res Ptn raised shares of KB Home from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 6th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, KB Home currently has an average rating of “Hold” and an average target price of $75.21.

KB Home Price Performance

NYSE:KBH opened at $61.44 on Monday. KB Home has a 52 week low of $59.00 and a 52 week high of $89.70. The firm has a market cap of $4.43 billion, a price-to-earnings ratio of 7.25, a P/E/G ratio of 0.90 and a beta of 1.89. The firm’s 50-day simple moving average is $64.81 and its 200 day simple moving average is $74.24. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.83 and a current ratio of 5.51.

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

KB Home Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, February 20th. Investors of record on Thursday, February 6th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, February 6th. This represents a $1.00 annualized dividend and a yield of 1.63%. KB Home’s dividend payout ratio is presently 11.81%.

Insider Buying and Selling

In related news, CFO Jeff Kaminski sold 27,500 shares of KB Home 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 sale, the chief financial officer now directly owns 34,473 shares in the company, valued at $2,370,708.21. This trade represents a 44.37 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 3.52% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On KB Home

Several hedge funds have recently added to or reduced their stakes in KBH. Jones Financial Companies Lllp boosted its position in KB Home by 65.6% during the 4th quarter. Jones Financial Companies Lllp now owns 540 shares of the construction company’s stock worth $36,000 after buying an additional 214 shares during the period. Principal Securities Inc. lifted its position in shares of KB Home by 43.6% in the 4th quarter. Principal Securities Inc. now owns 590 shares of the construction company’s stock worth $39,000 after purchasing an additional 179 shares during the period. Versant Capital Management Inc lifted its position in shares of KB Home by 275.7% in the 4th quarter. Versant Capital Management Inc now owns 759 shares of the construction company’s stock worth $50,000 after purchasing an additional 557 shares during the period. Amundi lifted its position in shares of KB Home by 29.6% in the 4th quarter. Amundi now owns 880 shares of the construction company’s stock worth $58,000 after purchasing an additional 201 shares during the period. Finally, Wilmington Savings Fund Society FSB acquired a new position in shares of KB Home in the 3rd quarter worth approximately $59,000. 96.09% 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 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.