Zacks Investment Research upgraded shares of KB Home (NYSE:KBH) from a sell rating to a hold rating in a research report sent to investors on Monday morning.
According to Zacks, “KB Home focuses on strategic initiatives like boosting community count, achieving higher revenue per community, higher profitability per unit, and increasing asset efficiency and return on capital invested to drive growth. The company opens communities in highly favorable submarkets where housing demand is strong and supply is limited. It also focuses on profit per unit by improving cost efficiencies without compromising on the quality of the product. However, KB Home’s community count, which declined during third-quarter 2016, is expected to drop further in the fourth quarter. The company does not expect community count to recover till 2017 beginning. Though demand in Houston is stabilizing, it will take a while before it rebounds.”
A number of other equities analysts also recently issued reports on the company. MKM Partners set a $13.00 price target on KB Home and gave the stock a hold rating in a research report on Wednesday, September 14th. Wedbush began coverage on KB Home in a report on Monday, September 19th. They set an outperform rating and a $22.00 target price for the company. Buckingham Research raised KB Home from a neutral rating to a buy rating in a report on Monday, September 19th. Wells Fargo & Co. began coverage on KB Home in a report on Wednesday, September 28th. They set a market perform rating for the company. Finally, Evercore ISI began coverage on KB Home in a report on Monday, November 14th. They set a hold rating for the company. Three investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and three have assigned a buy rating to the stock. KB Home has a consensus rating of Hold and an average price target of $15.57.
KB Home (NYSE:KBH) opened at 15.75 on Monday. The stock has a 50 day moving average price of $15.19 and a 200-day moving average price of $15.09. KB Home has a one year low of $9.04 and a one year high of $16.76. The stock has a market cap of $1.34 billion, a PE ratio of 13.64 and a beta of 2.07.
KB Home (NYSE:KBH) last issued its quarterly earnings results on Tuesday, September 20th. The company reported $0.42 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.39 by $0.03. The company had revenue of $913.30 million for the quarter. KB Home had a return on equity of 6.77% and a net margin of 3.31%. The business’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.23 EPS. Equities research analysts expect that KB Home will post $1.27 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Thursday, November 17th. Stockholders of record on Thursday, November 3rd were given a dividend of $0.025 per share. The ex-dividend date of this dividend was Tuesday, November 1st. This represents a $0.10 annualized dividend and a dividend yield of 0.63%. KB Home’s dividend payout ratio is currently 8.62%.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Creative Planning raised its position in KB Home by 6.0% in the third quarter. Creative Planning now owns 9,409 shares of the company’s stock valued at $152,000 after buying an additional 529 shares in the last quarter. Amalgamated Bank bought a new position in KB Home during the second quarter worth about $161,000. Teacher Retirement System of Texas raised its position in KB Home by 5.3% in the second quarter. Teacher Retirement System of Texas now owns 10,689 shares of the company’s stock worth $163,000 after buying an additional 538 shares during the period. Capstone Investment Advisors LLC bought a new position in KB Home during the second quarter worth about $166,000. Finally, Bank of Hawaii bought a new position in KB Home during the third quarter worth about $188,000. Institutional investors and hedge funds own 91.86% of the company’s stock.
About KB Home
KB Home is a homebuilding company in the United States. The Company constructs and sells a range of new homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family residential homes, townhomes and condominiums. Its segments include the West Coast, Southwest, Central and Southeast homebuilding segments, and financial services segment.