KB Home (KBH) Cut to Hold at Zacks Investment Research
KB Home (NYSE:KBH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “KB Home shares have outperformed its industry, year to date. It has formulated the right strategy to boost scale in existing geographic footprint, improve profitability per unit, generate higher operating margin and drive earnings, while simultaneously generating positive cash flow to invest in growth and debt reduction. The company’s first half of fiscal 2017 results show an impressive 22% growth in revenues and a double-digit increase in deliveries and housing revenues along with 58% surge in profit level. Strong orders in value (up 21.8%) and backlog (up 19%) in the first half also bode well. However, higher construction and labor costs, rising interest rate as well as competitive pricing pressure are pressing concerns.”
Other equities analysts have also issued reports about the stock. Barclays PLC lowered shares of KB Home to a “sell” rating in a research note on Tuesday, July 11th. Mizuho downgraded KB Home from a “neutral” rating to an “underperform” rating and set a $21.00 price target for the company. in a report on Monday, July 10th. Deutsche Bank AG increased their price target on KB Home from $20.00 to $23.00 and gave the stock a “hold” rating in a report on Friday, June 30th. MKM Partners raised KB Home to a “hold” rating and increased their price target for the stock from $20.00 to $24.00 in a report on Tuesday, June 27th. Finally, Bank of America Corporation increased their price target on KB Home from $17.00 to $19.00 and gave the stock an “underperform” rating in a report on Wednesday, June 28th. Five investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and two have assigned a buy rating to the company. KB Home presently has a consensus rating of “Hold” and a consensus target price of $19.88.
KB Home (KBH) traded down 2.78% on Tuesday, reaching $20.99. 816,046 shares of the company’s stock were exchanged. KB Home has a one year low of $14.06 and a one year high of $24.37. The firm has a 50 day moving average of $22.78 and a 200-day moving average of $21.08. The stock has a market cap of $1.80 billion, a price-to-earnings ratio of 16.17 and a beta of 1.60.
KB Home (NYSE:KBH) last released its earnings results on Tuesday, June 27th. The construction company reported $0.33 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.26 by $0.07. KB Home had a net margin of 3.13% and a return on equity of 7.11%. The firm had revenue of $1 billion for the quarter, compared to analyst estimates of $929.85 million. During the same period in the prior year, the firm earned $0.17 earnings per share. The business’s quarterly revenue was up 23.7% compared to the same quarter last year. Equities research analysts forecast that KB Home will post $1.71 EPS for the current fiscal year.
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In other KB Home news, CFO Jeff Kaminski sold 163,017 shares of the company’s stock in a transaction dated Thursday, June 29th. The stock was sold at an average price of $23.40, for a total value of $3,814,597.80. Following the transaction, the chief financial officer now directly owns 178,251 shares of the company’s stock, valued at approximately $4,171,073.40. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Jeffrey T. Mezger sold 400,000 shares of the company’s stock in a transaction dated Monday, August 14th. The stock was sold at an average price of $22.81, for a total value of $9,124,000.00. Following the completion of the transaction, the insider now directly owns 682,996 shares in the company, valued at $15,579,138.76. The disclosure for this sale can be found here. Insiders have sold 620,422 shares of company stock worth $14,269,820 over the last three months. 8.60% of the stock is owned by insiders.
Hedge funds have recently modified their holdings of the business. Lord Abbett & CO. LLC increased its holdings in shares of KB Home by 19.5% during the 2nd quarter. Lord Abbett & CO. LLC now owns 912,190 shares of the construction company’s stock valued at $21,865,000 after acquiring an additional 148,940 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in KB Home during the 2nd quarter valued at approximately $885,000. Public Employees Retirement System of Ohio boosted its stake in KB Home by 73.6% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 38,182 shares of the construction company’s stock valued at $915,000 after purchasing an additional 16,183 shares during the period. Strategic Wealth Advisors Group LLC boosted its stake in KB Home by 171.8% during the 2nd quarter. Strategic Wealth Advisors Group LLC now owns 30,638 shares of the construction company’s stock valued at $734,000 after purchasing an additional 19,364 shares during the period. Finally, Sterling Capital Management LLC bought a new stake in KB Home during the 2nd quarter valued at approximately $1,132,000. 98.37% of the stock is currently owned by institutional investors.
KB Home Company Profile
KB HOME is a homebuilding company. The Company is engaged in selling and building a range of new homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family residential homes. It operates through five segments, which consist of four homebuilding segments and one financial services segment.
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