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 note issued to investors on Monday.
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.”
Several other research firms have also issued reports on KBH. BidaskClub lowered KB Home from a “strong-buy” rating to a “buy” rating in a research note on Friday, August 11th. Mizuho lowered KB Home from a “neutral” rating to an “underperform” rating and set a $21.00 price objective on the stock. in a research note on Monday, July 10th. Deutsche Bank AG upped their price objective on KB Home from $20.00 to $23.00 and gave the company a “hold” rating in a research note on Friday, June 30th. Barclays PLC restated a “sell” rating and issued a $17.00 price objective on shares of KB Home in a research note on Friday, June 30th. Finally, Bank of America Corporation upped their price objective on KB Home from $17.00 to $19.00 and gave the company an “underperform” rating in a research note on Wednesday, June 28th. Five equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and two have assigned a buy rating to the company’s stock. KB Home currently has a consensus rating of “Hold” and a consensus target price of $20.93.
KB Home (NYSE KBH) traded up 0.67% during mid-day trading on Monday, reaching $21.02. The company’s stock had a trading volume of 1,565,027 shares. The company has a 50 day moving average of $22.15 and a 200-day moving average of $21.46. KB Home has a 52-week low of $14.06 and a 52-week high of $24.37. The stock has a market cap of $1.80 billion, a PE ratio of 16.19 and a beta of 1.60.
KB Home (NYSE:KBH) last released its quarterly earnings data on Tuesday, June 27th. The construction company reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.07. The firm had revenue of $1 billion for the quarter, compared to analyst estimates of $929.85 million. KB Home had a return on equity of 7.11% and a net margin of 3.13%. The business’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.17 earnings per share. Equities analysts forecast that KB Home will post $1.68 earnings per share for the current year.
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In related news, CFO Jeff Kaminski sold 163,017 shares of the stock in a transaction that occurred on Thursday, June 29th. The stock was sold at an average price of $23.40, for a total transaction of $3,814,597.80. Following the sale, the chief financial officer now owns 178,251 shares of the company’s stock, valued at $4,171,073.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jeffrey T. Mezger sold 400,000 shares of the stock in a transaction that occurred on 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 sale, the insider now directly owns 682,996 shares in the company, valued at approximately $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 in the last three months. 8.60% of the stock is currently owned by company insiders.
A number of large investors have recently modified their holdings of KBH. Russell Investments Group Ltd. grew its position in KB Home by 1,401.0% during the first quarter. Russell Investments Group Ltd. now owns 79,900 shares of the construction company’s stock worth $1,588,000 after buying an additional 74,577 shares in the last quarter. Great West Life Assurance Co. Can boosted its holdings in shares of KB Home by 4.5% in the 1st quarter. Great West Life Assurance Co. Can now owns 48,962 shares of the construction company’s stock valued at $973,000 after purchasing an additional 2,093 shares in the last quarter. First Trust Advisors LP boosted its holdings in shares of KB Home by 39.1% in the 1st quarter. First Trust Advisors LP now owns 151,290 shares of the construction company’s stock valued at $3,008,000 after purchasing an additional 42,540 shares in the last quarter. Comerica Bank boosted its holdings in shares of KB Home by 4.6% in the 1st quarter. Comerica Bank now owns 63,963 shares of the construction company’s stock valued at $1,352,000 after purchasing an additional 2,814 shares in the last quarter. Finally, Swiss National Bank boosted its holdings in shares of KB Home by 1.7% in the 1st quarter. Swiss National Bank now owns 125,700 shares of the construction company’s stock valued at $2,499,000 after purchasing an additional 2,100 shares in the last quarter. 98.37% of the stock is currently owned by institutional investors and hedge funds.
About KB Home
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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