JPMorgan Chase & Co. Has Lowered Expectations for KB Home (NYSE:KBH) Stock Price

KB Home (NYSE:KBH) had its price objective cut by equities research analysts at JPMorgan Chase & Co. from $71.00 to $50.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a “neutral” rating on the construction company’s stock. JPMorgan Chase & Co.‘s price target points to a potential downside of 12.19% from the company’s current price.

Several other research analysts have also recently issued reports on the company. Barclays dropped their price objective on KB Home from $71.00 to $62.00 and set an “overweight” rating on the stock in a research note on Monday, December 22nd. Oppenheimer assumed coverage on KB Home in a research report on Wednesday, September 3rd. They set a “market perform” rating on the stock. Evercore ISI set a $65.00 price target on KB Home and gave the company an “in-line” rating in a research note on Tuesday, October 7th. Wells Fargo & Company lowered their price objective on shares of KB Home from $60.00 to $55.00 and set an “underweight” rating for the company in a research note on Friday, December 19th. Finally, Raymond James Financial cut shares of KB Home from an “outperform” rating to a “market perform” rating in a report on Wednesday, December 24th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $63.82.

KB Home Price Performance

KBH stock opened at $56.94 on Monday. KB Home has a 12 month low of $48.90 and a 12 month high of $72.64. The firm’s 50-day moving average is $61.54 and its 200 day moving average is $60.31. The company has a market capitalization of $3.69 billion, a PE ratio of 11.60, a P/E/G ratio of 2.52 and a beta of 1.40.

KB Home (NYSE:KBH) last issued its earnings results on Thursday, December 18th. The construction company reported $1.92 EPS for the quarter, topping analysts’ consensus estimates of $1.79 by $0.13. The business had revenue of $1.69 billion for the quarter, compared to the consensus estimate of $1.66 billion. KB Home had a net margin of 6.88% and a return on equity of 11.40%. The company’s revenue for the quarter was down 15.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.52 EPS. Sell-side analysts forecast that KB Home will post 8.42 EPS for the current fiscal year.

Insider Activity at KB Home

In other news, EVP Albert Z. Praw sold 20,284 shares of the firm’s stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $60.08, for a total value of $1,218,662.72. Following the sale, the executive vice president directly owned 104,062 shares in the company, valued at approximately $6,252,044.96. This trade represents a 16.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 3.89% of the company’s stock.

Hedge Funds Weigh In On KB Home

Hedge funds have recently modified their holdings of the stock. Freestone Grove Partners LP acquired a new stake in KB Home in the 3rd quarter worth approximately $111,050,000. Norges Bank acquired a new position in KB Home during the 2nd quarter valued at approximately $55,329,000. Deprince Race & Zollo Inc. purchased a new position in shares of KB Home in the third quarter worth $59,301,000. AQR Capital Management LLC lifted its stake in shares of KB Home by 116.1% during the first quarter. AQR Capital Management LLC now owns 942,479 shares of the construction company’s stock worth $53,957,000 after buying an additional 506,415 shares during the period. Finally, Jacobs Levy Equity Management Inc. lifted its stake in shares of KB Home by 326.7% during the first quarter. Jacobs Levy Equity Management Inc. now owns 456,200 shares of the construction company’s stock worth $26,514,000 after buying an additional 349,298 shares during the period. Institutional investors and hedge funds own 96.09% of the company’s stock.

KB Home Company Profile

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation’s largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.