Buckingham Research Lowers KB Home (KBH) to Underperform

KB Home (NYSE:KBH) was downgraded by research analysts at Buckingham Research from a “neutral” rating to an “underperform” rating in a research report issued on Friday, Marketbeat reports. They presently have a $34.00 price target on the construction company’s stock. Buckingham Research’s price target points to a potential downside of 8.06% from the stock’s previous close.

Several other analysts have also weighed in on KBH. Wedbush reiterated an “ourperform” rating and issued a $26.00 price objective on shares of KB Home in a research note on Saturday, September 16th. Zacks Investment Research upgraded shares of KB Home from a “hold” rating to a “buy” rating and set a $23.00 price objective for the company in a research note on Friday, September 22nd. KeyCorp reiterated a “hold” rating on shares of KB Home in a research note on Tuesday, September 26th. Mizuho upgraded shares of KB Home from an “underperform” rating to a “neutral” rating and set a $21.00 price objective for the company in a research note on Friday, September 29th. Finally, Credit Suisse Group lifted their price objective on shares of KB Home from $24.00 to $25.00 and gave the company a “neutral” rating in a research note on Friday, September 29th. Seven equities research analysts have rated the stock with a sell rating, ten have given a hold rating, one has issued a buy rating and two have issued a strong buy rating to the company. The company currently has a consensus rating of “Hold” and an average target price of $26.25.

Shares of KB Home (NYSE:KBH) traded down $1.60 during midday trading on Friday, hitting $36.98. 4,995,093 shares of the stock were exchanged, compared to its average volume of 2,500,000. The firm has a market cap of $3,200.00, a P/E ratio of 26.60, a P/E/G ratio of 0.67 and a beta of 1.69. The company has a quick ratio of 0.22, a current ratio of 5.36 and a debt-to-equity ratio of 1.21. KB Home has a 1 year low of $15.51 and a 1 year high of $38.80.

KB Home (NYSE:KBH) last released its quarterly earnings data on Wednesday, January 10th. The construction company reported $0.84 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.07. The company had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.36 billion. KB Home had a net margin of 4.13% and a return on equity of 9.93%. KB Home’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.40 EPS. sell-side analysts expect that KB Home will post 2.37 earnings per share for the current year.

A number of hedge funds have recently made changes to their positions in KBH. Schwab Charles Investment Management Inc. increased its stake in KB Home by 14.0% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 477,958 shares of the construction company’s stock valued at $11,457,000 after purchasing an additional 58,624 shares in the last quarter. Legal & General Group Plc increased its stake in KB Home by 18.9% during the 2nd quarter. Legal & General Group Plc now owns 64,665 shares of the construction company’s stock valued at $1,552,000 after purchasing an additional 10,262 shares in the last quarter. Victory Capital Management Inc. increased its stake in KB Home by 17.6% during the 2nd quarter. Victory Capital Management Inc. now owns 8,288 shares of the construction company’s stock valued at $199,000 after purchasing an additional 1,241 shares in the last quarter. Principal Financial Group Inc. increased its stake in KB Home by 7.8% during the 2nd quarter. Principal Financial Group Inc. now owns 362,697 shares of the construction company’s stock valued at $8,694,000 after purchasing an additional 26,395 shares in the last quarter. Finally, Northwestern Mutual Investment Management Company LLC increased its stake in KB Home by 0.7% during the 2nd quarter. Northwestern Mutual Investment Management Company LLC now owns 14,426 shares of the construction company’s stock valued at $219,000 after purchasing an additional 94 shares in the last quarter. Institutional investors and hedge funds own 96.73% of the company’s stock.

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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.