KB Home (KBH) Rating Increased to Outperform at Royal Bank of Canada

Royal Bank of Canada upgraded shares of KB Home (NYSE:KBH) from a sector perform rating to an outperform rating in a research note released on Thursday morning, Benzinga reports. The firm currently has $30.00 target price on the construction company’s stock, up from their previous target price of $25.00.

KBH has been the topic of several other research reports. Credit Suisse Group restated a sell rating and issued a $17.00 target price on shares of KB Home in a report on Friday, February 15th. Raymond James cut shares of KB Home from an outperform rating to a market perform rating and set a $23.67 target price on the stock. in a report on Monday, February 25th. Buckingham Research raised their target price on shares of KB Home from $24.00 to $27.00 and gave the stock a neutral rating in a report on Wednesday, March 27th. Wedbush restated a neutral rating and issued a $22.00 target price on shares of KB Home in a report on Thursday, March 21st. Finally, JPMorgan Chase & Co. upgraded shares of KB Home from an underweight rating to a neutral rating and raised their target price for the stock from $20.50 to $23.00 in a report on Wednesday, April 10th. Two investment analysts have rated the stock with a sell rating, eleven have given a hold rating and seven have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Hold and an average price target of $25.92.

KBH stock traded down $0.05 on Thursday, hitting $27.32. The company had a trading volume of 38,258 shares, compared to its average volume of 1,309,821. KB Home has a 12-month low of $16.82 and a 12-month high of $28.33. The company has a current ratio of 5.37, a quick ratio of 0.98 and a debt-to-equity ratio of 1.04. The stock has a market capitalization of $2.33 billion, a P/E ratio of 9.69, a P/E/G ratio of 1.24 and a beta of 1.58.

KB Home (NYSE:KBH) last issued its earnings results on Tuesday, March 26th. The construction company reported $0.31 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.25 by $0.06. KB Home had a net margin of 6.05% and a return on equity of 13.34%. The company had revenue of $811.50 million for the quarter, compared to analysts’ expectations of $828.56 million. During the same quarter last year, the company posted $2.12 earnings per share. The firm’s quarterly revenue was down 6.9% on a year-over-year basis. As a group, equities analysts predict that KB Home will post 2.63 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 16th. Stockholders of record on Thursday, May 2nd were paid a dividend of $0.025 per share. This represents a $0.10 annualized dividend and a dividend yield of 0.37%. The ex-dividend date of this dividend was Wednesday, May 1st. KB Home’s dividend payout ratio is presently 3.55%.

In other news, EVP Brian J. Woram sold 10,000 shares of KB Home stock in a transaction on Tuesday, May 14th. The shares were sold at an average price of $27.02, for a total transaction of $270,200.00. Following the transaction, the executive vice president now owns 151,770 shares in the company, valued at approximately $4,100,825.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Jeffrey T. Mezger sold 183,257 shares of KB Home stock in a transaction on Monday, April 15th. The stock was sold at an average price of $25.41, for a total transaction of $4,656,560.37. Following the transaction, the chief executive officer now owns 1,056,532 shares in the company, valued at approximately $26,846,478.12. The disclosure for this sale can be found here. Insiders have sold a total of 983,838 shares of company stock worth $25,116,916 in the last quarter. Corporate insiders own 7.32% of the company’s stock.

Several institutional investors have recently modified their holdings of KBH. Vanguard Group Inc. boosted its stake in shares of KB Home by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 8,050,306 shares of the construction company’s stock worth $192,483,000 after acquiring an additional 198,509 shares during the last quarter. Federated Investors Inc. PA raised its position in shares of KB Home by 38.7% during the 3rd quarter. Federated Investors Inc. PA now owns 702,873 shares of the construction company’s stock valued at $16,806,000 after purchasing an additional 196,078 shares during the period. Retirement Systems of Alabama raised its position in shares of KB Home by 1.1% during the 4th quarter. Retirement Systems of Alabama now owns 111,749 shares of the construction company’s stock valued at $2,134,000 after purchasing an additional 1,162 shares during the period. Fox Run Management L.L.C. bought a new stake in shares of KB Home during the 4th quarter valued at $237,000. Finally, Virtu Financial LLC bought a new stake in shares of KB Home during the 4th quarter valued at $320,000. Institutional investors and hedge funds own 86.45% of the company’s stock.

About KB Home

KB Home operates as a homebuilding company in the United States. It operates in four segments: West Coast, Southwest, Central, and Southeast. The company builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, and active adult homebuyers.

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Analyst Recommendations for KB Home (NYSE:KBH)

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