KB Home (KBH) Stock Rating Upgraded by Zacks Investment Research
KB Home (NYSE:KBH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The brokerage presently has a $23.00 price objective on the construction company’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 9.76% from the stock’s previous close.
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 brokerages also recently weighed in on KBH. BidaskClub downgraded KB Home from a “strong-buy” rating to a “buy” rating in a report on Friday, August 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 raised their price target on KB Home from $20.00 to $23.00 and gave the company a “hold” rating in a report on Friday, June 30th. Barclays PLC restated a “sell” rating and set a $17.00 price target on shares of KB Home in a report on Friday, June 30th. Finally, Bank of America Corporation raised their price target on KB Home from $17.00 to $19.00 and gave the company an “underperform” rating in a report on Wednesday, June 28th. Five investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and three have assigned a buy rating to the company’s stock. KB Home presently has a consensus rating of “Hold” and a consensus target price of $20.60.
Shares of KB Home (NYSE:KBH) traded up 0.87% during trading on Friday, hitting $20.96. 4,464,283 shares of the company were exchanged. The stock has a market capitalization of $1.79 billion, a PE ratio of 16.15 and a beta of 1.60. KB Home has a 1-year low of $14.06 and a 1-year high of $24.37. The company has a 50 day moving average of $22.15 and a 200-day moving average of $21.46.
KB Home (NYSE:KBH) last issued its quarterly earnings results on Tuesday, June 27th. The construction company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.07. KB Home had a return on equity of 7.11% and a net margin of 3.13%. The firm had revenue of $1 billion during the quarter, compared to the consensus estimate of $929.85 million. During the same period last year, the company earned $0.17 earnings per share. The company’s revenue was up 23.7% on a year-over-year basis. On average, analysts forecast that KB Home will post $1.69 earnings per share for the current year.
In other KB Home news, insider Jeffrey T. Mezger sold 400,000 shares of the firm’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 transaction, the insider now directly owns 682,996 shares of the company’s stock, valued at $15,579,138.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Jeff Kaminski sold 163,017 shares of the firm’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 completion of the transaction, the chief financial officer now directly owns 178,251 shares in the company, valued at $4,171,073.40. The disclosure for this sale can be found here. Insiders sold 620,422 shares of company stock worth $14,269,820 over the last three months. Insiders own 8.60% of the company’s stock.
A number of large investors have recently made changes to their positions in KBH. BlackRock Inc. boosted its position in KB Home by 19,999.6% in the first quarter. BlackRock Inc. now owns 10,064,270 shares of the construction company’s stock worth $200,078,000 after purchasing an additional 10,014,198 shares during the last quarter. Vanguard Group Inc. boosted its position in KB Home by 7.7% in the second quarter. Vanguard Group Inc. now owns 6,884,880 shares of the construction company’s stock worth $165,031,000 after purchasing an additional 492,594 shares during the last quarter. Capital World Investors boosted its position in KB Home by 30.1% in the second quarter. Capital World Investors now owns 2,117,000 shares of the construction company’s stock worth $50,744,000 after purchasing an additional 490,000 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in KB Home by 16.4% in the second quarter. Dimensional Fund Advisors LP now owns 2,803,374 shares of the construction company’s stock worth $67,196,000 after purchasing an additional 394,584 shares during the last quarter. Finally, Artemis Investment Management LLP purchased a new position in KB Home in the second quarter worth about $8,539,000. 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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