KB Home (KBH) Stock Rating Lowered by 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 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 reported an impressive 23% growth in revenues, double-digit increase in deliveries and 41% surge in net income, in the first nine months of 2017. The upside was primarily driven by an ongoing housing market recovery and favorable industry fundamentals. The company expects the uptrend to continue to 2018. KB Home shares have widely outperformed the homebuilding industry, year to date. Also, the trend in current-year earnings estimate revisions is satisfactory. Estimates moved upward over the past sixty days, reflecting analysts’ optimism. However, higher construction and labor costs, rising interest rate as well as competitive pricing pressures raise concern.”
Other equities research analysts also recently issued research reports about the company. BidaskClub downgraded KB Home from a “strong-buy” rating to a “buy” rating in a research report on Friday, August 11th. Mizuho upgraded KB Home from an “underperform” rating to a “neutral” rating and set a $21.00 price objective on the stock in a research report on Friday, September 29th. Wedbush downgraded KB Home from an “outperform” rating to a “neutral” rating in a research report on Thursday, October 19th. UBS assumed coverage on KB Home in a research report on Wednesday, October 25th. They issued a “sell” rating and a $24.00 price objective on the stock. Finally, Keefe, Bruyette & Woods set a $24.00 price objective on KB Home and gave the stock a “hold” rating in a research report on Saturday, August 19th. Five analysts have rated the stock with a sell rating, thirteen have issued a hold rating and one has issued a buy rating to the company’s stock. KB Home currently has a consensus rating of “Hold” and an average price target of $22.44.
Shares of KB Home (NYSE KBH) opened at $30.12 on Monday. KB Home has a 12-month low of $15.50 and a 12-month high of $31.47. The stock has a market capitalization of $2,633.93, a price-to-earnings ratio of 21.91, a P/E/G ratio of 0.72 and a beta of 1.69.
KB Home (NYSE:KBH) last issued its quarterly earnings data on Thursday, September 28th. The construction company reported $0.51 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.47 by $0.04. KB Home had a return on equity of 7.57% and a net margin of 3.22%. The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.12 billion. During the same quarter last year, the business posted $0.42 earnings per share. The firm’s revenue was up 24.8% compared to the same quarter last year. analysts expect that KB Home will post 1.77 earnings per share for the current fiscal year.
In other news, EVP Albert Z. Praw sold 150,000 shares of the firm’s stock in a transaction dated Monday, October 9th. The stock was sold at an average price of $25.85, for a total transaction of $3,877,500.00. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Brian J. Woram sold 49,529 shares of the firm’s stock in a transaction dated Thursday, October 12th. The shares were sold at an average price of $27.11, for a total value of $1,342,731.19. The disclosure for this sale can be found here. 8.60% of the stock is owned by corporate insiders.
Several large investors have recently made changes to their positions in KBH. Creative Planning grew its stake in shares of KB Home by 34.9% during the second quarter. Creative Planning now owns 4,289 shares of the construction company’s stock valued at $103,000 after buying an additional 1,110 shares during the last quarter. AllSquare Wealth Management LLC bought a new position in shares of KB Home during the third quarter valued at about $113,000. LS Investment Advisors LLC grew its stake in shares of KB Home by 18.0% during the second quarter. LS Investment Advisors LLC now owns 6,511 shares of the construction company’s stock valued at $156,000 after buying an additional 991 shares during the last quarter. Victory Capital Management Inc. grew its stake in shares of KB Home by 17.6% during the second quarter. Victory Capital Management Inc. now owns 8,288 shares of the construction company’s stock valued at $199,000 after buying an additional 1,241 shares during the last quarter. Finally, Yorktown Management & Research Co Inc bought a new position in shares of KB Home during the second quarter valued at about $201,000. 96.95% of the stock is currently owned by hedge funds and other institutional investors.
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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.
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