Buckingham Research Downgrades KB Home (KBH) to Underperform

KB Home (NYSE:KBH) was downgraded by analysts at Buckingham Research from a “neutral” rating to an “underperform” rating in a note issued to investors on Friday, Marketbeat reports. They presently have a $34.00 price objective on the construction company’s stock, up from their previous price objective of $28.00. Buckingham Research’s price objective suggests a potential downside of 8.06% from the company’s current price. The analysts noted that the move was a valuation call.

Several other research firms also recently issued reports on KBH. Credit Suisse Group reaffirmed a “neutral” rating and set a $31.00 price objective (up from $25.00) on shares of KB Home in a report on Thursday. Zacks Investment Research raised shares of KB Home from a “hold” rating to a “strong-buy” rating and set a $39.00 price objective on the stock in a report on Tuesday, January 9th. Wedbush increased their target price on shares of KB Home from $28.00 to $30.00 and gave the company a “neutral” rating in a research report on Friday, December 29th. ValuEngine upgraded shares of KB Home from a “buy” rating to a “strong-buy” rating in a research report on Sunday, December 31st. Finally, Citigroup cut shares of KB Home from a “neutral” rating to a “sell” rating and set a $27.00 target price for the company. in a research report on Tuesday, January 2nd. Seven investment analysts have rated the stock with a sell rating, ten have given a hold rating, one has given a buy rating and two have assigned a strong buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $26.81.

KB Home (NYSE:KBH) traded down $1.60 on Friday, reaching $36.98. 4,995,093 shares of the company’s stock traded hands, compared to its average volume of 4,033,578. The company has a current ratio of 5.36, a quick ratio of 1.22 and a debt-to-equity ratio of 1.21. The stock has a market capitalization of $3,200.00, a P/E ratio of 26.60, a price-to-earnings-growth ratio of 1.03 and a beta of 1.69. KB Home has a fifty-two week low of $15.88 and a fifty-two week high of $38.80.

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

Hedge funds and other institutional investors have recently modified their holdings of the company. Atlantic Trust Group LLC acquired a new stake in KB Home during the third quarter worth about $1,250,000. GSA Capital Partners LLP acquired a new stake in KB Home during the third quarter worth about $247,000. Piedmont Investment Advisors LLC acquired a new stake in KB Home during the third quarter worth about $1,041,000. California Public Employees Retirement System increased its position in KB Home by 12.1% during the third quarter. California Public Employees Retirement System now owns 280,808 shares of the construction company’s stock worth $6,773,000 after purchasing an additional 30,408 shares during the last quarter. Finally, Janney Montgomery Scott LLC acquired a new stake in KB Home during the third quarter worth about $706,000. Institutional investors and hedge funds own 96.73% of the company’s stock.

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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.

Analyst Recommendations for KB Home (NYSE:KBH)

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