KB Home (KBH) to Issue Quarterly Dividend of $0.25 on May 23rd

KB Home (NYSE:KBH) announced a quarterly dividend on Thursday, April 18th, Wall Street Journal reports. Investors of record on Thursday, May 9th will be given a dividend of 0.25 per share by the construction company on Thursday, May 23rd. This represents a $1.00 annualized dividend and a yield of 1.64%. The ex-dividend date of this dividend is Wednesday, May 8th. This is a positive change from KB Home’s previous quarterly dividend of $0.20.

KB Home has increased its dividend by an average of 18.6% per year over the last three years and has increased its dividend annually for the last 1 consecutive years. KB Home has a payout ratio of 9.6% meaning its dividend is sufficiently covered by earnings. Equities analysts expect KB Home to earn $8.72 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 9.2%.

KB Home Stock Up 1.0 %

Shares of KB Home stock opened at $61.03 on Friday. The stock’s fifty day moving average is $65.93 and its two-hundred day moving average is $58.52. The company has a market capitalization of $4.63 billion, a PE ratio of 8.30, a price-to-earnings-growth ratio of 0.68 and a beta of 1.73. KB Home has a 52 week low of $40.97 and a 52 week high of $72.00.

KB Home (NYSE:KBH) last announced its quarterly earnings data on Wednesday, March 20th. The construction company reported $1.76 EPS for the quarter, beating the consensus estimate of $1.57 by $0.19. KB Home had a return on equity of 15.78% and a net margin of 9.29%. The company had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.46 billion. During the same quarter in the prior year, the company posted $1.45 EPS. KB Home’s quarterly revenue was up 6.5% on a year-over-year basis. As a group, research analysts anticipate that KB Home will post 8.01 earnings per share for the current year.

Insider Buying and Selling at KB Home

In other KB Home news, CAO William R. Hollinger sold 45,471 shares of the stock in a transaction dated Tuesday, January 30th. The stock was sold at an average price of $60.47, for a total value of $2,749,631.37. Following the completion of the sale, the chief accounting officer now directly owns 109,981 shares in the company, valued at $6,650,551.07. The transaction was disclosed in a document filed with the SEC, which is available at this link. In other news, CAO William R. Hollinger sold 45,471 shares of the firm’s stock in a transaction dated Tuesday, January 30th. The stock was sold at an average price of $60.47, for a total value of $2,749,631.37. Following the completion of the transaction, the chief accounting officer now directly owns 109,981 shares in the company, valued at $6,650,551.07. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Jeff Kaminski sold 38,386 shares of the firm’s stock in a transaction dated Tuesday, April 9th. The stock was sold at an average price of $66.56, for a total value of $2,554,972.16. Following the completion of the transaction, the chief financial officer now owns 34,473 shares of the company’s stock, valued at $2,294,522.88. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 412,021 shares of company stock worth $24,954,977. 4.44% of the stock is owned by insiders.

Institutional Trading of KB Home

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in KB Home by 1.4% during the first quarter. Vanguard Group Inc. now owns 7,970,899 shares of the construction company’s stock worth $258,098,000 after acquiring an additional 108,191 shares during the period. Macquarie Group Ltd. grew its holdings in KB Home by 2.2% in the second quarter. Macquarie Group Ltd. now owns 3,980,992 shares of the construction company’s stock valued at $113,299,000 after purchasing an additional 85,582 shares during the period. State Street Corp boosted its stake in shares of KB Home by 0.3% in the first quarter. State Street Corp now owns 2,793,847 shares of the construction company’s stock worth $112,257,000 after acquiring an additional 7,935 shares during the last quarter. Fuller & Thaler Asset Management Inc. boosted its stake in shares of KB Home by 125.5% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 2,077,861 shares of the construction company’s stock worth $67,281,000 after acquiring an additional 1,156,233 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in shares of KB Home by 16.1% in the first quarter. AQR Capital Management LLC now owns 1,668,451 shares of the construction company’s stock worth $66,504,000 after acquiring an additional 231,859 shares during the last quarter. 96.09% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

KBH has been the topic of a number of recent research reports. Barclays increased their price target on KB Home from $75.00 to $77.00 and gave the stock an “overweight” rating in a research report on Friday, March 22nd. JPMorgan Chase & Co. increased their price target on KB Home from $68.50 to $70.50 and gave the stock a “neutral” rating in a research report on Wednesday, March 27th. The Goldman Sachs Group increased their price target on KB Home from $61.00 to $70.00 and gave the stock a “neutral” rating in a research report on Friday, March 22nd. Royal Bank of Canada increased their price target on KB Home from $63.00 to $69.00 and gave the stock a “sector perform” rating in a research report on Thursday, March 21st. Finally, Evercore ISI dropped their price target on KB Home from $82.00 to $78.00 and set an “outperform” rating on the stock in a research report on Thursday, March 21st. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, KB Home currently has a consensus rating of “Hold” and an average price target of $66.11.

KB Home Company Profile

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