KB Home (NYSE:KBH) Shares Gap Up After Dividend Announcement

Shares of KB Home (NYSE:KBH) gapped up prior to trading on Thursday after the company announced a dividend. The stock had previously closed at $60.92, but opened at $62.82. KB Home shares last traded at $61.62, with a volume of 171,889 shares.

The newly announced dividend which will be paid on Thursday, May 23rd. Investors of record on Thursday, May 9th will be paid a dividend of $0.25 per share. The ex-dividend date is Wednesday, May 8th. This represents a $1.00 annualized dividend and a yield of 1.64%. This is a boost from KB Home’s previous quarterly dividend of $0.20. KB Home’s dividend payout ratio (DPR) is currently 10.88%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on KBH shares. Keefe, Bruyette & Woods raised their target price on KB Home from $67.00 to $77.00 and gave the stock a “market perform” rating in a research note on Thursday, March 28th. StockNews.com cut KB Home from a “buy” rating to a “hold” rating in a research note on Wednesday, April 10th. The Goldman Sachs Group raised their target price on KB Home from $61.00 to $70.00 and gave the stock a “neutral” rating in a research note on Friday, March 22nd. UBS Group raised their target price on KB Home from $82.00 to $87.00 and gave the stock a “buy” rating in a research note on Thursday, March 21st. Finally, Wedbush raised their target price on KB Home from $60.00 to $64.00 and gave the stock a “neutral” rating in a research note on Thursday, March 21st. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $66.11.

KB Home Price Performance

The stock has a fifty day moving average price of $65.93 and a two-hundred day moving average price of $58.52. The company has a market cap of $4.63 billion, a P/E ratio of 8.30, a price-to-earnings-growth ratio of 0.69 and a beta of 1.73.

KB Home (NYSE:KBH) last posted its earnings results on Wednesday, March 20th. The construction company reported $1.76 earnings per share for the quarter, beating analysts’ consensus estimates 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 analyst estimates of $1.46 billion. During the same quarter last year, the company earned $1.45 earnings per share. The company’s revenue for the quarter was up 6.5% on a year-over-year basis. Equities analysts predict that KB Home will post 8.01 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Jeff Kaminski sold 38,386 shares of KB Home stock in a transaction on Tuesday, April 9th. The stock was sold at an average price of $66.56, for a total transaction of $2,554,972.16. Following the sale, the chief financial officer now directly owns 34,473 shares in the company, valued at $2,294,522.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, CFO Jeff Kaminski sold 38,386 shares of KB Home stock in a transaction on Tuesday, April 9th. The stock was sold at an average price of $66.56, for a total transaction of $2,554,972.16. Following the sale, the chief financial officer now directly owns 34,473 shares in the company, valued at $2,294,522.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Jeffrey T. Mezger sold 165,307 shares of KB Home stock in a transaction on Thursday, January 25th. The stock was sold at an average price of $59.40, for a total value of $9,819,235.80. Following the sale, the chief executive officer now owns 1,491,298 shares in the company, valued at $88,583,101.20. The disclosure for this sale can be found here. Insiders have sold 412,021 shares of company stock worth $24,954,977 over the last 90 days. 4.44% of the stock is currently owned by corporate insiders.

Institutional Trading of KB Home

A number of hedge funds have recently bought and sold shares of the business. Harbour Investments Inc. bought a new stake in shares of KB Home in the second quarter valued at $26,000. Manchester Capital Management LLC raised its stake in shares of KB Home by 433.0% in the fourth quarter. Manchester Capital Management LLC now owns 485 shares of the construction company’s stock valued at $30,000 after buying an additional 394 shares during the period. Lazard Asset Management LLC bought a new stake in shares of KB Home in the first quarter valued at $40,000. Fifth Third Bancorp raised its stake in shares of KB Home by 40.9% in the third quarter. Fifth Third Bancorp now owns 930 shares of the construction company’s stock valued at $43,000 after buying an additional 270 shares during the period. Finally, GAMMA Investing LLC bought a new stake in shares of KB Home in the fourth quarter valued at $47,000. 96.09% of the stock is currently owned by institutional investors.

About KB Home

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.