Wells Fargo & Company Has Lowered Expectations for KB Home (NYSE:KBH) Stock Price

KB Home (NYSE:KBH) had its price objective lowered by Wells Fargo & Company from $55.00 to $53.00 in a research report report published on Tuesday,Benzinga reports. The brokerage currently has an underweight rating on the construction company’s stock.

A number of other research firms have also commented on KBH. Keefe, Bruyette & Woods reduced their price target on shares of KB Home from $76.00 to $65.00 and set a “market perform” rating on the stock in a research report on Wednesday, March 26th. UBS Group cut their target price on shares of KB Home from $97.00 to $86.00 and set a “buy” rating for the company in a research note on Tuesday, March 25th. Wedbush restated a “neutral” rating and set a $75.00 price target on shares of KB Home in a research report on Tuesday, March 25th. Seaport Res Ptn raised KB Home from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 6th. Finally, Wall Street Zen lowered KB Home from a “hold” rating to a “sell” rating in a research note on Wednesday, March 26th. Two analysts have rated the stock with a sell rating, seven have given a hold rating, three have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $71.05.

KB Home Stock Performance

Shares of NYSE:KBH opened at $52.89 on Tuesday. The company has a debt-to-equity ratio of 0.42, a current ratio of 5.51 and a quick ratio of 0.83. The business’s fifty day moving average price is $53.31 and its two-hundred day moving average price is $62.48. KB Home has a fifty-two week low of $48.90 and a fifty-two week high of $89.70. The stock has a market capitalization of $3.79 billion, a price-to-earnings ratio of 6.24, a price-to-earnings-growth ratio of 0.90 and a beta of 1.35.

KB Home (NYSE:KBH) last issued its earnings results on Monday, March 24th. The construction company reported $1.49 EPS for the quarter, missing the consensus estimate of $1.56 by ($0.07). KB Home had a net margin of 9.45% and a return on equity of 16.46%. The firm had revenue of $1.39 billion during the quarter, compared to analyst estimates of $1.51 billion. During the same quarter in the prior year, the firm posted $1.76 EPS. The firm’s revenue for the quarter was down 5.2% on a year-over-year basis. As a group, analysts predict that KB Home will post 8.42 EPS for the current fiscal year.

KB Home Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 22nd. Shareholders of record on Thursday, May 8th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, May 8th. This represents a $1.00 dividend on an annualized basis and a yield of 1.89%. KB Home’s payout ratio is 12.20%.

Insider Activity

In other news, Director Arthur Reginald Collins sold 5,000 shares of KB Home stock in a transaction that occurred on Friday, May 16th. The shares were sold at an average price of $54.38, for a total transaction of $271,900.00. Following the completion of the sale, the director now owns 10,262 shares in the company, valued at $558,047.56. The trade was a 32.76% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 3.89% of the company’s stock.

Hedge Funds Weigh In On KB Home

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Jones Financial Companies Lllp raised its position in shares of KB Home by 65.6% during the 4th quarter. Jones Financial Companies Lllp now owns 540 shares of the construction company’s stock valued at $36,000 after acquiring an additional 214 shares during the last quarter. Principal Securities Inc. grew its stake in shares of KB Home by 43.6% during the fourth quarter. Principal Securities Inc. now owns 590 shares of the construction company’s stock worth $39,000 after purchasing an additional 179 shares during the period. Harbor Capital Advisors Inc. increased its holdings in KB Home by 73.7% in the first quarter. Harbor Capital Advisors Inc. now owns 608 shares of the construction company’s stock valued at $35,000 after purchasing an additional 258 shares during the last quarter. Sachetta LLC lifted its stake in KB Home by 3,142.9% in the first quarter. Sachetta LLC now owns 681 shares of the construction company’s stock valued at $40,000 after buying an additional 660 shares during the period. Finally, Banque Cantonale Vaudoise acquired a new position in KB Home in the first quarter valued at about $40,000. 96.09% of the stock is owned by institutional investors.

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.