KB Home (NYSE:KBH) Reaches New 1-Year Low – Here’s Why

KB Home (NYSE:KBH)’s share price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $47.82 and last traded at $47.8640, with a volume of 705754 shares traded. The stock had previously closed at $49.52.

Analyst Upgrades and Downgrades

KBH has been the topic of several research analyst reports. Citizens Jmp initiated coverage on KB Home in a research report on Tuesday, March 24th. They issued an “outperform” rating and a $77.00 price objective on the stock. Weiss Ratings lowered KB Home from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, May 7th. Seaport Research Partners restated a “sell” rating and issued a $43.00 target price (down from $65.00) on shares of KB Home in a research note on Tuesday, April 7th. Wells Fargo & Company lowered their target price on KB Home from $55.00 to $50.00 and set an “underweight” rating on the stock in a research note on Wednesday, March 25th. Finally, UBS Group decreased their price objective on KB Home from $71.00 to $63.00 and set a “buy” rating on the stock in a research note on Wednesday, March 25th. Three equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $59.17.

KB Home Stock Performance

The business has a 50 day simple moving average of $52.82 and a two-hundred day simple moving average of $58.31. The firm has a market capitalization of $2.92 billion, a P/E ratio of 11.85, a price-to-earnings-growth ratio of 8.29 and a beta of 1.42.

KB Home (NYSE:KBH) last posted its quarterly earnings data on Tuesday, March 24th. The construction company reported $0.52 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.52. KB Home had a return on equity of 9.63% and a net margin of 5.96%.The firm had revenue of $1.08 billion during the quarter, compared to analysts’ expectations of $1.10 billion. During the same period in the prior year, the business earned $1.49 EPS. The company’s revenue for the quarter was down 22.6% compared to the same quarter last year. On average, equities analysts anticipate that KB Home will post 3.1 earnings per share for the current fiscal year.

KB Home Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 21st. Investors of record on Thursday, May 7th will be issued a dividend of $0.25 per share. The ex-dividend date is Thursday, May 7th. This represents a $1.00 annualized dividend and a yield of 2.1%. KB Home’s dividend payout ratio is currently 25.38%.

Institutional Investors Weigh In On KB Home

Several institutional investors have recently bought and sold shares of the stock. Freestone Grove Partners LP bought a new position in KB Home during the 3rd quarter valued at approximately $111,050,000. Norges Bank bought a new position in KB Home during the 4th quarter valued at approximately $48,418,000. Donald Smith & CO. Inc. raised its position in shares of KB Home by 387.8% in the 4th quarter. Donald Smith & CO. Inc. now owns 725,394 shares of the construction company’s stock worth $40,919,000 after acquiring an additional 576,694 shares in the last quarter. Goldman Sachs Group Inc. raised its position in shares of KB Home by 102.4% in the 4th quarter. Goldman Sachs Group Inc. now owns 932,178 shares of the construction company’s stock worth $52,584,000 after acquiring an additional 471,598 shares in the last quarter. Finally, Engineers Gate Manager LP raised its position in shares of KB Home by 519.2% in the 4th quarter. Engineers Gate Manager LP now owns 353,739 shares of the construction company’s stock worth $19,954,000 after acquiring an additional 296,615 shares in the last quarter. 96.09% of the stock is currently owned by hedge funds and other institutional investors.

KB Home Company Profile

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation’s largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.