KB Home (NYSE:KBH) Stock Price Up 6.2% – Time to Buy?

KB Home (NYSE:KBH) shares were up 6.2% during mid-day trading on Thursday. The company traded as high as $45.58 and last traded at $45.6830. 415,247 shares changed hands during trading, a decline of 66% from the average session volume of 1,239,400 shares. The stock had previously closed at $43.01.

Wall Street Analyst Weigh In

Several brokerages have issued reports on KBH. Stonex Financia raised shares of KB Home to a “hold” rating in a report on Thursday, October 15th. Truist Financial dropped their price objective on shares of KB Home from $55.00 to $50.00 and set a “hold” rating for the company in a research note on Wednesday, September 23rd. Barclays dropped their price objective on shares of KB Home from $57.00 to $49.00 and set an “overweight” rating for the company in a research note on Wednesday, September 23rd. UBS Group restated a “buy” rating on shares of KB Home in a research report on Wednesday, September 23rd. Finally, The Goldman Sachs Group set a $56.00 target price on KB Home in a research note on Monday, October 12th. Four investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, KB Home currently has a consensus rating of “Hold” and a consensus price target of $52.23.

KB Home Trading Up 7.4%

The firm’s 50 day moving average is $49.16 and its two-hundred day moving average is $52.17. The stock has a market cap of $2.81 billion, a price-to-earnings ratio of 13.01, a P/E/G ratio of 2.25 and a beta of 1.34.

KB Home (NYSE:KBH) last released its quarterly earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.88 by $0.17. KB Home had a net margin of 4.39% and a return on equity of 6.56%. The company had revenue of $1.30 billion for the quarter, compared to analysts’ expectations of $1.30 billion. During the same period last year, the company earned $1.61 EPS. The firm’s revenue for the quarter was down 20.0% compared to the same quarter last year. As a group, equities analysts expect that KB Home will post 3.26 EPS for the current fiscal year.

KB Home Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Thursday, November 12th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, November 12th. KB Home’s payout ratio is currently 28.17%.

Insider Activity at KB Home

In related news, EVP Albert Z. Praw sold 22,015 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the sale, the executive vice president owned 104,062 shares in the company, valued at approximately $6,108,439.40. This trade represents a 17.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Arthur Collins sold 4,000 shares of KB Home stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $56.96, for a total transaction of $227,840.00. Following the completion of the sale, the director directly owned 9,157 shares of the company’s stock, valued at $521,582.72. The trade was a 30.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 4.69% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of KB Home during the 2nd quarter worth $618,489,000. Donald Smith & CO. Inc. acquired a new stake in shares of KB Home during the second quarter worth $108,652,000. Bamco Inc. NY acquired a new stake in shares of KB Home during the second quarter worth $37,500,000. Bank of New York Mellon Corp acquired a new stake in shares of KB Home during the second quarter worth $35,837,000. Finally, Bank of America Corp DE purchased a new stake in shares of KB Home in the second quarter valued at $35,377,000. 96.09% of the stock is currently owned by institutional investors and hedge funds.

About KB Home

KB Home (NYSE: KBH) is a homebuilder that develops and constructs residential communities across the United States. The company primarily builds single-family homes, along with certain attached homes and townhomes, serving first-time, move-up and active-adult buyers.

KB Home offers a range of home designs, floor plans and personalization options, allowing buyers to select features and finishes during the construction process. Its activities generally include land acquisition and development, home construction, sales and customer support, with homes built in both suburban and urban communities.

Founded in 1957, KB Home operates in markets across Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.