KB Home (NYSE:KBH) to Issue Dividend Increase – $0.25 Per Share

KB Home (NYSE:KBH) announced a quarterly dividend on Friday, April 19th, Wall Street Journal reports. Stockholders of record on Thursday, May 9th will be paid a dividend of 0.25 per share by the construction company on Thursday, May 23rd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.64%. The ex-dividend date of this dividend is Wednesday, May 8th. This is a boost from KB Home’s previous quarterly dividend of $0.20.

KB Home has increased its dividend payment 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 dividend payout ratio of 9.6% meaning its dividend is sufficiently covered by earnings. 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 Performance

Shares of KBH stock traded up $0.62 during trading hours on Friday, reaching $61.03. The company had a trading volume of 1,712,659 shares, compared to its average volume of 1,170,145. The business has a fifty day moving average price of $65.92 and a 200-day moving average price of $58.42. KB Home has a one year low of $40.97 and a one year high of $72.00. The firm has a market cap of $4.63 billion, a PE ratio of 8.30, a price-to-earnings-growth ratio of 0.69 and a beta of 1.73.

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

Analysts Set New Price Targets

Several equities analysts have weighed in on the stock. Keefe, Bruyette & Woods lifted their price target on shares of KB Home from $67.00 to $77.00 and gave the company a “market perform” rating in a report on Thursday, March 28th. UBS Group boosted their target price on shares of KB Home from $82.00 to $87.00 and gave the stock a “buy” rating in a report on Thursday, March 21st. Raymond James boosted their target price on shares of KB Home from $61.00 to $70.00 and gave the stock an “outperform” rating in a report on Thursday, January 18th. Barclays boosted their target price on shares of KB Home from $75.00 to $77.00 and gave the stock an “overweight” rating in a report on Friday, March 22nd. Finally, JPMorgan Chase & Co. boosted their target price on shares of KB Home from $68.50 to $70.50 and gave the stock a “neutral” rating in a report on Wednesday, March 27th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $66.11.

Insider Buying and Selling at KB Home

In other KB Home news, EVP Brian J. Woram sold 83,272 shares of the stock in a transaction dated Tuesday, January 30th. The shares were sold at an average price of $60.53, for a total transaction of $5,040,454.16. Following the transaction, the executive vice president now directly owns 156,119 shares in the company, valued at approximately $9,449,883.07. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In related news, EVP Brian J. Woram sold 83,272 shares of the stock in a transaction that occurred on Tuesday, January 30th. The shares were sold at an average price of $60.53, for a total value of $5,040,454.16. Following the completion of the transaction, the executive vice president now directly owns 156,119 shares of the company’s stock, valued at approximately $9,449,883.07. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Brian J. Woram sold 10,000 shares of the stock in a transaction that occurred on Friday, January 26th. The stock was sold at an average price of $59.55, for a total transaction of $595,500.00. Following the completion of the transaction, the executive vice president now owns 156,119 shares in the company, valued at approximately $9,296,886.45. 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 quarter. Insiders own 4.44% of the company’s stock.

Institutional Investors Weigh In On KB Home

A number of institutional investors have recently added to or reduced their stakes in the stock. Fuller & Thaler Asset Management Inc. grew its position in KB Home by 125.5% in the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 2,077,861 shares of the construction company’s stock valued at $67,281,000 after acquiring an additional 1,156,233 shares in the last quarter. Norges Bank acquired a new position in KB Home in the fourth quarter valued at approximately $29,141,000. AQR Capital Management LLC increased its stake in KB Home by 90.9% in the fourth quarter. AQR Capital Management LLC now owns 1,436,592 shares of the construction company’s stock valued at $45,655,000 after purchasing an additional 684,199 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in KB Home by 1,871.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 615,588 shares of the construction company’s stock valued at $24,734,000 after purchasing an additional 584,363 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in KB Home by 6,353.6% in the second quarter. Goldman Sachs Group Inc. now owns 487,092 shares of the construction company’s stock valued at $25,188,000 after purchasing an additional 494,881 shares during the last quarter. Institutional investors and hedge funds own 96.09% of the company’s stock.

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.