KB Home (NYSE:KBH) Shares Gap Down – Time to Sell?

KB Home (NYSE:KBH) gapped down prior to trading on Thursday . The stock had previously closed at $67.26, but opened at $65.80. KB Home shares last traded at $66.22, with a volume of 166,320 shares trading hands.

Wall Street Analyst Weigh In

A number of analysts recently commented on KBH shares. Barclays downgraded shares of KB Home from an “overweight” rating to an “equal weight” rating and decreased their price objective for the stock from $99.00 to $85.00 in a report on Wednesday, December 11th. Wells Fargo & Company lowered their price target on KB Home from $83.00 to $74.00 and set an “underweight” rating on the stock in a report on Tuesday. Royal Bank of Canada cut KB Home from a “sector perform” rating to an “underperform” rating and set a $70.00 price objective for the company. in a report on Thursday, September 5th. The Goldman Sachs Group upped their target price on KB Home from $72.00 to $82.00 and gave the company a “neutral” rating in a report on Tuesday, September 3rd. Finally, Bank of America lifted their price target on KB Home from $75.00 to $90.00 and gave the stock a “neutral” rating in a research note on Thursday, September 19th. Three equities research analysts have rated the stock with a sell rating, seven have given a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $79.17.

KB Home Stock Up 0.1 %

The firm’s 50 day moving average is $78.62 and its 200-day moving average is $78.33. The firm has a market cap of $4.83 billion, a PE ratio of 8.44, a P/E/G ratio of 0.59 and a beta of 1.81.

KB Home (NYSE:KBH) last posted its quarterly earnings data on Tuesday, September 24th. The construction company reported $2.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.06 by ($0.02). The business had revenue of $1.75 billion for the quarter, compared to analyst estimates of $1.73 billion. KB Home had a return on equity of 15.69% and a net margin of 9.31%. KB Home’s revenue for the quarter was up 10.3% compared to the same quarter last year. During the same quarter last year, the business earned $1.80 EPS. On average, analysts forecast that KB Home will post 8.42 earnings per share for the current year.

KB Home Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, November 27th. Stockholders of record on Thursday, November 14th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.52%. The ex-dividend date was Thursday, November 14th. KB Home’s dividend payout ratio is currently 12.82%.

Insider Transactions at KB Home

In related news, CFO Jeff Kaminski sold 27,500 shares of the stock in a transaction on Monday, October 14th. The stock was sold at an average price of $79.40, for a total value of $2,183,500.00. Following the transaction, the chief financial officer now directly owns 34,473 shares of the company’s stock, valued at approximately $2,737,156.20. This trade represents a 44.37 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 4.44% of the company’s stock.

Institutional Investors Weigh In On KB Home

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Financial Management Professionals Inc. purchased a new position in KB Home in the third quarter valued at approximately $32,000. Riggs Asset Managment Co. Inc. purchased a new position in KB Home in the third quarter valued at about $43,000. Wilmington Savings Fund Society FSB acquired a new stake in shares of KB Home in the third quarter valued at about $59,000. Banque Cantonale Vaudoise purchased a new stake in shares of KB Home during the third quarter valued at approximately $61,000. Finally, Tortoise Investment Management LLC boosted its position in KB Home by 625.3% in the 2nd quarter. Tortoise Investment Management LLC now owns 1,117 shares of the construction company’s stock valued at $78,000 after buying an additional 963 shares during the last quarter. 96.09% of the stock is currently owned by institutional investors and hedge funds.

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.