KB Home (NYSE:KBH) Shares Gap Down – Here’s Why

KB Home (NYSE:KBH)’s stock price 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 traded.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. lowered their price target on KB Home from $92.50 to $82.00 and set a “neutral” rating for the company in a report on Friday, December 13th. Barclays lowered KB Home from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $99.00 to $85.00 in a report on Wednesday, December 11th. Wells Fargo & Company cut 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. Bank of America upped their price objective on KB Home from $75.00 to $90.00 and gave the stock a “neutral” rating in a research note on Thursday, September 19th. Finally, The Goldman Sachs Group raised their target price on KB Home from $72.00 to $82.00 and gave the company a “neutral” rating in a research note on Tuesday, September 3rd. Three research analysts have rated the stock with a sell rating, seven have given a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $79.17.

KB Home Price Performance

The firm’s fifty day moving average is $78.62 and its two-hundred day moving average is $78.33. The firm has a market cap of $4.83 billion, a price-to-earnings ratio of 8.44, a P/E/G ratio of 0.59 and a beta of 1.81.

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

KB Home Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders 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 yield of 1.52%. The ex-dividend date was Thursday, November 14th. KB Home’s payout ratio is currently 12.82%.

Insider Transactions at KB Home

In other KB Home news, CFO Jeff Kaminski sold 27,500 shares of the company’s 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 owns 34,473 shares of the company’s stock, valued at approximately $2,737,156.20. This represents a 44.37 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 4.44% of the company’s stock.

Institutional Investors Weigh In On KB Home

Several hedge funds have recently modified their holdings of KBH. FMR LLC raised its holdings in KB Home by 47.9% during the 3rd quarter. FMR LLC now owns 5,411,255 shares of the construction company’s stock worth $463,690,000 after buying an additional 1,752,498 shares during the period. Holocene Advisors LP purchased a new stake in shares of KB Home in the 3rd quarter valued at approximately $89,899,000. LSV Asset Management boosted its stake in KB Home by 118.4% in the 2nd quarter. LSV Asset Management now owns 1,056,400 shares of the construction company’s stock worth $74,138,000 after purchasing an additional 572,800 shares during the period. WINTON GROUP Ltd grew its position in KB Home by 754.7% during the 2nd quarter. WINTON GROUP Ltd now owns 206,789 shares of the construction company’s stock worth $14,512,000 after purchasing an additional 182,595 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in KB Home by 22.1% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 906,236 shares of the construction company’s stock valued at $77,655,000 after purchasing an additional 164,010 shares during the period. 96.09% of the stock is owned by hedge funds and other 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.