Royal Bank of Canada Issues Pessimistic Forecast for KB Home (NYSE:KBH) Stock Price

KB Home (NYSE:KBH) had its price target reduced by equities research analysts at Royal Bank of Canada from $67.00 to $63.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has a “sector perform” rating on the construction company’s stock. Royal Bank of Canada’s price objective would indicate a potential upside of 5.67% from the stock’s current price.

A number of other research analysts have also weighed in on KBH. Wedbush reissued a “neutral” rating and set a $75.00 price target on shares of KB Home in a research report on Tuesday. The Goldman Sachs Group decreased their price objective on shares of KB Home from $81.00 to $72.00 and set a “neutral” rating for the company in a research note on Friday, March 7th. Wells Fargo & Company cut their target price on KB Home from $63.00 to $57.00 and set an “underweight” rating on the stock in a research note on Tuesday. Keefe, Bruyette & Woods decreased their price target on KB Home from $85.00 to $76.00 and set a “market perform” rating for the company in a research report on Friday, January 17th. Finally, JPMorgan Chase & Co. cut their price objective on KB Home from $82.00 to $74.50 and set a “neutral” rating on the stock in a research report on Wednesday, January 15th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $72.13.

KB Home Stock Down 3.5 %

Shares of KB Home stock traded down $2.17 on Tuesday, hitting $59.62. The company had a trading volume of 2,385,748 shares, compared to its average volume of 1,220,036. KB Home has a 1 year low of $58.80 and a 1 year high of $89.70. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.83 and a current ratio of 5.51. The stock has a 50 day moving average of $64.17 and a 200-day moving average of $72.95. The stock has a market capitalization of $4.26 billion, a price-to-earnings ratio of 7.06, a P/E/G ratio of 0.90 and a beta of 1.89.

KB Home (NYSE:KBH) last released its quarterly earnings results on Monday, March 24th. The construction company reported $1.49 EPS for the quarter, missing analysts’ consensus estimates of $1.56 by ($0.07). KB Home had a net margin of 9.45% and a return on equity of 16.46%. The company had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.51 billion. During the same period in the previous year, the company posted $1.76 earnings per share. The company’s quarterly revenue was down 5.2% compared to the same quarter last year. As a group, sell-side analysts forecast that KB Home will post 8.42 earnings per share for the current year.

Insider Activity at KB Home

In other KB Home news, CFO Jeff Kaminski sold 27,500 shares of the stock in a transaction dated Tuesday, January 28th. The shares were sold at an average price of $68.77, for a total transaction of $1,891,175.00. Following the completion of the transaction, the chief financial officer now owns 34,473 shares in the company, valued at $2,370,708.21. This trade represents a 44.37 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 3.89% of the stock is currently owned by company insiders.

Institutional Trading of KB Home

A number of institutional investors have recently modified their holdings of KBH. FMR LLC grew its stake in KB Home by 47.9% in the 3rd quarter. FMR LLC now owns 5,411,255 shares of the construction company’s stock valued at $463,690,000 after buying an additional 1,752,498 shares in the last quarter. State Street Corp boosted its holdings in shares of KB Home by 1.3% in the third quarter. State Street Corp now owns 3,539,328 shares of the construction company’s stock worth $303,285,000 after acquiring an additional 45,311 shares during the period. Invesco Ltd. grew its position in shares of KB Home by 2.4% in the fourth quarter. Invesco Ltd. now owns 2,396,967 shares of the construction company’s stock valued at $157,529,000 after purchasing an additional 56,142 shares in the last quarter. Fisher Asset Management LLC raised its stake in shares of KB Home by 3.4% during the 4th quarter. Fisher Asset Management LLC now owns 2,281,315 shares of the construction company’s stock valued at $149,928,000 after purchasing an additional 75,143 shares during the period. Finally, Geode Capital Management LLC raised its stake in shares of KB Home by 0.9% during the 3rd quarter. Geode Capital Management LLC now owns 1,938,359 shares of the construction company’s stock valued at $166,125,000 after purchasing an additional 16,593 shares during the period. 96.09% of the stock is currently 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.