KB Home (NYSE:KBH) Shares Gap Down Following Weak Earnings

KB Home (NYSE:KBH) shares gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $61.79, but opened at $56.59. KB Home shares last traded at $57.88, with a volume of 1,193,732 shares.

The construction company reported $1.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.56 by ($0.07). The company had revenue of $1.39 billion for the quarter, compared to analysts’ expectations of $1.51 billion. KB Home had a net margin of 9.45% and a return on equity of 16.46%. The firm’s quarterly revenue was down 5.2% on a year-over-year basis. During the same period in the previous year, the firm earned $1.76 EPS.

KB Home Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, February 20th. Stockholders of record on Thursday, February 6th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, February 6th. This represents a $1.00 annualized dividend and a dividend yield of 1.69%. KB Home’s payout ratio is 11.81%.

Analyst Upgrades and Downgrades

KBH has been the topic of several analyst reports. Seaport Res Ptn upgraded shares of KB Home from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 6th. Raymond James restated an “outperform” rating and issued a $80.00 target price (down previously from $93.00) on shares of KB Home in a research note on Tuesday, January 21st. Bank of America decreased their price target on KB Home from $67.00 to $62.00 and set a “neutral” rating for the company in a research report on Tuesday. StockNews.com cut KB Home from a “hold” rating to a “sell” rating in a research report on Wednesday. Finally, UBS Group decreased their target price on KB Home from $97.00 to $86.00 and set a “buy” rating for the company in a research report on Tuesday. Three analysts have rated the stock with a sell rating, seven have given a hold rating, three have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $71.21.

Insider Buying and Selling

In other KB Home news, CFO Jeff Kaminski sold 27,500 shares of the firm’s stock in a transaction dated Tuesday, January 28th. The stock was sold at an average price of $68.77, for a total value 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 3.89% of the stock is currently owned by insiders.

Institutional Investors Weigh In On KB Home

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Jones Financial Companies Lllp boosted its position in shares of KB Home by 65.6% in the fourth quarter. Jones Financial Companies Lllp now owns 540 shares of the construction company’s stock valued at $36,000 after acquiring an additional 214 shares during the period. Principal Securities Inc. lifted its stake in KB Home by 43.6% in the 4th quarter. Principal Securities Inc. now owns 590 shares of the construction company’s stock worth $39,000 after purchasing an additional 179 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new position in KB Home in the 3rd quarter valued at $59,000. Versant Capital Management Inc grew its position in shares of KB Home by 275.7% during the 4th quarter. Versant Capital Management Inc now owns 759 shares of the construction company’s stock valued at $50,000 after purchasing an additional 557 shares in the last quarter. Finally, Amundi increased its holdings in shares of KB Home by 29.6% in the fourth quarter. Amundi now owns 880 shares of the construction company’s stock worth $58,000 after purchasing an additional 201 shares during the period. 96.09% of the stock is currently owned by institutional investors.

KB Home Stock Up 1.0 %

The company has a market cap of $4.23 billion, a PE ratio of 6.98, a P/E/G ratio of 0.90 and a beta of 1.89. The stock has a 50-day moving average of $63.81 and a 200-day moving average of $72.71. The company has a quick ratio of 0.83, a current ratio of 5.51 and a debt-to-equity ratio of 0.42.

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.