Jeff Kaminski Sells 27,500 Shares of KB Home (NYSE:KBH) Stock

On January 28th, Jeff Kaminski, the Chief Financial Officer of KB Home (NYSE:KBH - Get Free Report), sold 27,500 shares of the company's stock. The sale was executed at an average price of $68.77, totaling $1,891,175.00. Following this transaction, Kaminski's direct ownership in KB Home stands at 34,473 shares, with a current estimated value of around $2,370,708.21. This sale represents a significant reduction of 44.37% in his stake in the company. The details of this transaction were made public in a filing with the Securities and Exchange Commission (SEC).

KB Home Stock Performance

On the trading day following the sale, shares of KB Home experienced a modest increase, rising by $1.68 to reach $68.80. The trading volume that day was 907,247 shares, notably lower than the average volume of 1,627,802 shares. The stock's recent performance metrics include a 50-day moving average of $71.05 and a two-hundred day moving average of $77.91. KB Home currently has a market capitalization of approximately $5.05 billion. The company has a price-to-earnings (P/E) ratio of 8.12, a price-to-earnings growth (P/E/G) ratio of 0.93, and a beta of 1.86. Over the past year, the stock has fluctuated, reaching a low of $58.15 and a high of $89.70.

Financial Performance and Earnings

Recently, KB Home released its earnings report on January 13th, where it announced earnings of $2.52 per share for the quarter. This figure surpassed analyst expectations of $2.44 by $0.08. The company reported a revenue of $2 billion for the quarter, exceeding the consensus estimate of $1.99 billion. KB Home achieved a net margin of 9.45% and a return on equity of 16.46%. Compared year-over-year, the company’s revenue displayed a 19.5% increase, compared to $1.85 per share in the same quarter last year. Analysts forecast KB Home to achieve an earnings per share (EPS) of 8.5 for the current fiscal year.

Dividend Announcement

In addition to the financial performance, KB Home recently declared a quarterly dividend payment. Investors of record by February 6th will receive a dividend of $0.25, which is set to be paid on February 20th. This translates to an annualized dividend of $1.00, equating to a yield of 1.45%. The company maintains a payout ratio of 11.81%, indicating a strong balance between returning profits to shareholders and reinvesting in the business.

Institutional Trading Activity

Recent trading activity indicated increased institutional interest in KB Home, with several investors adjusting their positions. FMR LLC raised its ownership by 47.9%, securing 5,411,255 shares worth approximately $463.69 million after acquiring an additional 1,752,498 shares. Holocene Advisors LP entered a new position valued at nearly $89.90 million, while Hennessy Advisors Inc. initiated a new stake worth about $44.12 million in the firm. Similarly, Charles Schwab Investment Management Inc. grew its stake by 22.1% in the last quarter. Institutional investors collectively hold around 96.09% of KB Home’s stock, suggesting substantial backing from large investment firms.

Analyst Ratings and Forecasts

KB Home has been in focus for analysts recently, with several rating changes. Raymond James reaffirmed an “outperform” rating, assigning a new price target of $80.00, lowered from $93.00. Bank of America reduced their price target from $76.00 to $71.00 while maintaining a “neutral” rating. Wells Fargo lowered its target from $70.00 to $65.00 and rated the stock as “underweight.” Barclays set a new price goal of $60.00 and classified the stock as equal weight. Additionally, Keefe, Bruyette & Woods also cut their price target from $85.00 to $76.00, labeling the stock as a market performer. Overall, according to MarketBeat, KB Home holds an average rating of “Hold” with a target price of $76.21.

About KB Home

KB Home operates as a homebuilding enterprise in the United States, functioning through four regional segments: West Coast, Southwest, Central, and Southeast. The company is focused on constructing and selling a variety of residential properties, including single-family homes, townhomes, and condominiums. Primarily, they cater to market segments such as first-time homebuyers, move-up buyers, and active adult customers. The company's consistent performance and strategic operations enable it to be a significant player in the homebuilding industry.

KBHome, Stock, CFO