Brokerages Set KB Home (NYSE:KBH) Price Target at $75.21

Shares of KB Home (NYSE:KBH – Get Free Report) have received a consensus rating of "Hold" from thirteen research firms currently covering the company, as reported by MarketBeat Ratings. Of these analysts, two have assigned a sell rating, seven have given a hold rating, three have issued a buy rating, and one has designated the stock as a strong buy. The average price target for KB Home among these analysts over the next year is set at $75.21.

Various research firms have recently made adjustments regarding KB Home’s stock. On March 10th, Wells Fargo & Company reduced their price target from $65.00 to $63.00, providing an "underweight" rating for the stock. Similarly, on January 21st, Raymond James maintained an "outperform" rating but lowered their target price from $93.00 to $80.00. Barclays also adjusted its target downward from $85.00 to $60.00 while maintaining an "equal weight" rating. Additionally, Keefe, Bruyette & Woods revised their target price from $85.00 to $76.00, giving the stock a "market perform" rating. UBS Group has set a "buy" rating but reduced their target from $105.00 to $100.00.

Current Stock Performance

As of Tuesday, KB Home's stock opened at $61.21. The company has a market capitalization of $4.37 billion and maintains a PE ratio of 7.23. The stock shows a P/E/G ratio of 0.90 and has a beta of 1.89. KB Home's shares have fluctuated between a 52-week low of $59.00 and a high of $89.70. Additionally, the company's 50-day and 200-day simple moving averages are currently $64.29 and $73.34, respectively. KB Home's debt-to-equity ratio stands at 0.42, while its quick ratio is 0.83, and the current ratio is 5.51.

Recent Earnings

KB Home recently reported its quarterly earnings on January 13th, revealing earnings of $2.52 per share, which surpassed the consensus estimate of $2.44 by $0.08. The total revenue for the quarter was $2 billion, higher than the anticipated $1.99 billion. The company achieved a return on equity of 16.46% and noted a net margin of 9.45%. This marked a year-over-year revenue increase of 19.5%. In the previous year’s same quarter, KB Home reported earnings of $1.85 per share. Analysts predict that KB Home will report an EPS of 8.42 for the ongoing fiscal year.

Dividend Announcement

KB Home has recently declared a quarterly dividend, which was paid out on February 20th. Shareholders on record by February 6th received a dividend of $0.25. The ex-dividend date was also set on February 6th, reflecting an annualized dividend of $1.00 and a yield of 1.63%. Currently, KB Home's dividend payout ratio stands at 11.81%.

Insider Trading Activity

In related news, CFO Jeff Kaminski sold 27,500 shares of the company on January 28th, at an average price of $68.77, amounting to a total value of $1,891,175. Following this transaction, Kaminski holds 34,473 shares in KB Home, valued at approximately $2,370,708. This sale represents a 44.37% decrease in his holdings. The transaction details were disclosed through a filing with the SEC, where 4.44% of the company's stock is owned by insiders.

Institutional Trading Insights

Numerous institutional investors have adjusted their stakes in KB Home recently. For instance, Jones Financial Companies Lllp increased its stake by 65.6% in the fourth quarter, owning 540 shares valued at $36,000 after acquiring an additional 214 shares. Principal Securities Inc. also raised its holdings by 43.6%, now owning 590 shares worth $39,000 after buying 179 additional shares. Wilmington Savings Fund Society FSB and Banque Cantonale Vaudoise have both acquired new stakes in KB Home valued at $59,000 and $61,000, respectively. Versant Capital Management Inc. reported a 275.7% increase in its holdings, now owning 759 shares worth $50,000. Currently, institutional investors hold 96.09% of KB Home's stock.

Company Overview

KB Home operates as a homebuilding company in the United States, functioning through four segments: West Coast, Southwest, Central, and Southeast. The company is involved in constructing and selling a variety of homes, including both attached and detached single-family homes, townhomes, and condominiums, catering primarily to first-time buyers, move-up buyers, and active adult homebuyers.

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