KB Home (NYSE:KBH) Trading Down 2.6% Following Analyst Downgrade

KB Home (NYSE:KBHGet Rating) fell 2.6% during trading on Friday after Wells Fargo & Company lowered their price target on the stock from $40.00 to $31.00. Wells Fargo & Company currently has an overweight rating on the stock. KB Home traded as low as $25.33 and last traded at $25.37. 27,837 shares were traded during mid-day trading, a decline of 98% from the average session volume of 1,732,142 shares. The stock had previously closed at $26.04.

Other equities research analysts have also issued research reports about the stock. StockNews.com started coverage on shares of KB Home in a report on Thursday, March 31st. They set a “hold” rating on the stock. UBS Group dropped their price objective on shares of KB Home from $66.00 to $45.00 and set a “buy” rating on the stock in a research note on Thursday. Barclays dropped their price objective on shares of KB Home from $47.00 to $44.00 and set an “overweight” rating on the stock in a research note on Wednesday, June 8th. KeyCorp decreased their price objective on shares of KB Home from $38.00 to $30.00 and set an “underweight” rating for the company in a report on Tuesday, March 15th. Finally, Wedbush reiterated an “outperform” rating and set a $73.00 target price on shares of KB Home in a research note on Friday, March 18th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Buy” and an average price target of $45.23.

A number of large investors have recently modified their holdings of KBH. Point72 Hong Kong Ltd bought a new position in shares of KB Home in the 1st quarter valued at about $248,000. Quinn Opportunity Partners LLC bought a new position in KB Home during the 1st quarter worth approximately $1,417,000. Salem Investment Counselors Inc. boosted its stake in KB Home by 2.9% during the 1st quarter. Salem Investment Counselors Inc. now owns 270,539 shares of the construction company’s stock worth $8,760,000 after acquiring an additional 7,627 shares during the last quarter. Eqis Capital Management Inc. bought a new position in KB Home during the 1st quarter worth approximately $201,000. Finally, Guggenheim Capital LLC boosted its stake in KB Home by 42.3% during the 1st quarter. Guggenheim Capital LLC now owns 16,875 shares of the construction company’s stock worth $546,000 after acquiring an additional 5,013 shares during the last quarter. 89.78% of the stock is currently owned by hedge funds and other institutional investors.

The firm’s 50 day moving average is $32.77 and its two-hundred day moving average is $37.52. The firm has a market cap of $2.22 billion, a P/E ratio of 4.02, a price-to-earnings-growth ratio of 0.28 and a beta of 1.59.

KB Home (NYSE:KBHGet Rating) last released its quarterly earnings data on Wednesday, March 23rd. The construction company reported $1.47 earnings per share for the quarter, missing the consensus estimate of $1.52 by ($0.05). The firm had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.49 billion. KB Home had a return on equity of 20.40% and a net margin of 10.06%. The firm’s revenue was up 22.6% compared to the same quarter last year. During the same period in the previous year, the business earned $1.02 EPS. As a group, equities analysts anticipate that KB Home will post 10.13 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Thursday, May 19th. Investors of record on Thursday, May 5th were paid a $0.15 dividend. The ex-dividend date was Wednesday, May 4th. This represents a $0.60 annualized dividend and a dividend yield of 2.40%. KB Home’s dividend payout ratio is presently 9.26%.

About KB Home (NYSE:KBH)

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.

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