KB Home (NYSE:KBH) Expected to Earn Q3 2023 Earnings of $1.14 Per Share

KB Home (NYSE:KBH – Get Rating) – Analysts at Zacks Research increased their Q3 2023 EPS estimates for shares of KB Home in a research report issued on Tuesday, May 23rd. Zacks Research analyst S. Mukherjee now forecasts that the construction company will post earnings per share of $1.14 for the quarter, up from their previous forecast of $1.13. The consensus estimate for KB Home’s current full-year earnings is $5.27 per share. Zacks Research also issued estimates for KB Home’s Q4 2023 earnings at $1.18 EPS, FY2023 earnings at $4.96 EPS, Q1 2024 earnings at $1.31 EPS, Q2 2024 earnings at $1.43 EPS, Q3 2024 earnings at $1.43 EPS, FY2024 earnings at $5.63 EPS and FY2025 earnings at $6.35 EPS.

Several other research analysts also recently commented on the stock. Barclays raised their price target on shares of KB Home from $51.00 to $56.00 in a research note on Wednesday. JPMorgan Chase & Co. upgraded shares of KB Home from an “underweight” rating to a “neutral” rating and increased their target price for the stock from $32.50 to $42.50 in a report on Friday, March 24th. Wedbush reiterated an “outperform” rating and set a $42.00 target price on shares of KB Home in a report on Monday, March 20th. Royal Bank of Canada increased their target price on shares of KB Home from $34.00 to $37.00 and gave the stock a “sector perform” rating in a report on Thursday, March 23rd. Finally, UBS Group increased their target price on shares of KB Home from $45.00 to $48.00 and gave the stock a “buy” rating in a report on Thursday, March 23rd. Eight investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $41.71.

KB Home Price Performance

KBH stock opened at $44.31 on Thursday. The company has a market capitalization of $3.66 billion, a PE ratio of 4.87, a P/E/G ratio of 1.14 and a beta of 1.61. KB Home has a 12 month low of $24.78 and a 12 month high of $46.91. The firm’s 50-day moving average is $41.67 and its 200 day moving average is $36.57.

KB Home (NYSE:KBH – Get Rating) last posted its quarterly earnings results on Wednesday, March 22nd. The construction company reported $1.45 EPS for the quarter, topping the consensus estimate of $1.05 by $0.40. The company had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.30 billion. KB Home had a net margin of 11.73% and a return on equity of 22.86%. The firm’s revenue was down 1.4% compared to the same quarter last year. During the same quarter last year, the firm posted $1.47 EPS.

KB Home declared that its board has initiated a share repurchase program on Wednesday, March 22nd that allows the company to buyback $500.00 million in shares. This buyback authorization allows the construction company to purchase up to 15.2% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

KB Home Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 18th. Stockholders of record on Thursday, May 4th were issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 1.35%. The ex-dividend date of this dividend was Wednesday, May 3rd. KB Home’s dividend payout ratio is currently 6.59%.

Insider Activity

In related news, CEO Jeffrey T. Mezger sold 150,000 shares of the stock in a transaction that occurred on Tuesday, May 16th. The shares were sold at an average price of $45.26, for a total value of $6,789,000.00. Following the completion of the transaction, the chief executive officer now directly owns 1,472,577 shares of the company’s stock, valued at approximately $66,648,835.02. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 4.44% of the company’s stock.

Hedge Funds Weigh In On KB Home

Hedge funds and other institutional investors have recently modified their holdings of the stock. Ergoteles LLC raised its position in shares of KB Home by 5.8% in the 3rd quarter. Ergoteles LLC now owns 52,063 shares of the construction company’s stock valued at $1,349,000 after purchasing an additional 2,865 shares during the last quarter. Lisanti Capital Growth LLC purchased a new position in KB Home during the 4th quarter worth approximately $3,909,000. Guardian Wealth Advisors LLC purchased a new position in KB Home during the 3rd quarter worth approximately $27,000. Rockefeller Capital Management L.P. raised its position in KB Home by 4.3% during the 3rd quarter. Rockefeller Capital Management L.P. now owns 81,571 shares of the construction company’s stock worth $2,114,000 after buying an additional 3,338 shares during the last quarter. Finally, Seven Eight Capital LP purchased a new position in KB Home during the 3rd quarter worth approximately $670,000. 89.29% of the stock is owned by hedge funds and other institutional investors.

About KB Home

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KB Home engages in selling and building a variety of new homes. It builds various types of homes, including attached and detached single-family homes, townhomes, and condominiums. The firm operates through the following segments: West Coast, Southwest, Central, and Southeast. It offer homes in development communities, at urban in-fill locations and as part of mixed-use projects.