KB Home (NYSE:KBH) Reaches New 52-Week Low – Should You Sell?

KB Home (NYSE:KBH) reached a new 52-week low during trading on Monday . The stock traded as low as $59.89 and last traded at $61.05, with a volume of 170662 shares changing hands. The stock had previously closed at $61.26.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on KBH. Evercore ISI lifted their target price on shares of KB Home from $88.00 to $95.00 and gave the stock an “outperform” rating in a research note on Tuesday, January 14th. Seaport Res Ptn raised shares of KB Home from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 14th. Royal Bank of Canada raised shares of KB Home from an “underperform” rating to a “sector perform” rating and lowered their price target for the stock from $70.00 to $67.00 in a report on Friday, January 10th. Wells Fargo & Company decreased their target price on KB Home from $70.00 to $65.00 and set an “underweight” rating on the stock in a research note on Tuesday, January 28th. Finally, JPMorgan Chase & Co. cut their target price on shares of KB Home from $82.00 to $74.50 and set a “neutral” rating for the company in a research report on Wednesday, January 15th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $76.21.

KB Home Stock Up 3.4 %

The company has a 50 day moving average price of $65.68 and a 200-day moving average price of $75.65. The company has a debt-to-equity ratio of 0.42, a current ratio of 5.51 and a quick ratio of 0.83. The stock has a market capitalization of $4.56 billion, a PE ratio of 7.46, a PEG ratio of 0.90 and a beta of 1.86.

KB Home (NYSE:KBH) last announced its earnings results on Monday, January 13th. The construction company reported $2.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.44 by $0.08. The firm had revenue of $2 billion during the quarter, compared to analyst estimates of $1.99 billion. KB Home had a return on equity of 16.46% and a net margin of 9.45%. The business’s revenue was up 19.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.85 EPS. As a group, analysts forecast that KB Home will post 8.42 earnings per share for the current fiscal year.

KB Home Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 20th. Investors 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 1.58%. KB Home’s payout ratio is 11.81%.

Insider Activity at KB Home

In related news, CFO Jeff Kaminski sold 27,500 shares of the firm’s stock in a transaction that occurred on Tuesday, January 28th. The stock was sold at an average price of $68.77, for a total transaction of $1,891,175.00. Following the completion of the transaction, the chief financial officer now owns 34,473 shares of the company’s stock, valued at $2,370,708.21. This trade represents a 44.37 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 4.44% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On KB Home

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

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.