Zacks Investment Research upgraded shares of KB Home (NYSE:KBH) from a hold rating to a buy rating in a report released on Monday, Zacks.com reports. They currently have $27.00 price target on the construction company’s stock.
According to Zacks, “KB Home reported better-than-expected fiscal second-quarter results. Earnings and revenues topped the Zacks Consensus Estimate by 30.8% and 9.3%, respectively. The results benefited from continued progress of the Returns-Focused Growth plan, given stellar 17% average community count growth. Notably, shares of the company have outperformed its industry year to date. It believes that declining mortgage rates, steady economic growth, high consumer confidence and favorable demographics will help it grow further in the remainder of fiscal 2019. Consequently, it provided an optimistic fiscal third-quarter guidance that suggests a sequential improvement. Yet, lower average selling price (ASP) is a concern. ASP declined 8% during the quarter due to a shift in the geographic mix of homes delivered. Also, higher land and labor cost added to the woes.”
Several other equities analysts also recently weighed in on KBH. Credit Suisse Group reiterated a neutral rating on shares of Aggreko in a research report on Wednesday, March 27th. ValuEngine downgraded Zogenix from a strong-buy rating to a buy rating in a research report on Thursday, April 11th. Bank of America set a $420.00 target price on Boeing and gave the company a hold rating in a research report on Thursday, June 27th. Buckingham Research upgraded KB Home from a neutral rating to a buy rating and lifted their target price for the company from $27.00 to $30.00 in a research report on Thursday, June 27th. Finally, BTIG Research downgraded EVO Payments from a buy rating to a neutral rating in a research report on Monday, July 1st. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and seven have given a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $26.27.
KB Home (NYSE:KBH) last released its earnings results on Wednesday, June 26th. The construction company reported $0.51 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.39 by $0.12. The company had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $933.49 million. KB Home had a return on equity of 12.43% and a net margin of 5.94%. KB Home’s quarterly revenue was down 7.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.57 earnings per share. As a group, research analysts forecast that KB Home will post 2.69 EPS for the current year.
In other news, CAO William R. Hollinger sold 68,147 shares of KB Home stock in a transaction dated Monday, May 13th. The stock was sold at an average price of $26.16, for a total value of $1,782,725.52. Following the sale, the chief accounting officer now directly owns 228,174 shares of the company’s stock, valued at $5,969,031.84. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jeffrey T. Mezger sold 489,258 shares of KB Home stock in a transaction dated Wednesday, April 17th. The stock was sold at an average price of $25.37, for a total value of $12,412,475.46. Following the completion of the sale, the insider now directly owns 1,056,532 shares in the company, valued at $26,804,216.84. The disclosure for this sale can be found here. Insiders sold 983,838 shares of company stock worth $25,116,916 over the last 90 days. Company insiders own 7.32% of the company’s stock.
Hedge funds have recently modified their holdings of the company. Liberty Wealth Management LLC bought a new stake in shares of KB Home in the fourth quarter worth about $25,000. Quadrant Capital Group LLC increased its holdings in shares of KB Home by 2,436.3% in the first quarter. Quadrant Capital Group LLC now owns 2,029 shares of the construction company’s stock worth $47,000 after purchasing an additional 1,949 shares during the last quarter. Penserra Capital Management LLC bought a new stake in shares of KB Home in the first quarter worth about $59,000. Quantamental Technologies LLC bought a new stake in shares of KB Home in the first quarter worth about $70,000. Finally, ETF Managers Group LLC increased its holdings in shares of KB Home by 11.2% in the first quarter. ETF Managers Group LLC now owns 5,042 shares of the construction company’s stock worth $122,000 after purchasing an additional 506 shares during the last quarter. 89.53% of the stock is currently owned by hedge funds and other institutional investors.
About KB Home
KB Home operates as a homebuilding company in the United States. It operates in four segments: West Coast, Southwest, Central, and Southeast. The company builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, and active adult homebuyers.
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