Wells Fargo & Company Issues Pessimistic Forecast for KB Home (NYSE:KBH) Stock Price

KB Home (NYSE:KBH) had its price objective lowered by Wells Fargo & Company from $63.00 to $57.00 in a report issued on Tuesday morning,Benzinga reports. The firm currently has an underweight rating on the construction company’s stock.

KBH has been the topic of several other reports. Keefe, Bruyette & Woods cut their price target on shares of KB Home from $85.00 to $76.00 and set a “market perform” rating on the stock in a report on Friday, January 17th. UBS Group decreased their price target on KB Home from $97.00 to $86.00 and set a “buy” rating for the company in a research report on Tuesday. Raymond James reissued an “outperform” rating and issued a $80.00 price objective (down previously from $93.00) on shares of KB Home in a research report on Tuesday, January 21st. Evercore ISI upped their price objective on KB Home from $88.00 to $95.00 and gave the company an “outperform” rating in a research note on Tuesday, January 14th. Finally, Seaport Res Ptn upgraded KB Home from a “hold” rating to a “strong-buy” rating in a research note on Thursday, March 6th. Three analysts have rated the stock with a sell rating, seven have given a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $71.21.

KB Home Stock Performance

KBH opened at $59.29 on Tuesday. The company has a market cap of $4.24 billion, a price-to-earnings ratio of 7.00, a PEG ratio of 0.90 and a beta of 1.89. The company’s fifty day moving average price is $63.63 and its two-hundred day moving average price is $72.62. KB Home has a 1-year low of $56.41 and a 1-year high of $89.70. The company has a current ratio of 5.51, a quick ratio of 0.83 and a debt-to-equity ratio of 0.42.

KB Home (NYSE:KBH) last posted its earnings results on Monday, March 24th. The construction company reported $1.49 earnings per share for the quarter, missing analysts’ consensus estimates of $1.56 by ($0.07). The company had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.51 billion. KB Home had a net margin of 9.45% and a return on equity of 16.46%. The firm’s revenue for the quarter was down 5.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.76 EPS. On average, analysts expect that KB Home will post 8.42 EPS for the current fiscal year.

KB Home Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, February 20th. Shareholders of record on Thursday, February 6th were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, February 6th. This represents a $1.00 dividend on an annualized basis and a yield of 1.69%. KB Home’s payout ratio is 12.20%.

Insiders Place Their Bets

In other news, CFO Jeff Kaminski sold 27,500 shares of the business’s stock in a transaction on Tuesday, January 28th. The shares were 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 directly owns 34,473 shares in the company, valued at $2,370,708.21. The trade was a 44.37 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 3.89% of the company’s stock.

Institutional Trading of KB Home

A number of large investors have recently modified their holdings of KBH. Xponance Inc. grew its position in KB Home by 1.7% during the fourth quarter. Xponance Inc. now owns 9,815 shares of the construction company’s stock valued at $645,000 after acquiring an additional 163 shares during the last quarter. Principal Securities Inc. raised its stake in shares of KB Home by 43.6% during the fourth quarter. Principal Securities Inc. now owns 590 shares of the construction company’s stock valued at $39,000 after acquiring an additional 179 shares during the last quarter. Blue Trust Inc. increased its holdings in KB Home by 15.3% during the 4th quarter. Blue Trust Inc. now owns 1,465 shares of the construction company’s stock valued at $96,000 after purchasing an additional 194 shares during the period. Amundi raised its position in KB Home by 29.6% during the 4th quarter. Amundi now owns 880 shares of the construction company’s stock valued at $58,000 after purchasing an additional 201 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in KB Home by 0.6% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 37,019 shares of the construction company’s stock worth $2,433,000 after buying an additional 206 shares during the period. Institutional investors own 96.09% of the company’s stock.

About KB Home

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.