KB Home (NYSE:KBH) Shares Gap Down Following Weak Earnings

KB Home (NYSE:KBH)’s share price gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $87.43, but opened at $83.20. KB Home shares last traded at $84.13, with a volume of 616,130 shares trading hands.

The construction company reported $2.04 earnings per share for the quarter, missing analysts’ consensus estimates of $2.06 by ($0.02). The company had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.73 billion. KB Home had a net margin of 9.43% and a return on equity of 15.66%. The business’s quarterly revenue was up 10.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.80 EPS.

KB Home Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 22nd. Investors of record on Thursday, August 8th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.19%. The ex-dividend date of this dividend was Thursday, August 8th. KB Home’s dividend payout ratio (DPR) is 13.23%.

Analyst Ratings Changes

KBH has been the subject of several research reports. Bank of America increased their target price on KB Home from $75.00 to $90.00 and gave the company a “neutral” rating in a research report on Thursday, September 19th. Barclays upped their price objective on KB Home from $78.00 to $99.00 and gave the company an “overweight” rating in a research note on Wednesday. The Goldman Sachs Group lifted their target price on shares of KB Home from $72.00 to $82.00 and gave the stock a “neutral” rating in a research report on Tuesday, September 3rd. Wells Fargo & Company boosted their target price on shares of KB Home from $70.00 to $80.00 and gave the stock an “equal weight” rating in a report on Monday, September 9th. Finally, Wedbush raised their price target on shares of KB Home from $67.00 to $75.00 and gave the company a “neutral” rating in a research note on Wednesday. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $77.27.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Fidelis Capital Partners LLC acquired a new stake in KB Home during the first quarter worth approximately $60,000. Plato Investment Management Ltd grew its position in shares of KB Home by 72.0% during the 1st quarter. Plato Investment Management Ltd now owns 1,080 shares of the construction company’s stock worth $77,000 after buying an additional 452 shares during the period. Tortoise Investment Management LLC increased its stake in shares of KB Home by 625.3% in the 2nd quarter. Tortoise Investment Management LLC now owns 1,117 shares of the construction company’s stock valued at $78,000 after acquiring an additional 963 shares in the last quarter. Manchester Capital Management LLC lifted its position in shares of KB Home by 134.4% during the 1st quarter. Manchester Capital Management LLC now owns 1,137 shares of the construction company’s stock valued at $81,000 after acquiring an additional 652 shares during the period. Finally, Headlands Technologies LLC bought a new position in KB Home during the first quarter worth $120,000. 96.09% of the stock is owned by institutional investors and hedge funds.

KB Home Stock Up 1.9 %

The firm has a market capitalization of $6.34 billion, a P/E ratio of 11.15, a price-to-earnings-growth ratio of 0.89 and a beta of 1.81. The company’s 50 day moving average is $82.37 and its 200-day moving average is $73.43.

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.