Wells Fargo & Company Cuts KB Home (NYSE:KBH) Price Target to $65.00

KB Home (NYSE:KBH) had its price objective cut by Wells Fargo & Company from $70.00 to $65.00 in a research note issued to investors on Tuesday,Benzinga reports. They currently have an underweight rating on the construction company’s stock.

A number of other research firms have also recently commented on KBH. Bank of America reduced their price objective on shares of KB Home from $76.00 to $71.00 and set a “neutral” rating for the company in a research report on Monday. Keefe, Bruyette & Woods decreased 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 research note on Friday, January 17th. UBS Group reduced their price objective on KB Home from $105.00 to $100.00 and set a “buy” rating for the company in a report on Wednesday, January 8th. Evercore ISI increased their target price on KB Home from $88.00 to $95.00 and gave the stock an “outperform” rating in a research note on Tuesday, January 14th. Finally, Royal Bank of Canada upgraded KB Home from an “underperform” rating to a “sector perform” rating and reduced their price target for the company from $70.00 to $67.00 in a research note on Friday, January 10th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $76.21.

KB Home Stock Performance

Shares of KBH stock opened at $68.80 on Tuesday. KB Home has a 52-week low of $58.15 and a 52-week high of $89.70. The stock has a market cap of $5.05 billion, a price-to-earnings ratio of 8.12, a PEG ratio of 0.93 and a beta of 1.86. The firm’s 50-day moving average is $71.05 and its 200-day moving average is $77.91.

KB Home (NYSE:KBH) last released its quarterly earnings data on Monday, January 13th. The construction company reported $2.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.44 by $0.08. KB Home had a return on equity of 16.46% and a net margin of 9.45%. The firm had revenue of $2 billion for the quarter, compared to analyst estimates of $1.99 billion. During the same quarter in the prior year, the company earned $1.85 earnings per share. The business’s revenue for the quarter was up 19.5% compared to the same quarter last year. Sell-side analysts predict that KB Home will post 8.5 EPS for the current fiscal year.

KB Home Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 20th. Shareholders of record on Thursday, February 6th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, February 6th. This represents a $1.00 dividend on an annualized basis and a yield of 1.45%. KB Home’s payout ratio is 11.81%.

Insider Buying and Selling at KB Home

In related news, CFO Jeff Kaminski sold 27,500 shares of the stock in a transaction that occurred 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 sale, the chief financial officer now owns 34,473 shares in the company, valued at approximately $2,370,708.21. This trade represents a 44.37 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 4.44% of the company’s stock.

Institutional Investors Weigh In On KB Home

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Barclays PLC boosted its stake in KB Home by 24.5% in the third quarter. Barclays PLC now owns 196,229 shares of the construction company’s stock valued at $16,816,000 after buying an additional 38,638 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in KB Home by 22.1% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 906,236 shares of the construction company’s stock valued at $77,655,000 after purchasing an additional 164,010 shares during the last quarter. Neo Ivy Capital Management acquired a new stake in KB Home in the third quarter valued at approximately $956,000. Cerity Partners LLC grew its stake in shares of KB Home by 24.7% during the third quarter. Cerity Partners LLC now owns 38,742 shares of the construction company’s stock worth $3,320,000 after buying an additional 7,679 shares during the last quarter. Finally, Citigroup Inc. increased its holdings in shares of KB Home by 62.1% during the third quarter. Citigroup Inc. now owns 107,051 shares of the construction company’s stock worth $9,173,000 after buying an additional 40,992 shares in the last quarter. 96.09% of the stock is currently owned by institutional investors.

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.