KB Home (NYSE:KBH) Shares Gap Up on Earnings Beat

KB Home (NYSE:KBH)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $42.38, but opened at $45.94. KB Home shares last traded at $48.37, with a volume of 156,232 shares.

The construction company reported $1.91 EPS for the quarter, topping analysts’ consensus estimates of $1.77 by $0.14. The company had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.71 billion. KB Home had a return on equity of 20.13% and a net margin of 9.86%. The company’s quarterly revenue was up 40.3% compared to the same quarter last year. During the same period last year, the business posted $1.12 EPS.

A number of equities analysts have recently commented on the company. Zacks Investment Research upgraded KB Home from a “sell” rating to a “hold” rating and set a $43.00 price objective on the stock in a report on Tuesday, September 28th. Bank of America assumed coverage on KB Home in a report on Monday, November 8th. They issued a “neutral” rating on the stock. Barclays raised their price objective on KB Home from $56.00 to $57.00 and gave the stock an “overweight” rating in a report on Wednesday, December 15th. JPMorgan Chase & Co. cut their price objective on KB Home from $59.00 to $53.00 and set a “neutral” rating on the stock in a report on Thursday, October 14th. Finally, Wedbush raised their price objective on KB Home from $60.00 to $73.00 in a report on Thursday. Four equities research analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and an average target price of $54.73.

In other KB Home news, Director Melissa Lora sold 24,393 shares of the firm’s stock in a transaction that occurred on Wednesday, October 20th. The stock was sold at an average price of $40.83, for a total transaction of $995,966.19. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jeffrey T. Mezger sold 166,861 shares of the firm’s stock in a transaction that occurred on Tuesday, November 9th. The shares were sold at an average price of $42.66, for a total value of $7,118,290.26. The disclosure for this sale can be found here. In the last quarter, insiders sold 352,032 shares of company stock valued at $14,837,469. Insiders own 4.40% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. grew its position in shares of KB Home by 1.9% in the 2nd quarter. Vanguard Group Inc. now owns 8,227,362 shares of the construction company’s stock worth $335,018,000 after acquiring an additional 154,533 shares in the last quarter. Alliancebernstein L.P. grew its position in shares of KB Home by 6.2% in the 3rd quarter. Alliancebernstein L.P. now owns 3,906,822 shares of the construction company’s stock worth $152,054,000 after acquiring an additional 227,874 shares in the last quarter. Macquarie Group Ltd. grew its position in shares of KB Home by 0.4% in the 3rd quarter. Macquarie Group Ltd. now owns 3,800,144 shares of the construction company’s stock worth $147,902,000 after acquiring an additional 13,738 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of KB Home by 3.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,972,346 shares of the construction company’s stock worth $115,691,000 after acquiring an additional 92,744 shares in the last quarter. Finally, State Street Corp grew its position in shares of KB Home by 1.4% in the 2nd quarter. State Street Corp now owns 2,731,573 shares of the construction company’s stock worth $111,230,000 after acquiring an additional 36,816 shares in the last quarter. Institutional investors own 88.54% of the company’s stock.

The company has a market cap of $4.29 billion, a price-to-earnings ratio of 8.13, a price-to-earnings-growth ratio of 0.15 and a beta of 1.76. The firm has a 50-day moving average price of $43.04 and a 200 day moving average price of $41.86.

KB Home Company Profile (NYSE:KBH)

KB Home engages in selling and building a variety of new homes. It builds various types of homes, including attached and detached single-family homes, townhomes, and condominiums. The firm operates through the following segments: West Coast, Southwest, Central, and Southeast. It offer homes in development communities, at urban in-fill locations and as part of mixed-use projects.

Further Reading: Are sell-side analysts objective?

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