Cetera Investment Advisers has decreased its stake in KB Home (NYSE: KBH) by 12.7% during the second quarter of 2023. This information was disclosed in the company’s latest filing with the Securities and Exchange Commission (SEC). Following the sale of 4,869 shares, Cetera now holds 33,485 shares, valued at approximately $1.77 million.
Other institutional investors have also made significant moves regarding KB Home shares. Notably, Banque Cantonale Vaudoise acquired a new position in the company during the first quarter, valued at around $40,000. Similarly, BNP Paribas Asset Management purchased shares worth $44,000 in the second quarter, while Manchester Capital Management LLC increased its holdings by 30.1%, owning 955 shares worth $56,000 after an additional purchase of 221 shares.
Institutional investors now control 96.09% of KB Home’s stock, indicating strong institutional confidence in the company.
Recent Performance and Earnings Report
On September 24, 2023, KB Home announced its quarterly earnings, reporting $1.61 earnings per share (EPS), surpassing analysts’ expectations of $1.50 by $0.11. The company’s revenue for the quarter reached $1.62 billion, exceeding predictions of $1.59 billion. Despite this success, KB Home’s quarterly revenue saw a decline of 7.4% year-over-year, compared to $2.04 EPS during the same period last year.
KB Home’s stock performance reflects a market capitalization of $4.16 billion, with a price-to-earnings ratio of 8.52 and a beta of 1.36. The stock opened at $64.29 on Monday and has fluctuated between a 52-week low of $48.90 and a high of $84.38. The stock’s moving averages stand at $61.81 over 50 days and $58.93 over 200 days.
Dividends and Analyst Ratings
KB Home recently declared a quarterly dividend of $0.25, distributed on November 26, 2023, to shareholders recorded on November 13, 2023. This reflects an annualized dividend of $1.00 and a yield of 1.6%, with a payout ratio of 13.25%.
Analysts have varying opinions on KB Home’s stock. Bank of America reduced its target price from $67.00 to $62.00, rating it as “neutral.” Weiss Ratings maintained a “hold (c+)” rating, while Evercore ISI set a target price of $65.00 with an “in-line” rating. Zacks Research upgraded KB Home from “strong sell” to “hold,” and Oppenheimer initiated coverage with a “market perform” rating. Currently, one analyst rates the stock as a Strong Buy, two as Buy, eleven as Hold, and one as Sell.
Insider trading activity has also been notable, with Albert Z. Praw, the executive vice president, selling 20,284 shares on November 4, 2023, at an average price of $60.08, totaling over $1.2 million. Following this transaction, he retains a direct ownership of 104,062 shares, valued at approximately $6.25 million.
KB Home operates as a major homebuilding company in the United States, with operations segmented into the West Coast, Southwest, Central, and Southeast regions. The company specializes in various residential properties, catering primarily to first-time buyers and those seeking to upgrade their homes.
