KB Home (NYSE:KBH) Stock Price Up 5.4% - What's Next?

KB Home (NYSE:KBH) saw its shares increase by 5.4% on Monday, reaching a high of $69.97 and subsequently trading at $70.43. During mid-day trading, the volume was 653,001 shares, significantly lower than the average of 1,614,052 shares. Prior to this rise, the stock closed at $66.85.

Analysts Set New Price Targets

Several financial brokerage firms have recently commented on KB Home. Raymond James reinforced an "outperform" rating, adjusting its price target for KB Home from $93.00 to $80.00. Meanwhile, Wells Fargo lowered its target from $74.00 to $65.00, assigning an "underweight" rating. Seaport Res Ptn improved its rating from "strong sell" to "hold." Evercore ISI raised its price objective from $88.00 to $95.00 and maintained an "outperform" rating. Additionally, UBS Group cut its target from $105.00 to $100.00 while retaining a "buy" rating. In total, two analysts rated the stock as a sell, nine labeled it a hold, and three recommended it as a buy. MarketBeat.com data shows that KB Home has an average rating of "Hold" with a consensus target price of $76.21.

KB Home Stock Performance

KB Home's 50-day moving average stands at $71.60, and the 200-day moving average is $78.06. The company has a market capitalization of $5.15 billion, a price-to-earnings (P/E) ratio of 8.29, and a price-to-earnings-growth (PEG) ratio of 0.93. Notably, KB Home's beta is 1.86, suggesting higher volatility compared to the overall market.

The company recently announced its quarterly earnings results on January 13, reporting earnings of $2.52 per share, surpassing analyst expectations of $2.44. The net margin was 9.45%, and return on equity reached 16.46%. Revenue for the quarter was reported at $2 billion, exceeding projections of $1.99 billion and representing a year-over-year increase of 19.5% compared to the same period last year. Analysts predict that KB Home will achieve an EPS of 8.5 for the current fiscal year.

KB Home Announces Dividend

KB Home has also declared a quarterly dividend of $0.25 per share, set to be paid on February 20th to shareholders on record as of February 6th. The ex-dividend date is also February 6th. This indicates an annualized dividend of $1.00, resulting in a yield of 1.42%. The company's payout ratio currently stands at 11.81%.

Institutional Investor Activity

Recent activity among hedge funds shows that many have adjusted their holdings in KB Home. FMR LLC increased its stake by 47.9% during the third quarter, possessing 5,411,255 shares worth approximately $463.7 million after acquiring 1,752,498 additional shares. State Street Corp raised its position by 1.3% during the same period, now holding 3,539,328 shares valued at $303.3 million. Fisher Asset Management increased its stake by 3.4%, bringing its total to 2,206,172 shares worth $189 million. Geode Capital Management also increased its holdings by 0.9%, while Holocene Advisors LP acquired a new position valued at $89.9 million. Overall, institutional investors own around 96.09% of the company's stock.

About KB Home

KB Home operates as a home construction company in the United States, divided into four segments: West Coast, Southwest, Central, and Southeast. It focuses on building and selling various types of residential homes, including single-family homes, townhomes, and condos primarily targeted towards first-time, move-up, and active adult buyers.

Conclusion

With KB Home's recent stock price increase and positive earnings report, investors are keenly watching its next moves. Analysts' varied ratings and price targets complicate predictions, but many are optimistic about its potential in the housing market.

KBHome, Stock, Earnings