KB Home (NYSE:KBH) Shares Gap Up After Dividend Announcement

Posted by Defense World Staff on Apr 22nd, 2023

KB Home (NYSE:KBH – Get Rating)’s stock price gapped up prior to trading on Thursday following a dividend announcement from the company. The stock had previously closed at $40.88, but opened at $42.07. KB Home shares last traded at $42.43, with a volume of 411,569 shares.

The newly announced dividend which will be paid on Thursday, May 18th. Investors of record on Thursday, May 4th will be paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 1.44%. KB Home’s payout ratio is 6.59%.

Analyst Ratings Changes

A number of research firms recently issued reports on KBH. Keefe, Bruyette & Woods increased their target price on KB Home from $45.00 to $47.00 and gave the stock a “market perform” rating in a research note on Tuesday, March 28th. StockNews.com started coverage on shares of KB Home in a research note on Thursday, March 16th. They set a “hold” rating for the company. JPMorgan Chase & Co. raised shares of KB Home from an “underweight” rating to a “neutral” rating and raised their price target for the stock from $32.50 to $42.50 in a research note on Friday, March 24th. Wedbush reaffirmed an “outperform” rating and set a $42.00 price target on shares of KB Home in a research note on Monday, March 20th. Finally, TheStreet raised shares of KB Home from a “c+” rating to a “b-” rating in a research note on Wednesday, January 18th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, KB Home presently has a consensus rating of “Hold” and a consensus price target of $40.27.

KB Home Stock Performance

The firm has a fifty day simple moving average of $37.54 and a 200-day simple moving average of $33.86. The firm has a market cap of $3.44 billion, a price-to-earnings ratio of 4.58, a P/E/G ratio of 1.11 and a beta of 1.61.

KB Home (NYSE:KBH – Get Rating) last posted its earnings results on Wednesday, March 22nd. The construction company reported $1.45 earnings per share for the quarter, topping analysts’ consensus estimates of $1.05 by $0.40. KB Home had a return on equity of 22.86% and a net margin of 11.73%. The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter last year, the firm earned $1.47 earnings per share. The company’s revenue was down 1.4% on a year-over-year basis. Analysts expect that KB Home will post 5.14 earnings per share for the current fiscal year.

KB Home announced that its board has authorized a share buyback program on Wednesday, March 22nd that permits the company to buyback $500.00 million in shares. This buyback authorization permits the construction company to reacquire up to 15.2% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On KB Home

Hedge funds and other institutional investors have recently modified their holdings of the company. Citigroup Inc. increased its position in shares of KB Home by 20.9% in the first quarter. Citigroup Inc. now owns 109,019 shares of the construction company’s stock worth $3,530,000 after purchasing an additional 18,818 shares during the period. Acadian Asset Management LLC increased its position in shares of KB Home by 35.5% in the first quarter. Acadian Asset Management LLC now owns 2,169 shares of the construction company’s stock worth $69,000 after purchasing an additional 568 shares during the period. MetLife Investment Management LLC increased its position in shares of KB Home by 39.7% in the first quarter. MetLife Investment Management LLC now owns 96,105 shares of the construction company’s stock worth $3,112,000 after purchasing an additional 27,327 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its position in shares of KB Home by 10.5% in the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 31,411 shares of the construction company’s stock worth $1,017,000 after purchasing an additional 2,995 shares during the period. Finally, Great West Life Assurance Co. Can grew its position in KB Home by 7.1% in the first quarter. Great West Life Assurance Co. Can now owns 47,231 shares of the construction company’s stock valued at $1,571,000 after acquiring an additional 3,140 shares during the last quarter. Institutional investors and hedge funds own 89.29% of the company’s stock.

KB Home Company Profile

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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.