KB Home (NYSE:KBH) has received a consensus rating of “Hold” from fourteen brokerages monitoring the stock, according to data from MarketBeat.com. This consensus follows varied recommendations, with two analysts advising to sell, ten recommending a hold, and two suggesting a buy. The average price target for KB Home shares now stands at $62.73 for the next twelve months.
Several brokerages have recently revisited their assessments of KB Home. The Royal Bank of Canada lowered its price target from $59.00 to $54.00, maintaining a “sector perform” rating as of December 19, 2023. Similarly, Keefe, Bruyette & Woods reduced its target price from $67.00 to $62.00 and issued a “market perform” rating on December 23, 2023. Barclays also adjusted its target, decreasing it from $71.00 to $62.00 while keeping an “overweight” rating for the company. Adding to the shifts, Zacks Research downgraded KB Home from a “hold” to a “strong sell” rating, also on December 23, 2023. Lastly, Wells Fargo & Company cut its price objective from $60.00 to $55.00, designating an “underweight” rating on December 19, 2023.
Recent Stock Performance and Financial Results
On December 22, 2023, KB Home’s stock opened at $61.02. The company has experienced volatility over the past year, with a 52-week low of $48.90 and a high of $68.71. The firm’s financial metrics indicate a quick ratio of 0.53, a current ratio of 5.77, and a debt-to-equity ratio of 0.43. Over the last 50 days, the stock has maintained a simple moving average of $60.28, while the 200-day average stands at $61.37. KB Home currently has a market capitalization of $3.85 billion, a price-to-earnings (P/E) ratio of 12.43, and a P/E to growth (P/E/G) ratio of 7.96.
The company’s most recent earnings report, released on December 18, 2023, showed that KB Home achieved earnings per share (EPS) of $1.92 for the quarter, surpassing analyst expectations of $1.79 by $0.13. The firm reported a net margin of 6.88% and a return on equity of 11.40%, with quarterly revenue reaching $1.69 billion, exceeding the consensus estimate of $1.66 billion. However, this revenue reflects a decline of 15.5% compared to the same quarter last year, where the EPS was $2.52. Analysts anticipate an EPS of 8.42 for the current fiscal year.
Dividend Declaration and Company Overview
In addition to its financial performance, KB Home declared a quarterly dividend of $0.25 per share, scheduled for payment on February 19, 2024. Shareholders of record as of February 5, 2024, will receive this dividend, which equates to an annualized sum of $1.00 and a yield of 1.6%. The company’s current dividend payout ratio (DPR) stands at 20.37%.
Founded in 1957 and headquartered in Los Angeles, California, KB Home is recognized as a pioneering force in the homebuilding industry. As one of the earliest homebuilders to go public, the company provides access to one of the largest residential construction platforms in the United States. KB Home focuses on a diverse range of homebuyers, particularly first-time buyers, those looking to upgrade, and active adults. The firm designs and constructs various housing options, including single-family homes, townhomes, and condominiums, leveraging decades of expertise in land acquisition and community planning.
As KB Home navigates the current market landscape, analysts and investors alike will be monitoring the company’s performance closely, especially in light of fluctuating stock prices and evolving economic conditions.
