Jeff Kaminski Sells 27,500 Shares of KB Home (NYSE:KBH) Stock

On January 28th, Jeff Kaminski, the Chief Financial Officer of KB Home (NYSE:KBH), sold 27,500 shares of the company’s stock. The sale was conducted at an average price of $68.77 per share, leading to a total transaction value of $1,891,175. Following this sale, Kaminski now holds 34,473 shares in KB Home, which are valued at approximately $2,370,708. This recent transaction indicates a significant reduction, with a 44.37% decrease in his ownership of the stock. The details concerning this transaction were made public through a filing with the Securities and Exchange Commission (SEC) and can be reviewed via the provided link.

Overview of KB Home Stock Performance

Recently, KB Home stock showed a slight increase, trading up by $1.68 to reach $68.80. The trading volume recorded on Thursday was 907,247 shares, which is below the average volume of 1,627,802 shares. The stock's 50-day moving average stands at $71.05, with a longer-term 200-day moving average at $77.91. Currently, the firm boasts a market capitalization of $5.05 billion, a price-to-earnings (P/E) ratio of 8.12, and a P/E growth (P/E/G) ratio of 0.93, alongside a beta of 1.86. Over the past twelve months, KB Home has reached a low of $58.15 and a high of $89.70.

Recent Earnings Results

KB Home published its earnings results on January 13th. The firm reported earnings of $2.52 per share for the quarter, which exceeded analysts' expectations of $2.44 per share by a margin of $0.08. The revenue for the quarter was reported at $2 billion, surpassing the consensus estimate of $1.99 billion. With a net margin of 9.45% and a return on equity of 16.46%, the revenue reflects a 19.5% improvement compared to the same quarter last year. In the prior year’s equivalent quarter, the company reported earnings of $1.85 per share. Analysts forecast KB Home to have an earnings per share (EPS) of 8.5 for the current financial year.

Dividend Announcement

KB Home has also announced its next quarterly dividend payment, which will occur on February 20th. Investors on record by February 6th will receive a dividend of $0.25 per share. The ex-dividend date is February 6th, making this an attractive option for income-focused investors. This dividend amounts to an annualized payment of $1.00, reflecting a yield of 1.45%. The company's payout ratio stands at 11.81%, suggesting a conservative approach to distributing earnings.

Institutional Trading Activity

Recently, several institutional investors have engaged in trading KB Home shares. For instance, FMR LLC increased its holdings by 47.9% in the third quarter, now owning over 5.4 million shares valued at approximately $463 million. Holocene Advisors LP and Hennessy Advisors Inc. have also invested significantly in KB Home. Institutional ownership comprises around 96.09% of the company’s total stock, indicating strong confidence from large investment entities.

Analyst Ratings and Forecasts

Various analysts have provided updates on KB Home’s stock. Raymond James maintained an “outperform” rating but adjusted the price target from $93.00 to $80.00. Meanwhile, Bank of America and Wells Fargo & Company also modified their price targets, indicating cautiousness toward the stock’s near-term performance. Currently, two analysts classify the stock as a sell, while nine suggest a hold rating, and three recommend a buy. According to MarketBeat, the average recommendation for KB Home is a Hold, with a price target of $76.21.

Company Overview

KB Home is a prominent homebuilding company operating across various regions in the United States. The company operates through four primary segments: West Coast, Southwest, Central, and Southeast. It specializes in building and selling an array of homes, ranging from single-family residences to condominiums, primarily targeting first-time buyers and those looking to upgrade.

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