KB Home (NYSE:KBH) Shares Gap Down - Time to Sell?

KB Home (NYSE:KBH - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $67.26, but opened at $65.80. KB Home shares last traded at $66.22, with a volume of 166,320 shares traded.

Analyst Ratings Changes

A number of research firms recently weighed in on KBH. Barclays cut shares of KB Home from an "overweight" rating to an "equal weight" rating and lowered their target price for the company from $99.00 to $85.00 in a research note on Wednesday, December 11th. Royal Bank of Canada cut KB Home from a "sector perform" rating to an "underperform" rating and set a $70.00 target price for the company. in a report on Thursday, September 5th. The Goldman Sachs Group boosted their price target on KB Home from $72.00 to $82.00 and gave the company a "neutral" rating in a research note on Tuesday, September 3rd. JPMorgan Chase & Co. dropped their price objective on KB Home from $92.50 to $82.00 and set a "neutral" rating for the company in a research note on Friday, December 13th. Finally, Wedbush boosted their target price on shares of KB Home from $67.00 to $75.00 and gave the company a "neutral" rating in a research note on Wednesday, September 25th. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating and three have given a buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $79.17.

KB Home Trading Down 2.2 %

The company has a market capitalization of $4.83 billion, a price-to-earnings ratio of 8.44, a PEG ratio of 0.59 and a beta of 1.81. The company has a 50 day moving average price of $79.18 and a 200 day moving average price of $78.45.

KB Home (NYSE:KBH - Get Free Report) last announced its quarterly earnings data on Tuesday, September 24th. The construction company reported $2.04 EPS for the quarter, missing analysts' consensus estimates of $2.06 by ($0.02). KB Home had a return on equity of 15.69% and a net margin of 9.31%. The firm had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.73 billion. During the same quarter in the previous year, the business earned $1.80 earnings per share. KB Home's revenue for the quarter was up 10.3% compared to the same quarter last year. Equities analysts predict that KB Home will post 8.42 earnings per share for the current year.

KB Home Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, November 27th. Investors of record on Thursday, November 14th were issued a $0.25 dividend. The ex-dividend date was Thursday, November 14th. This represents a $1.00 annualized dividend and a yield of 1.52%. KB Home's dividend payout ratio is currently 12.82%.

Insider Buying and Selling at KB Home

In other KB Home news, CFO Jeff Kaminski sold 27,500 shares of the firm's stock in a transaction dated Monday, October 14th. The stock was sold at an average price of $79.40, for a total transaction of $2,183,500.00. Following the transaction, the chief financial officer now owns 34,473 shares in the company, valued at approximately $2,737,156.20. This trade represents a 44.37 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 4.44% of the company's stock.

Institutional Trading of KB Home

A number of hedge funds have recently modified their holdings of the company. Financial Management Professionals Inc. acquired a new stake in KB Home in the third quarter worth $32,000. Riggs Asset Managment Co. Inc. acquired a new position in KB Home in the third quarter valued at about $43,000. Wilmington Savings Fund Society FSB bought a new stake in shares of KB Home in the third quarter worth about $59,000. Banque Cantonale Vaudoise acquired a new stake in shares of KB Home during the third quarter worth about $61,000. Finally, Tortoise Investment Management LLC grew its position in shares of KB Home by 625.3% in the 2nd quarter. Tortoise Investment Management LLC now owns 1,117 shares of the construction company's stock valued at $78,000 after purchasing an additional 963 shares during the period. 96.09% of the stock is currently owned by institutional investors and hedge funds.

About KB Home

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.