KB Home (NYSE:KBH) Shares Gap Down Following Weak Earnings

KB Home (NYSE:KBH - Get Free Report)'s share price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $87.43, but opened at $83.20. KB Home shares last traded at $84.13, with a volume of 616,130 shares.

The construction company reported $2.04 earnings per share for the quarter, missing analysts' consensus estimates of $2.06 by ($0.02). KB Home had a return on equity of 15.66% and a net margin of 9.43%. The firm had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.73 billion. During the same quarter in the previous year, the firm earned $1.80 EPS. The business's quarterly revenue was up 10.3% compared to the same quarter last year.

KB Home Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 22nd. Stockholders of record on Thursday, August 8th were paid a $0.25 dividend. The ex-dividend date was Thursday, August 8th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.21%. KB Home's dividend payout ratio (DPR) is 13.23%.

Analyst Ratings Changes

Several research firms have weighed in on KBH. Barclays boosted their price target on shares of KB Home from $78.00 to $99.00 and gave the stock an "overweight" rating in a research note on Wednesday. Keefe, Bruyette & Woods boosted their target price on KB Home from $74.00 to $77.00 and gave the company a "market perform" rating in a research note on Thursday, June 20th. Bank of America raised their price target on KB Home from $75.00 to $90.00 and gave the stock a "neutral" rating in a research report on Thursday, September 19th. Wells Fargo & Company boosted their price objective on KB Home from $70.00 to $80.00 and gave the company an "equal weight" rating in a research report on Monday, September 9th. Finally, Royal Bank of Canada downgraded shares of KB Home from a "sector perform" rating to an "underperform" rating and set a $70.00 target price on the stock. in a research note on Thursday, September 5th. Three investment analysts have rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $77.27.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Thrivent Financial for Lutherans grew its position in shares of KB Home by 0.9% in the 2nd quarter. Thrivent Financial for Lutherans now owns 18,578 shares of the construction company's stock worth $1,304,000 after buying an additional 162 shares during the period. Public Employees Retirement Association of Colorado increased its stake in shares of KB Home by 3.9% during the second quarter. Public Employees Retirement Association of Colorado now owns 5,029 shares of the construction company's stock valued at $353,000 after purchasing an additional 189 shares in the last quarter. US Bancorp DE increased its stake in shares of KB Home by 1.6% during the first quarter. US Bancorp DE now owns 12,317 shares of the construction company's stock valued at $873,000 after purchasing an additional 191 shares in the last quarter. Wealthcare Advisory Partners LLC lifted its holdings in shares of KB Home by 2.1% during the first quarter. Wealthcare Advisory Partners LLC now owns 11,029 shares of the construction company's stock valued at $782,000 after purchasing an additional 231 shares during the last quarter. Finally, Steward Partners Investment Advisory LLC boosted its position in shares of KB Home by 10.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 3,225 shares of the construction company's stock worth $201,000 after purchasing an additional 293 shares in the last quarter. Hedge funds and other institutional investors own 96.09% of the company's stock.

KB Home Trading Down 5.4 %

The company has a market cap of $6.22 billion, a PE ratio of 10.95, a P/E/G ratio of 0.89 and a beta of 1.81. The firm has a 50 day moving average of $82.33 and a two-hundred day moving average of $73.37.

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.