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

KB Home (NYSE:KBH) gapped up prior to trading on Thursday after the company announced a dividend. The stock had previously closed at $60.92, but opened at $62.82. KB Home shares last traded at $61.62, with a volume of 171,889 shares traded.

The newly announced dividend which will be paid on Thursday, May 23rd. Investors of record on Thursday, May 9th will be given a $0.25 dividend. This is a boost from KB Home’s previous quarterly dividend of $0.20. This represents a $1.00 annualized dividend and a yield of 1.64%. The ex-dividend date of this dividend is Wednesday, May 8th. KB Home’s dividend payout ratio (DPR) is 10.88%.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Keefe, Bruyette & Woods raised their target price on KB Home from $67.00 to $77.00 and gave the stock a “market perform” rating in a research report on Thursday, March 28th. Wells Fargo & Company lifted their price objective on KB Home from $65.00 to $70.00 and gave the company an “equal weight” rating in a report on Thursday, March 21st. Barclays lifted their price objective on KB Home from $75.00 to $77.00 and gave the company an “overweight” rating in a report on Friday, March 22nd. Evercore ISI cut their price objective on KB Home from $82.00 to $78.00 and set an “outperform” rating for the company in a report on Thursday, March 21st. Finally, Raymond James lifted their price objective on KB Home from $61.00 to $70.00 and gave the company an “outperform” rating in a report on Thursday, January 18th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $66.11.

KB Home Price Performance

The stock has a 50-day moving average of $65.93 and a 200 day moving average of $58.52. The stock has a market capitalization of $4.63 billion, a price-to-earnings ratio of 8.30, a price-to-earnings-growth ratio of 0.69 and a beta of 1.73.

KB Home (NYSE:KBH) last announced its quarterly earnings data on Wednesday, March 20th. The construction company reported $1.76 EPS for the quarter, topping analysts’ consensus estimates of $1.57 by $0.19. The firm had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.46 billion. KB Home had a return on equity of 15.78% and a net margin of 9.29%. The company’s revenue was up 6.5% on a year-over-year basis. During the same period last year, the company earned $1.45 earnings per share. Sell-side analysts anticipate that KB Home will post 8.01 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Jeff Kaminski sold 4,928 shares of the business’s stock in a transaction dated Wednesday, January 24th. The stock was sold at an average price of $59.86, for a total transaction of $294,990.08. Following the completion of the transaction, the chief financial officer now directly owns 38,386 shares in the company, valued at approximately $2,297,785.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In other news, CFO Jeff Kaminski sold 4,928 shares of the business’s stock in a transaction dated Wednesday, January 24th. The stock was sold at an average price of $59.86, for a total transaction of $294,990.08. Following the completion of the transaction, the chief financial officer now directly owns 38,386 shares in the company, valued at approximately $2,297,785.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Brian J. Woram sold 83,272 shares of the business’s stock in a transaction dated Tuesday, January 30th. The stock was sold at an average price of $60.53, for a total value of $5,040,454.16. Following the transaction, the executive vice president now owns 156,119 shares of the company’s stock, valued at $9,449,883.07. The disclosure for this sale can be found here. Insiders sold a total of 412,021 shares of company stock worth $24,954,977 over the last three months. 4.44% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On KB Home

Institutional investors have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC grew its position in shares of KB Home by 9.7% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 9,097 shares of the construction company’s stock valued at $645,000 after purchasing an additional 804 shares during the period. Diversified Trust Co grew its position in shares of KB Home by 6.1% in the 1st quarter. Diversified Trust Co now owns 9,556 shares of the construction company’s stock valued at $677,000 after purchasing an additional 550 shares during the period. Wealth Enhancement Advisory Services LLC grew its position in shares of KB Home by 19.8% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 22,989 shares of the construction company’s stock valued at $1,629,000 after purchasing an additional 3,802 shares during the period. Wealthcare Advisory Partners LLC grew its position in shares of KB Home by 2.1% in the 1st 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 period. Finally, Miller Howard Investments Inc. NY acquired a new position in shares of KB Home in the 1st quarter valued at approximately $422,000. 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.