The stock of KB Home (NYSE:KBH) increased by $0.12 on Tuesday to finish at $48.41, up 0.25 percent. The last five days have seen an average of 1,736,980 shares of common stock traded. 37 times new highs were reached in the current year, with a gain of $16.56. The average number of shares traded over the last 20 days was 1,168,470, while the average volume over the last 50 days totaled 1,354,178.
KBH stock dropped -1.37% since last month. On 08/25/23, the company’s shares reached a one-month low of $46.62. The stock touched a high of $55.37 on 07/20/23, after rallying from a low of $25.31 in 52 weeks. The price of KBH stock has risen by 51.99% or $16.56 this year, reaching a new high 37 times. Still, the stock price is down -12.57% from the 52-week high.
Insider Transactions
KBH stock investors should be aware that KB Home (KBH) stock had its last reported insider trading activity 34 days ago on Aug 17. On Aug 17, SVP & Chief Accounting Officer HOLLINGER WILLIAM R sold 4,529 shares at $50.65 each. This transaction resulted in the insider making $229,394. On Aug 16, Woram Brian J sold 40,000 shares at a price of US$52.80. After the transaction, the insider now owns 158,654 shares. Director LORA MELISSA had earlier sold 9,649 shares on Aug 16 for $53.19 a share. The transaction was completed for $513,230.
Valuation Metrics
KB Home (KBH) has a trailing price-to-earnings (P/E) ratio of 5.54. Beta for the stock is 1.68. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.59, the price-to-book (PB) ratio of 1.05, and the price-to-cash flow ratio of 3.82.
Company paid $0.20 per share in dividends, an increase of 33.33% from $0.15 last year. A $0.05 dividend increase was reported on Thursday July 13 2023.
Financial Health
The company’s long-term debt to equity ratio for the quarter ending May 30 is 0.45, and the total debt to equity ratio is 0.45. As far as profitability goes, gross margin for the trailing twelve months is 42.80% percent. KB Home’s EBITDA margin for the year ended May 30 was 15.75%, whereas its operating margin stood at 14.10% for the same period. Based on annual data, it had gross profit of $1.69 billion and revenue of $6.9 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. KBH’s return on assets (ROA) during the last 12 months has been 11.50%. There was a 14.50% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 20.70%.
Earnings Surprise
According to KB Home’s quarterly financial report for the quarter that ended May 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.77 billion, while revenues rose by 2.56% to $1.38 billion. It was predicted that KB Home’s quarterly earnings would be $1.94, but it ended up being $1.33, beating the consensus by 45.90%. EBITDA was $219.46 million for the quarter. At the end of KB Home’s most recent quarter ended May 30, its liabilities totaled 2.72 billion, while its total debt was $1.71 billion. Equity owned by shareholders amounts to $80.61 million.
Technical Picture
Here’s a quick look at KB Home’s (KBH) price momentum from a technical perspective. As of 19 September, the RSI 9-day stood at 41.70%, suggesting the stock is Neutral, with a 30.18% historical volatility rate.
The stochastic %K and %D were 22.96% and 31.70% respectively, while the average true range (ATR) was 1.49. Based on the 14-day stochastic reading of 27.67%, the RSI (14) reading is 42.96%. On the 9-day MACD Oscillator, the stock is at -1.25, and the 14-day reading is at -1.64.
Analyst Ratings
In its most recent analyst report, Raymond James raised its rating on KB Home (NYSE: KBH) to an Outperform. Prior to this, analysts firm rated the stock as a Mkt perform. Analysts have assigned KB Home (KBH) an Overweight rating. KBH is a stock that is recommended for selling by 1 brokerage firm, while 8 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 3 rates it overweight and 4 others recommend it as a buy.
What is KBH’s price target for the next 12 months?
The current consensus forecast for the stock is between $43.00 and $65.00, with a median target price of $61.00. In analyzing these forecasts, the average price target given by analysts for KB Home (KBH) is $58.17.
