KB Home (NYSE:KBH) Reaches New 52-Week Low – Should You Sell?

KB Home (NYSE:KBH) shares hit a new 52-week low during trading on Tuesday . The company traded as low as $48.58 and last traded at $48.8520, with a volume of 396936 shares changing hands. The stock had previously closed at $51.34.

Analyst Upgrades and Downgrades

KBH has been the subject of a number of research reports. Barclays dropped their price target on KB Home from $62.00 to $56.00 and set an “overweight” rating for the company in a research note on Wednesday, March 25th. Keefe, Bruyette & Woods dropped their price target on KB Home from $67.00 to $62.00 and set a “market perform” rating for the company in a research note on Tuesday, December 23rd. The Goldman Sachs Group dropped their price target on KB Home from $65.00 to $56.00 and set a “neutral” rating for the company in a research note on Wednesday, March 25th. Raymond James Financial cut KB Home from an “outperform” rating to a “market perform” rating in a research note on Wednesday, December 24th. Finally, Citizens Jmp initiated coverage on KB Home in a research note on Tuesday, March 24th. They issued an “outperform” rating and a $77.00 price target for the company. Three analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, KB Home presently has a consensus rating of “Hold” and an average price target of $59.50.

KB Home Stock Performance

The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.20 and a current ratio of 2.20. The stock has a fifty day simple moving average of $58.05 and a two-hundred day simple moving average of $60.14. The stock has a market capitalization of $3.05 billion, a price-to-earnings ratio of 12.43, a P/E/G ratio of 7.82 and a beta of 1.50.

KB Home (NYSE:KBH) last issued its quarterly earnings results on Tuesday, March 24th. The construction company reported $0.52 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.52. KB Home had a return on equity of 9.63% and a net margin of 5.96%.The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.10 billion. During the same period last year, the business posted $1.49 EPS. The business’s revenue was down 22.6% compared to the same quarter last year. Analysts forecast that KB Home will post 8.42 earnings per share for the current fiscal year.

KB Home Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Stockholders of record on Thursday, February 5th were paid a $0.25 dividend. The ex-dividend date was Thursday, February 5th. This represents a $1.00 annualized dividend and a dividend yield of 2.0%. KB Home’s dividend payout ratio (DPR) is currently 25.38%.

Institutional Trading of KB Home

Several large investors have recently made changes to their positions in the company. State Street Corp grew its stake in shares of KB Home by 3.1% in the 2nd quarter. State Street Corp now owns 3,503,159 shares of the construction company’s stock valued at $185,562,000 after buying an additional 106,926 shares during the period. Freestone Grove Partners LP acquired a new stake in shares of KB Home in the 3rd quarter valued at about $111,050,000. Invesco Ltd. grew its stake in shares of KB Home by 1.4% in the 3rd quarter. Invesco Ltd. now owns 1,400,892 shares of the construction company’s stock valued at $89,153,000 after buying an additional 19,330 shares during the period. Deprince Race & Zollo Inc. grew its stake in shares of KB Home by 13.1% in the 4th quarter. Deprince Race & Zollo Inc. now owns 1,054,280 shares of the construction company’s stock valued at $59,472,000 after buying an additional 122,457 shares during the period. Finally, Bank of America Corp DE grew its stake in shares of KB Home by 36.4% in the 3rd quarter. Bank of America Corp DE now owns 1,033,287 shares of the construction company’s stock valued at $65,758,000 after buying an additional 275,965 shares during the period. 96.09% of the stock is currently owned by institutional investors and hedge funds.

About KB Home

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation’s largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.