Donald Smith & CO. Inc. Invests $108.65 Million in KB Home $KBH

Donald Smith & CO. Inc. bought a new position in KB Home (NYSE:KBH) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 1,735,927 shares of the construction company’s stock, valued at approximately $108,652,000. KB Home accounts for approximately 1.9% of Donald Smith & CO. Inc.’s holdings, making the stock its 25th biggest position.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in KBH. Eastern Bank purchased a new stake in KB Home during the second quarter valued at about $26,000. Bessemer Group Inc. raised its holdings in shares of KB Home by 80.0% in the 1st quarter. Bessemer Group Inc. now owns 495 shares of the construction company’s stock worth $26,000 after purchasing an additional 220 shares during the period. First Horizon Corp raised its holdings in shares of KB Home by 178.9% in the 4th quarter. First Horizon Corp now owns 502 shares of the construction company’s stock worth $28,000 after purchasing an additional 322 shares during the period. Parkside Financial Bank & Trust lifted its stake in shares of KB Home by 73.1% in the 4th quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company’s stock valued at $33,000 after purchasing an additional 250 shares in the last quarter. Finally, Fulcrum Asset Management LLP acquired a new position in shares of KB Home in the 3rd quarter valued at about $36,000. Institutional investors and hedge funds own 96.09% of the company’s stock.

Insider Activity at KB Home

In other KB Home news, EVP Albert Z. Praw sold 22,015 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total value of $1,292,280.50. Following the completion of the sale, the executive vice president owned 104,062 shares of the company’s stock, valued at $6,108,439.40. This trade represents a 17.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Arthur Reginald Collins sold 4,000 shares of KB Home stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total transaction of $227,840.00. Following the sale, the director owned 9,157 shares in the company, valued at $521,582.72. This represents a 30.40% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.69% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on KBH shares. Citizens Jmp reiterated a “market outperform” rating and set a $77.00 target price on shares of KB Home in a report on Wednesday, June 24th. Wells Fargo & Company raised their price target on shares of KB Home from $50.00 to $52.00 and gave the company an “underweight” rating in a report on Wednesday, June 24th. Barclays lifted their price target on shares of KB Home from $56.00 to $57.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Zacks Research upgraded shares of KB Home from a “strong sell” rating to a “hold” rating in a research note on Thursday, June 25th. Finally, UBS Group increased their price objective on shares of KB Home from $63.00 to $66.00 and gave the stock a “buy” rating in a research report on Wednesday, June 24th. Four investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, KB Home currently has a consensus rating of “Hold” and a consensus target price of $60.17.

KB Home Price Performance

Shares of KBH opened at $55.45 on Friday. KB Home has a 12 month low of $44.03 and a 12 month high of $68.71. The stock’s 50-day moving average is $56.86 and its two-hundred day moving average is $55.29. The stock has a market cap of $3.40 billion, a PE ratio of 19.32, a P/E/G ratio of 9.03 and a beta of 1.35.

KB Home (NYSE:KBH) last posted its earnings results on Tuesday, June 23rd. The construction company reported $0.43 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.01). The company had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.09 billion. KB Home had a net margin of 4.94% and a return on equity of 7.67%. KB Home’s quarterly revenue was down 27.3% compared to the same quarter last year. During the same quarter last year, the business posted $1.50 EPS. On average, research analysts anticipate that KB Home will post 3.3 earnings per share for the current year.

KB Home Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date was Thursday, August 6th. KB Home’s dividend payout ratio is currently 34.84%.

KB Home Profile

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.