Argus Research analyst Chris Graja has maintained their neutral stance on KBH stock, giving a Hold rating on April 15.
Chris Graja’s rating is based on a comprehensive analysis of KB Home’s financial performance and market strategy. KBH has displayed a solid performance, with a 21% increase in earnings per share (EPS) in the first quarter of fiscal year 2024, surpassing expectations. The company also demonstrated revenue growth, and in response to these positive results, Graja has revised the full-year EPS estimates upwards for both FY24 and FY25. Despite these adjustments and KBH’s proactive measures such as increasing dividends and authorizing a new $1 billion share repurchase program, Graja maintains a Hold rating, indicating that while the company is performing well, it may not significantly outperform the broader market.
Graja’s Hold rating also considers KB Home’s strategic positioning and demographic targeting. The company is focusing on markets that are expected to see economic and population growth, and it aims to attract Millennial and Gen Z buyers who are anticipated to be key drivers in the housing market over the next decade. KB Home’s efforts to maximize profit per home through customization and efficiency improvements, as well as its provision of affordable housing options, are notable. Yet, the Hold rating suggests that while these strategies are sound, they may not lead to outperformance relative to market expectations within the analyzed time frame.
In another report released on April 15, Wells Fargo also maintained a Hold rating on the stock with a $70.00 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KBH in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
KB Home (KBH) Company Description:
KB Home engages in selling and building a variety of new homes. It builds various types of homes, including attached and detached single-family homes, townhomes and condominiums. It operates through the following segments: West Coast, Southwest, Central and Southeast. It offer homes in development communities, at urban in-fill locations and as part of mixed-use projects. The company was founded in 1957 and is headquartered in Los Angeles, CA.
Read More on KBH:
