Is KB Home (NYSE:KBH) Now a Sell? Why did JP Morgan Downgrade The Stock?

December 20, 2017 - By Marry Poplack

 Is KB Home (NYSE:KBH) Now a Sell? Why did JP Morgan Downgrade The Stock?

Investors sentiment increased to 1.55 in 2017 Q2. Its up 0.60, from 0.95 in 2017Q1. It improved, as 21 investors sold KB Home shares while 55 reduced holdings. 43 funds opened positions while 75 raised stakes. 83.63 million shares or 0.19% more from 83.47 million shares in 2017Q1 were reported.

Proshare Limited Liability Co reported 0% in KB Home (NYSE:KBH). Jane Street Grp Inc Limited Liability Corporation has 0% invested in KB Home (NYSE:KBH). Ls Invest Advsr Ltd Limited Liability Company owns 6,511 shares. Morgan Stanley has invested 0.01% of its portfolio in KB Home (NYSE:KBH). Citigroup holds 267,053 shares or 0.01% of its portfolio. Stevens First Principles Investment has invested 0.11% in KB Home (NYSE:KBH). 362,697 were accumulated by Principal Grp Incorporated. 77,920 are owned by First Trust Advisors Ltd Partnership. Donald Smith Communications, a New York-based fund reported 6.64 million shares. Commerzbank Aktiengesellschaft Fi invested 0.01% in KB Home (NYSE:KBH). Signalpoint Asset Mgmt Limited Company has invested 0.25% of its portfolio in KB Home (NYSE:KBH). Whittier Trust reported 10,761 shares or 0.01% of all its holdings. State Of Tennessee Treasury Department reported 50,000 shares. Cornerstone Cap Hldg Lc owns 38,300 shares for 0.01% of their portfolio. Nationwide Fund Advsr holds 0.03% of its portfolio in KB Home (NYSE:KBH) for 336,780 shares.

Since August 9, 2017, it had 0 buys, and 4 selling transactions for $15.68 million activity. The insider MEZGER JEFFREY T sold 400,000 shares worth $9.13M. On Monday, October 9 PRAW ALBERT Z sold $3.88 million worth of KB Home (NYSE:KBH) or 150,000 shares. Woram Brian J had sold 49,529 shares worth $1.34M on Thursday, October 12.

KB Home (NYSE:KBH) Receives a Downgrade

In a note shared with investors and clients on Tuesday morning, JP Morgan has decided to downgraded rating on KB Home (NYSE:KBH) shares to a “Underweight”. KBH’s prior rating was a “Neutral”.

Investors sentiment increased to 1.55 in 2017 Q2. Its up 0.60, from 0.95 in 2017Q1. It improved, as 21 investors sold KB Home shares while 55 reduced holdings. 43 funds opened positions while 75 raised stakes. 83.63 million shares or 0.19% more from 83.47 million shares in 2017Q1 were reported.

Proshare Limited Liability Co reported 0% in KB Home (NYSE:KBH). Jane Street Grp Inc Limited Liability Corporation has 0% invested in KB Home (NYSE:KBH). Ls Invest Advsr Ltd Limited Liability Company owns 6,511 shares. Morgan Stanley has invested 0.01% of its portfolio in KB Home (NYSE:KBH). Citigroup holds 267,053 shares or 0.01% of its portfolio. Stevens First Principles Investment has invested 0.11% in KB Home (NYSE:KBH). 362,697 were accumulated by Principal Grp Incorporated. 77,920 are owned by First Trust Advisors Ltd Partnership. Donald Smith Communications, a New York-based fund reported 6.64 million shares. Commerzbank Aktiengesellschaft Fi invested 0.01% in KB Home (NYSE:KBH). Signalpoint Asset Mgmt Limited Company has invested 0.25% of its portfolio in KB Home (NYSE:KBH). Whittier Trust reported 10,761 shares or 0.01% of all its holdings. State Of Tennessee Treasury Department reported 50,000 shares. Cornerstone Cap Hldg Lc owns 38,300 shares for 0.01% of their portfolio. Nationwide Fund Advsr holds 0.03% of its portfolio in KB Home (NYSE:KBH) for 336,780 shares.

Since August 9, 2017, it had 0 buys, and 4 selling transactions for $15.68 million activity. The insider MEZGER JEFFREY T sold 400,000 shares worth $9.13M. On Monday, October 9 PRAW ALBERT Z sold $3.88 million worth of KB Home (NYSE:KBH) or 150,000 shares. Woram Brian J had sold 49,529 shares worth $1.34M on Thursday, October 12.

KB Home (NYSE:KBH) Ratings Coverage

Among 26 analysts covering KB Home (NYSE:KBH), 0 have Buy rating, 7 Sell and 19 Hold. Therefore 0 are positive. KB Home has $31.0 highest and $11 lowest target. $19.81’s average target is -35.45% below currents $30.69 stock price. KB Home had 60 analyst reports since September 4, 2015 according to SRatingsIntel. KeyBanc Capital Markets maintained KB Home (NYSE:KBH) on Tuesday, October 31 with “Hold” rating. The firm has “Hold” rating by Keefe Bruyette & Woods given on Friday, September 29. As per Monday, July 18, the company rating was downgraded by Buckingham Research. As per Tuesday, June 27, the company rating was upgraded by M Partners. The stock has “Neutral” rating by Buckingham Research on Tuesday, February 28. FBR Capital maintained the shares of KBH in report on Friday, September 25 with “Mkt Perform” rating. As per Thursday, March 24, the company rating was maintained by Barclays Capital. As per Friday, September 29, the company rating was upgraded by Mizuho. The company was initiated on Tuesday, September 20 by Wedbush. The firm has “Buy” rating by Buckingham Research given on Monday, September 19.

The stock decreased 3.09% or $0.98 during the last trading session, reaching $30.69. About 2.11M shares traded. KB Home (NYSE:KBH) has risen 69.35% since December 20, 2016 and is uptrending. It has outperformed by 52.65% the S&P500.

Analysts await KB Home (NYSE:KBH) to report earnings on January, 10 after the close. They expect $0.77 earnings per share, up 92.50 % or $0.37 from last year’s $0.4 per share. KBH’s profit will be $66.61M for 9.96 P/E if the $0.77 EPS becomes a reality. After $0.51 actual earnings per share reported by KB Home for the previous quarter, Wall Street now forecasts 50.98 % EPS growth.

KB Home operates as a homebuilding company in the United States. The company has market cap of $2.66 billion. It manufactures and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, move-up, and active adult homebuyers. It has a 21.98 P/E ratio. The firm also provides property and casualty insurance, as well as earthquake, flood, and personal property insurance to its homebuyers; title services; and mortgage banking services, including residential mortgage loan originations to its homebuyers.

More notable recent KB Home (NYSE:KBH) news were published by: Businesswire.com which released: “KB Home Introduces Highmark at IronRidge in Lake Forest” on December 19, 2017, also Jaxdailyrecord.com with their article: “KB Home to build Price Park in Mandarin” published on December 15, 2017, Finance.Yahoo.com published: “The Zacks Analyst Blog Highlights: DR Horton, Lennar, Toll Brothers, KB Home …” on November 24, 2017. More interesting news about KB Home (NYSE:KBH) were released by: Businesswire.com and their article: “KB Home Announces the Grand Opening of Alure in the Temecula Valley” published on December 14, 2017 as well as Businesswire.com‘s news article titled: “KB Home Announces the Grand Opening of Daybreak in Moreno Valley” with publication date: December 15, 2017.

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