On the upside, KB Home (NYSE:KBH) will test short term resistance at around $22.02. On a downside, the share price is likely to find some support, which begins at $20.38. The failure to get near-term support could push it to $19.77. Its 50 day simple moving average (SMA 50) price is $20.25 and its 200-day simple moving average (SMA 200) price is $24.12. The company’s stock currently has a total float of 77.6M shares. Its weekly volatility is hovering around 5.69% and felt 5.02% volatility in price over a month.
KBH stock has been range bound between the range of $20.79 and $20.79 during the whole day. The stock finished Thursday at $21. The -4.46% downtrend forced its market value to reach at $1.78B. The price went up as high as $20.79 before retreating. Trading activity significantly improved as the volume at ready counter increased to 4,818,569 shares versus 1,847,590 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,362,986 shares. The stock is now 24.85% above against its bear-market low of $16.82 on November 15, 2018. It has retreated -84.76% since it’s 52-week high of $38.8 reached in January. Now the market price is down -38.6% on the year and up 9.95% YTD.
Separately, it has been reported that multiple insider activity took place at KB Home (KBH). President and CEO Mezger Jeffrey T sold 272,818 shares for $761,287 in transaction occurred on 2018/08/16. After making this transaction, the President and CEO owns a direct stake of 6,381,213 shares, worth $15,987,027, as per the last closing price. On 2018/08/10 Mezger Jeffrey T, President and CEO at KBH, dumped 125,000 shares at an average price of $24.12 per share. The selling total is valued at $15,987,027.
SVP, Human Resources, Norton Thomas F had divested 47,179 shares for $61,039 through a trade on 2018/02/13. Following this activity, the insider holds 1,430,467 shares worth $1,281,819 as of recent close. Wall Street’s most bullish KB Home (NYSE:KBH) analysts are predicting the share price to blow past $30 per share during the next 12 months. The current median share price forecast by them is $23, suggesting that the stock could increase 9.52% in that time frame. The average price target of $22.88 calls for a nearly 8.95% increase in the stock price.
It had seen a negative analyst call from BofA/Merrill, which downgraded the stock from Buy to Neutral on November 15. Analysts at Credit Suisse, shed their positive views on October 17 by lowering it fromNeutral to Underperform. The stock won favor of Evercore ISI analysts who expressed their confidence in it using an upgrade from Underperform to In-line on October 01.
When looking at valuations, KB Home (KBH) has a cheap P/E of 7.47x as compared to industry average of 12.35x. Moreover, it trades for 7.17 times the next 12 months of expected earnings. Also, it is trading at rather inexpensive levels at just over 0.92x price/book and 0.39x price/sales. KBH’s ROE is 0.1%, which is also considerably worse than the industry’s ROE of 15.56%.
KBH last reported earnings on January 09, 2019 when it released Nov-18 results that exceeded expectations. The company raked in $0.96 per share, -69.03% change on the same period last year. That was better than consensus for $0.93. Revenue for the recent quarter stood at $1.35 billion, down -4% on last year and below the $1.35 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $823.06 million to $872 million, which should be compared with $927.46 million generated last year. EPS is seen in a range of $0.23 to $0.35, against the $0.36 reported a year ago.