KB Home (NYSE: KBH) has seen a rise in its stock price by 1.33 in relation to its previous close of 60.92. However, the company has experienced a -4.75% decline in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-18 that KB Home (KBH) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
Is It Worth Investing in KB Home (NYSE: KBH) Right Now?
The price-to-earnings ratio for KB Home (NYSE: KBH) is above average at 8.40x, Company’s 36-month beta value is 1.75.Analysts have differing opinions on the stock, with 0 analysts rating it as a “buy,” 1 as “overweight,” 16 as “hold,” and 4 as “sell.”
The public float for KBH is 73.36M, and currently, short sellers hold a 6.38% ratio of that floaft. The average trading volume of KBH on April 18, 2024 was 1.13M shares.
KBH’s Market Performance
KBH’s stock has seen a -4.75% decrease for the week, with a -9.53% drop in the past month and a 1.00% gain in the past quarter. The volatility ratio for the week is 2.28%, and the volatility levels for the past 30 days are at 2.58% for KB Home The simple moving average for the past 20 days is -7.56% for KBH’s stock, with a 10.39% simple moving average for the past 200 days.
Analysts’ Opinion of KBH
Deutsche Bank, on the other hand, stated in their research note that they expect to see KBH reach a price target of $46, previously predicting the price at $55. The rating they have provided for KBH stocks is “Sell” according to the report published on December 08th, 2023.
KBH Trading at -6.01% from the 50-Day Moving Average
After a stumble in the market that brought KBH to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -14.26% of loss for the given period.
Volatility was left at 2.58%, however, over the last 30 days, the volatility rate increased by 2.28%, as shares sank -11.66% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.89% upper at present.
During the last 5 trading sessions, KBH fell by -4.74%, which changed the moving average for the period of 200-days by +19.47% in comparison to the 20-day moving average, which settled at $66.37. In addition, KB Home saw -1.17% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at KBH starting from Kaminski Jeff, who sale 38,386 shares at the price of $66.56 back on Apr 09 ’24. After this action, Kaminski Jeff now owns 34,473 shares of KB Home, valued at $2,555,150 using the latest closing price.
PRAW ALBERT Z, the EVP, Real Estate & Bus. Dev. of KB Home, sale 32,528 shares at $60.76 during a trade that took place back on Feb 14 ’24, which means that PRAW ALBERT Z is holding 135,512 shares at $1,976,401 based on the most recent closing price.
Stock Fundamentals for KBH
Current profitability levels for the company are sitting at:
- 0.11 for the present operating margin
- 0.42 for the gross margin
The net margin for KB Home stands at 0.09. The total capital return value is set at 0.13. Equity return is now at value 15.80, with 9.07 for asset returns.
Based on KB Home (KBH), the company’s capital structure generated 0.3 points at debt to capital in total, while cash flow to debt ratio is standing at 0.6. The debt to equity ratio resting at 0.44. The interest coverage ratio of the stock is 4.05.
Currently, EBITDA for the company is 778.95 million with net debt to EBITDA at 1.38. When we switch over and look at the enterprise to sales, we see a ratio of 0.88. The receivables turnover for the company is 18.18for trailing twelve months and the total asset turnover is 0.97. The liquidity ratio also appears to be rather interesting for investors as it stands at 6.03.
Conclusion
In a nutshell, KB Home (KBH) has experienced a mixed performance in recent times. The stock has received mixed “sell” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
