KB Home (NYSE:KBH) to Issue Quarterly Dividend of $0.25

KB Home (NYSE:KBH) announced a quarterly dividend on Thursday, April 18th, Wall Street Journal reports. Stockholders of record on Thursday, May 9th will be paid a dividend of 0.25 per share by the construction company on Thursday, May 23rd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.43%. The ex-dividend date is Wednesday, May 8th. This is an increase from KB Home’s previous quarterly dividend of $0.20.

KB Home has raised its dividend payment by an average of 18.6% annually over the last three years and has raised its dividend annually for the last 2 consecutive years. KB Home has a dividend payout ratio of 12.0% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect KB Home to earn $8.72 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 11.5%.

KB Home Stock Performance

NYSE:KBH opened at $70.04 on Tuesday. KB Home has a 52 week low of $42.11 and a 52 week high of $72.00. The firm’s 50-day simple moving average is $66.72 and its 200 day simple moving average is $60.41. The firm has a market cap of $5.31 billion, a price-to-earnings ratio of 9.53, a P/E/G ratio of 0.78 and a beta of 1.74.

KB Home (NYSE:KBH) last released its quarterly earnings results on Wednesday, March 20th. The construction company reported $1.76 earnings per share for the quarter, beating analysts’ consensus estimates of $1.57 by $0.19. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.46 billion. KB Home had a net margin of 9.29% and a return on equity of 15.78%. The firm’s quarterly revenue was up 6.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.45 earnings per share. Sell-side analysts anticipate that KB Home will post 8.01 EPS for the current year.

Wall Street Analyst Weigh In

KBH has been the topic of several analyst reports. Wedbush increased their target price on KB Home from $60.00 to $64.00 and gave the stock a “neutral” rating in a report on Thursday, March 21st. Evercore ISI dropped their target price on shares of KB Home from $82.00 to $78.00 and set an “outperform” rating for the company in a research report on Thursday, March 21st. Raymond James increased their price target on shares of KB Home from $61.00 to $70.00 and gave the stock an “outperform” rating in a research report on Thursday, January 18th. JPMorgan Chase & Co. boosted their price objective on shares of KB Home from $68.50 to $70.50 and gave the company a “neutral” rating in a research report on Wednesday, March 27th. Finally, UBS Group upped their target price on KB Home from $82.00 to $87.00 and gave the stock a “buy” rating in a research note on Thursday, March 21st. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $66.11.

Insider Activity at KB Home

In other news, CFO Jeff Kaminski sold 38,386 shares of KB Home stock in a transaction dated Tuesday, April 9th. The stock was sold at an average price of $66.56, for a total transaction of $2,554,972.16. Following the sale, the chief financial officer now directly owns 34,473 shares of the company’s stock, valued at $2,294,522.88. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 3.52% of the stock is currently owned by company insiders.

KB Home Company Profile

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.