KB Home (NYSE:KBH) Relative Strength Index (RSI) is 41.04, with weekly volatility at 2.85% and ATR at 1.47. The KBH stock’s 52-week price range has touched low of $27.51 and a $52.48 high. Intraday shares traded counted 1.19 million, which was 11.71% higher than its 30-day average trading volume of 1.35M. Its shares traded higher over the last trading session, gaining 1.34% on 06/21/21. The shares fell to a low of $42.70 before closing at $43.05. KBH’s previous close was $42.48 while the outstanding shares total 91.72M. The firm has a beta of 1.82, a 12-month trailing P/E ratio of 12.26, and a growth ratio of 0.68.
Investors have identified the Residential Construction company KB Home as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.97 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
KB Home (KBH) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 4.94 billion total, with 2.68 billion as their total liabilities.
KBH were able to record -88.36 million as free cash flow during the 09/30/2021 quarter of the year, this saw their quarterly net cash flow reduce by -111.57 million. In cash movements, the company had a total of -79.27 million as operating cash flow.
Potential earnings growth for KB Home (KBH)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 09/30/2021 quarter of the year, KB Home recorded a total of 1.14 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 5.76% coming in sequential stages and their sales for the 09/30/2021 quarter reducing by -4.6%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 901.91 million trying to sell their products during the last quarter, with the result yielding a gross income of 239.83 million. This allows shareholders to hold on to 91.72M with the recently reported earning now reading 1.06 cents per share. This is a figure that compared to analyst’s prediction for their 09/30/2021 (1.02 cents a share).
Having a look at the company’s valuation, the company is expected to record 6.64 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on KBH sounds very interesting.
Is the stock of KBH attractive?
In related news, EVP & Chief Financial Officer, Kaminski Jeff sold 64,277 shares of the company’s stock in a transaction that recorded on Apr 22. The sale was performed at an average price of 47.16, for a total value of 3,031,447. As the sale deal closes, the SVP & Chief Accounting Officer, HOLLINGER WILLIAM R now sold 50,000 shares of the company’s stock, valued at 2,202,500. Also, EVP and General Counsel, Woram Brian J sold 76,000 shares of the company’s stock in a deal that was recorded on Feb 11. The shares were price at an average price of 44.92 per share, with a total market value of 3,413,655. Following this completion of acquisition, the EVP & Chief Financial Officer, Kaminski Jeff now holds 25,105 shares of the company’s stock, valued at 1,095,582. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.50%.
7 out of 13 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on KB Home. 0 analysts has assigned a Sell rating on the KBH stock. The 12-month mean consensus price target for the company’s shares has been set at $53.20.