KB Home (KBH) stock expected to decline by -29.66%: What’s driving the pessimism?

A share price of KB Home [KBH] is currently trading at $74.34, up 5.37%. An important factor to consider is whether the stock is rising or falling in short-term value. The KBH shares have gain 7.16% over the last week, with a monthly amount glided 20.23%, and seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

KB Home [NYSE: KBH] stock has seen the most recent analyst activity on January 11, 2024, when Seaport Research Partners downgraded its rating to a Neutral. Previously, Deutsche Bank downgraded its rating to Sell on December 08, 2023, and dropped its price target to $46. On November 20, 2023, downgrade downgraded it’s rating to Neutral. Seaport Research Partners upgraded its rating to a Buy but stick to its price target of $58 on November 02, 2023. Wells Fargo initiated its recommendation with a Equal Weight and recommended $49 as its price target on October 17, 2023. Goldman downgraded its rating to Neutral for this stock on October 16, 2023, and downed its price target to $48. In a note dated July 14, 2023, Raymond James upgraded an Outperform rating on this stock but restated the target price of $61.

KB Home experienced fluctuations in its stock price throughout the past year between $42.11 and $72.00. Currently, Wall Street analysts expect the stock to reach $52.29 within the next 12 months. KB Home [NYSE: KBH] shares were valued at $74.34 at the most recent close of the market. An investor can expect a potential drop of -29.66% based on the average KBH price forecast.

Analyzing the KBH fundamentals

Trailing Twelve Months sales for KB Home [NYSE:KBH] were 6.49B which represents 6.03% growth. Gross Profit Margin for this corporation currently stands at 0.42% with Operating Profit Margin at 0.11%, Pretax Profit Margin comes in at 0.11%, and Net Profit Margin reading is 0.09%. To continue investigating profitability, this company’s Return on Assets is posted at 0.09, Equity is 0.16 and Total Capital is 0.13. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of0.44.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 72.76 points at the first support level, and at 71.18 for the second support level. However, for the 1st resistance point, the stock is sitting at 75.29, and for the 2nd resistance point, it is at 76.23.

Ratios To Look Out For

To put it in perspective, the Current Ratio for KB Home [NYSE:KBH] is 6.03. On the other hand, the Quick Ratio is 0.99, and the Cash Ratio is 0.64. Considering the valuation of this stock, the price to sales ratio is 0.87, the price to book ratio is 1.45 and price to earnings (TTM) ratio is 10.12.

Transactions by insiders

Recent insider trading involved PRAW ALBERT Z, EVP, Real Estate & Bus. Dev., that happened on May 10 ’24 when 22160.0 shares were sold. Director, Gilligan Thomas W. completed a deal on May 09 ’24 to sell 3914.0 shares. Meanwhile, EVP & Chief Financial Officer Kaminski Jeff sold 38386.0 shares on Apr 09 ’24.

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