KB Home (KBH)’s Stock Formed A Several Months Bearish Wedge Down Chart Pattern

May 16, 2018 - By Maria Brooks

KB Home (NYSE:KBH) Logo

Investors sentiment decreased to 1.06 in Q4 2017. Its down 0.75, from 1.81 in 2017Q3. It worsened, as 36 investors sold KB Home shares while 80 reduced holdings. 50 funds opened positions while 73 raised stakes. 81.24 million shares or 1.89% less from 82.80 million shares in 2017Q3 were reported.
California State Teachers Retirement Sys reported 134,052 shares stake. Credit Suisse Ag accumulated 201,449 shares or 0.01% of the stock. Macquarie Grp Inc Ltd holds 0% or 71,900 shares in its portfolio. Sawgrass Asset Management Ltd Limited Liability Company holds 0.05% or 36,040 shares. New York State Common Retirement Fund invested in 0.01% or 169,185 shares. Braun Stacey Inc holds 627,995 shares. 20,032 were reported by Amundi Pioneer Asset Management. Sg Americas Ltd Co holds 29,402 shares or 0.01% of its portfolio. Legal & General Grp Inc Public Limited Company owns 0% invested in KB Home (NYSE:KBH) for 80,319 shares. Amer Century invested in 308,756 shares. Grantham Mayo Van Otterloo Limited Company invested 0% of its portfolio in KB Home (NYSE:KBH). One Trading L P has 46,400 shares for 0.01% of their portfolio. Product Partners Lc invested in 836,855 shares. Barclays Public Limited Liability Company has invested 0% in KB Home (NYSE:KBH). Smithfield Tru Co has invested 0% of its portfolio in KB Home (NYSE:KBH).

Since January 30, 2018, it had 0 insider purchases, and 2 insider sales for $5.50 million activity. Kaminski Jeff sold $4.07M worth of stock.

The stock of KB Home (KBH) formed a down wedge with $23.65 target or 7.00 % below today’s $25.43 share price. The 6 months wedge indicates high risk for the $2.23 billion company. If the $23.65 price target is reached, the company will be worth $155.75M less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock increased 0.91% or $0.23 during the last trading session, reaching $25.43. About 1.67 million shares traded. KB Home (NYSE:KBH) has risen 45.30% since May 16, 2017 and is uptrending. It has outperformed by 33.75% the S&P500.

Analysts await KB Home (NYSE:KBH) to report earnings on June, 26. They expect $0.49 EPS, up 48.48 % or $0.16 from last year’s $0.33 per share. KBH’s profit will be $42.87 million for 12.97 P/E if the $0.49 EPS becomes a reality. After $0.40 actual EPS reported by KB Home for the previous quarter, Wall Street now forecasts 22.50 % EPS growth.

KB Home (NYSE:KBH) Ratings Coverage

Among 13 analysts covering KB Home (NYSE:KBH), 1 have Buy rating, 4 Sell and 8 Hold. Therefore 8% are positive. KB Home had 19 analyst reports since December 19, 2017 according to SRatingsIntel. As per Friday, January 26, the company rating was upgraded by Buckingham Research. On Wednesday, March 21 the stock rating was maintained by Keefe Bruyette & Woods with “Hold”. On Friday, December 29 the stock rating was maintained by Wedbush with “Hold”. Keefe Bruyette & Woods maintained the stock with “Hold” rating in Thursday, December 21 report. The rating was upgraded by Wells Fargo to “Outperform” on Friday, March 23. JP Morgan downgraded the shares of KBH in report on Tuesday, December 19 to “Underweight” rating. The stock of KB Home (NYSE:KBH) has “Sell” rating given on Wednesday, January 17 by UBS. Keefe Bruyette & Woods maintained the stock with “Hold” rating in Thursday, January 11 report. The firm has “Underperform” rating by Buckingham Research given on Friday, January 12. On Monday, April 9 the stock rating was maintained by Deutsche Bank with “Hold”.

More important recent KB Home (NYSE:KBH) news were published by: Investorplace.com which released: “3 Sector ETFs & Stocks to Play April Inflation Data” on May 14, 2018, also Streetinsider.com published article titled: “California’s New Residential Solar Mandate to Benefit SunPower (SPWR) and First Solar (FSLR) over Sunrun (RUN …”, Benzinga.com published: “3 Stocks To Play California’s Solar Panel Mandate” on May 14, 2018. More interesting news about KB Home (NYSE:KBH) was released by: Businesswire.com and their article: “KB Home to Repay Senior Notes” with publication date: May 15, 2018.

KB Home operates as a homebuilding company in the United States. The company has market cap of $2.23 billion. It manufactures and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, move-up, and active adult homebuyers. It has a 25.46 P/E ratio. The firm also provides property and casualty insurance, as well as earthquake, flood, and personal property insurance to its homebuyers; title services; and mortgage banking services, including residential mortgage loan originations to its homebuyers.

KB Home (NYSE:KBH) Institutional Positions Chart

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