A recent SEC filing reveals that Arthur Collins, a director at KB Home, has executed a sale of 5,500 shares of the company’s stock. This transaction is part of a pattern of insider sales at KB Home, with a total of 10 insider sells and no insider buys over the past year.
KB Home, a prominent homebuilding company in the United States, specializes in constructing and selling a wide range of residential properties, including attached and detached single-family homes, townhomes, and condominiums. Additionally, the company offers insurance and mortgage banking services.
The sale took place when KB Home shares were trading at $60.12, resulting in a market capitalization of $4.58 billion. The stock’s price-earnings ratio stands at 8.58, which is below both the industry median and the historical median ratio for the company.
In terms of valuation, the GuruFocus Value estimates the stock at $49.06, while the actual share price is $60.12. Consequently, KB Home is considered modestly overvalued, with a price-to-GF-Value ratio of 1.23.
The GF Value is a proprietary metric that takes into account various trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow. It also incorporates the company’s historical returns and growth, as well as future performance estimates by Morningstar analysts.
Although the recent insider sell by Director Arthur Collins does not serve as specific investment guidance, it does provide additional data points for investors to consider in relation to their positions in KB Home.
It is crucial to note that this article aims to offer general insights and does not constitute tailored financial advice. The analysis is based on historical data and analyst projections, employing an impartial methodology. Individual investment objectives and financial circumstances are not taken into consideration. The objective is to provide long-term, data-driven analysis.
Please bear in mind that this analysis may not encompass the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks discussed in this article.
FAQ:
1. Who executed a sale of KB Home stock?
– Arthur Collins, a director at KB Home, executed a sale of 5,500 shares of the company’s stock.
2. How many insider sells and insider buys have occurred at KB Home over the past year?
– There have been 10 insider sells and no insider buys at KB Home over the past year.
3. What does KB Home specialize in?
– KB Home is a prominent homebuilding company in the United States that specializes in constructing and selling a wide range of residential properties, including single-family homes, townhomes, and condominiums. They also offer insurance and mortgage banking services.
4. What was the market capitalization of KB Home after the sale?
– The sale took place when KB Home shares were trading at $60.12, resulting in a market capitalization of $4.58 billion.
5. What is the price-earnings ratio of KB Home?
– The stock’s price-earnings ratio stands at 8.58, which is below both the industry median and the historical median ratio for the company.
6. How does the GuruFocus Value estimate compare to the actual share price of KB Home?
– The GuruFocus Value estimates the stock at $49.06, while the actual share price is $60.12. This suggests that KB Home is considered modestly overvalued, with a price-to-GF-Value ratio of 1.23.
Definitions:
– SEC filing: A filing submitted to the U.S. Securities and Exchange Commission (SEC) that provides information about a company’s financial condition and operations, typically required for regulatory compliance.
– Insider sells/buys: Refers to transactions involving the buying or selling of a company’s stock by individuals who have access to non-public information about the company.
– Market capitalization: The total value of a company’s outstanding shares of stock, calculated by multiplying the share price by the number of shares outstanding.
– Price-earnings ratio: A financial metric calculated by dividing a company’s share price by its earnings per share (EPS), which provides insights into the price investors are willing to pay for each dollar of earnings.
– GF Value: A proprietary metric used by GuruFocus that estimates the intrinsic value of a stock by considering various trading multiples and incorporating historical returns and growth, as well as future performance estimates.
– Price-to-GF-Value ratio: The ratio between a stock’s current price and its estimated GuruFocus Value, indicating whether a stock is overvalued or undervalued.