Exploring KB Home (KBH) Investor Profile: Who’s Buying and Why?

Have you ever wondered who exactly is investing in KB Home (KBH), and more importantly, why? With KB Home operating in 49 markets and having built nearly 700,000 homes, understanding its investor profile can offer valuable insights. In the first quarter of 2025, the company repurchased 753,939 shares of its common stock at a cost of $50.0 million, or $66.32 per share, and as of February 28, 2025, had $650.0 million remaining under its current common stock repurchase authorization. Are these investors focused on long-term growth, or are they capitalizing on short-term market trends? Let’s delve into the details to uncover the motivations and strategies behind those investing in KBH.

KB Home (KBH) Who Invests in [Company Name] and Why?

Understanding the investor profile of KB Home (KBH) involves examining the various types of investors and their motivations. This insight is crucial for assessing market sentiment and potential stock performance. Here's a breakdown of the key investor types and their investment strategies:

Key Investor Types:

• Institutional Investors: These entities, including hedge funds, mutual funds, and pension funds, hold a significant percentage of KB Home's stock. As of April 2025, institutional investors held approximately 96.09% of KB Home's stock. Major institutional shareholders include:
  • BlackRock, Inc.: Holding approximately 10 million shares as of December 2024.
  • Vanguard Group Inc: Holding approximately 7.1 million shares as of December 2024.
  • FMR Llc: Holding approximately 4.7 million shares as of December 2024.
  • State Street Corporation: Holding approximately 3.6 million shares as of December 2024.
• Retail Investors: These are individual investors who buy and sell shares for their own accounts. While their collective holdings can be substantial, their individual impact on the stock price is generally less pronounced than that of institutional investors. Approximately 32.60% of the company's stock is owned by public companies and individual investors.
• Hedge Funds: These funds often employ sophisticated investment strategies, including short-term trading and leveraging, to maximize returns. Based on 13 tracked hedge funds, KB Home (KBH) holdings were increased by 72.6K shares last quarter.

Investment Motivations:

• Growth Prospects: Investors are attracted to KB Home due to its strategic emphasis on a balanced approach to build-to-order and speculative inventory, and a proactive and comprehensive land acquisition strategy amid rising costs positions the company for sustained growth and strengthening financial performance.
• Dividend Income: KB Home has a history of paying dividends, making it attractive to income-seeking investors. The company declared a quarterly cash dividend of $0.25 per share, payable on May 22, 2025. The annual dividend is $1.00 per share, with a yield of 1.98%.
• Market Position: KB Home is one of the largest and most trusted homebuilders in the United States, operating in 49 markets. The company's strategic planning and market adaptation, setting a positive tone for their 2025 outlook.

Investment Strategies:

• Long-Term Holding: Many institutional investors, such as mutual funds and pension funds, adopt a long-term holding strategy, based on KB Home's consistent financial performance and market position.
• Short-Term Trading: Hedge funds and other active traders may engage in short-term trading strategies to capitalize on price fluctuations.
• Value Investing: Value investors may be attracted to KB Home if they believe the stock is undervalued relative to its assets or earnings potential.

KB Home's financial performance in 2024 showed a revenue of $6.93 billion, an increase of 8.10% compared to the previous year's $6.41 billion. Earnings were $650.19 million, an increase of 10.97%. The company's fourth-quarter 2024 earnings surpassed Wall Street expectations, with earnings per share (EPS) of $2.52, exceeding the forecasted $2.47. Revenue for Q4 reached $2 billion, surpassing the $1.99 billion forecast.

The company's strategic initiatives, such as the Built-to-Order approach, also make the stock attractive. This approach reduces inventory risk, enhances efficiencies in construction and provides greater visibility as.

Despite these positive aspects, there are challenges. KB Home lowered its fiscal 2025 guidance, now expecting housing revenues to be in the $6.60-$7 billion range, down from the earlier estimate of $7.0 billion to $7.5 billion. The average selling price is anticipated to be $480,000 to $495,000, reduced from $488,000 to $498,000.

For more insights into KB Home's values, refer to Mission Statement, Vision, & Core Values of KB Home (KBH).

KB Home (KBH) Institutional Ownership and Major Shareholders of KB Home (KBH)

Institutional investors and major shareholders play a significant role in shaping a company's stock performance and influencing its strategic direction. Let's delve into the details of KB Home's institutional ownership, recent changes in ownership, and the overall impact of these large investors.

As of March 31, 2024, a total of 427 institutions held shares of KB Home. Here's a breakdown:

• Number of institutions holding shares: 427
• Total shares held by institutions: 62,243,283
• Percentage of institutional ownership: 75.70%

Here are some of the top institutional investors and their respective shareholdings in KB Home, according to recent data:

Changes in institutional ownership can provide valuable insights into the sentiment surrounding a stock. Recent activity shows the following trends:

• Increased positions: 121 institutions increased their holdings
• Decreased positions: 114 institutions reduced their holdings
• Held steady: 43 institutions maintained the same position
• New positions: 37 institutions initiated new positions
• Sold out completely: 29 institutions closed their positions entirely

The presence and actions of large institutional investors can significantly impact KB Home's stock price and overall strategy. Their investment decisions often reflect in-depth research and analysis, and their collective buying or selling activity can create momentum in the market. A high percentage of institutional ownership can lend stability to the stock, but it can also lead to increased volatility if these institutions decide to change their positions.

For further insights into KB Home's financial health, explore Breaking Down KB Home (KBH) Financial Health: Key Insights for Investors.

KB Home (KBH) Key Investors and Their Impact on KB Home (KBH)

Understanding the investor profile of KB Home (KBH) provides valuable insights into the company's stability, growth potential, and market sentiment. A diverse investor base can contribute to a more stable stock price, while the presence of institutional investors often signals confidence in the company's long-term prospects. Here's a detailed look at KB Home's key investors and their influence:

Notable Investors:

KB Home (KBH) has a mix of institutional, insider, and retail investors. Institutional investors hold a significant percentage of KB Home's stock. As of December 31, 2024, institutional investors held approximately 98.79% of KB Home's shares.

The largest shareholders include:

• BlackRock Inc.: Holds 10,053,142 shares, representing 14.01% of the company, valued at approximately $513.11 million.
• Vanguard Group Inc.: Holds 7,110,131 shares, representing 9.91% of the company, valued at approximately $362.90 million.
• FMR LLC: Holds 4,743,764 shares, representing 6.61% of the company, valued at approximately $242.12 million.
• State Street Corp: Holds 3,591,507 shares, representing 5.01% of the company, valued at approximately $183.31 million.
• Capital World Investors: Holds 2,957,918 shares, representing 4.12% of the company, valued at approximately $150.97 million.
• Dimensional Fund Advisors LP: Holds 2,523,646 shares, representing 3.52% of the company, valued at approximately $128.81 million.
• Invesco Ltd: Holds 2,396,967 shares, representing 3.34% of the company, valued at approximately $122.34 million.
• Fisher Asset Management LLC: Holds 2,281,315 shares, representing 3.18% of the company, valued at approximately $116.44 million.
• Macquarie Group Ltd: Holds 2,090,209 shares, representing 2.91% of the company, valued at approximately $106.68 million.

In addition to institutional investors, insiders also hold a portion of KB Home's stock. Bruce Karatz is the largest individual shareholder, owning 1,870,063 shares, which represents 2.61% of the company. These shares are valued at approximately $95.45 million.

Investor Influence:

The presence of large institutional investors can significantly impact KB Home's decisions and stock movements. These investors often have substantial resources to conduct thorough research and analysis, and their investment decisions can influence market sentiment.

Key ways these investors can impact the company include:

• Strategic Decisions: Large institutional shareholders may engage with the company's management to provide input on strategic decisions, such as community location and product mix, product pricing, and construction pace.
• Corporate Governance: Major shareholders can influence corporate governance matters, including executive compensation, board composition, and environmental and social responsibility initiatives.
• Stock Volatility: Significant buying or selling activity by these investors can lead to increased stock price volatility, especially after earnings reports or major company announcements. For example, after KB Home's Q1 2025 earnings report, which missed targets, the stock experienced a notable decline of 7.15% in after-hours trading.

Recent Moves:

Recent trading activity shows a mix of buying and selling by KB Home insiders. Over the last 3 months:

• Shares Bought: Insiders have bought 447,882 shares.
• Shares Sold: Insiders have sold 217,748 shares.
• Net Activity: There has been a net activity of 230,134 shares bought by insiders.

Over the last 12 months:

• Shares Bought: Insiders have bought 448,900 shares.
• Shares Sold: Insiders have sold 317,891 shares.
• Net Activity: There has been a net activity of 131,009 shares bought by insiders.

However, it's important to note that KBH insiders have sold more shares than they have bought in recent periods. KB Home actively manages its stock through repurchases. In the first quarter of 2025, the company repurchased 753,939 shares of its common stock at a cost of $50.0 million, or $66.32 per share. As of February 28, 2025, the company had $650.0 million remaining under its current common stock repurchase authorization.

Here is a table summarizing the major shareholders of KB Home (KBH) as of December 31, 2024:

Understanding who invests in KB Home (KBH) and their recent activities can offer valuable insights into the company's current standing and future potential. Monitoring these investors and their moves can help stakeholders make informed decisions. You might also be interested in Mission Statement, Vision, & Core Values of KB Home (KBH).

KB Home (KBH) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions to KB Home (KBH) provides critical insights into the company's stock performance and future outlook. Recent market behaviors, coupled with analyst perspectives, shape the investment narrative surrounding KB Home (KBH). Let's explore these dynamics.

Investor Sentiment: The sentiment of major shareholders significantly influences KB Home's (KBH) stock. Monitoring these investors' positions can provide clues about the overall confidence in the company. For example, significant purchases by institutional investors might indicate a positive outlook, while substantial sales could suggest concerns about future performance. This data is crucial for understanding the prevailing attitude toward KB Home (KBH) among key market participants.

Recent Market Reactions: The stock market's response to changes in ownership or large investor moves can be telling. News of a major investor increasing their stake in KB Home (KBH) often leads to a stock price increase, reflecting increased confidence. Conversely, a large sell-off by a prominent investor might trigger a price decline. Tracking these reactions helps assess the immediate impact of investor decisions on market valuation.

Analyst Perspectives: Financial analysts offer valuable insights into how key investors influence KB Home's (KBH) future. Analysts often weigh the impact of major shareholders' strategies, investment decisions, and overall market sentiment when forming their price targets and recommendations. Their analyses can provide a more nuanced understanding of the long-term implications of investor behavior.

Keeping an eye on these elements provides a more nuanced understanding of how market dynamics and investor behavior affect KB Home (KBH). Here are some key factors that influence investor sentiment:

• Earnings Reports: Positive earnings surprises typically boost investor confidence.
• Housing Market Trends: Favorable housing market conditions generally improve sentiment.
• Interest Rate Changes: Lower interest rates can increase home buying activity, positively affecting KB Home (KBH).
• Economic Indicators: Strong economic growth often correlates with higher investor confidence.

Here's a look at how different types of investors might view KB Home (KBH):

Institutional Investors:

• Often have a long-term investment horizon.
• Focus on fundamental analysis and company financials.
• Significant holdings can influence stock price stability.

Retail Investors:

• Can be more influenced by short-term market trends.
• May react quickly to news and social media sentiment.
• Collectively, their actions can create volatility.

Hedge Funds:

• Employ diverse strategies, including short-term trading.
• Focus on exploiting market inefficiencies.
• Their activities can lead to rapid price swings.

To illustrate, consider a hypothetical scenario where a major institutional investor, such as a large pension fund, announces a significant increase in its KB Home (KBH) holdings. The market might react positively, with the stock price rising due to increased demand and confidence. Analysts would likely comment on the rationale behind the investment, possibly highlighting KB Home's (KBH) strong financial performance or favorable industry outlook. Conversely, if a hedge fund with a substantial short position releases a negative report on KB Home (KBH), the stock price might decline as investors react to the pessimistic outlook. This demonstrates how different investor actions and perspectives can drive market behavior.

Here's an example of how market reactions might be tracked:

Understanding these dynamics helps stakeholders gauge the overall health and stability of KB Home (KBH) as an investment. You might also be interested in: KB Home (KBH): History, Ownership, Mission, How It Works & Makes Money