Consumer Durables News

Have KB Home (NYSE:KBH) Insiders Been Selling Their Stock?


We wouldn’t blame KB Home (NYSE:KBH) shareholders if they were a little worried about the fact that Albert Praw, the Executive Vice President of Real Estate & Business Development recently netted about US$857k selling shares at an average price of US$28.77. That’s a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

Our analysis indicates that KBH is potentially undervalued!

The Last 12 Months Of Insider Transactions At KB Home

In fact, the recent sale by Albert Praw was the biggest sale of KB Home shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of US$28.85. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. It is worth noting that this sale was only 17% of Albert Praw’s holding.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:KBH Insider Trading Volume November 2nd 2022

I will like KB Home better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that KB Home insiders own 3.2% of the company, worth about US$79m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At KB Home Tell Us?

An insider sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. But it is good to see that KB Home is growing earnings. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing KB Home. When we did our research, we found 4 warning signs for KB Home (2 are significant!) that we believe deserve your full attention.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Valuation is complex, but we’re helping make it simple.

Find out whether KB Home is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.



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