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In a recent filing with the SEC, KB Home (NYSE:KBH), a prominent operative builder, disclosed salary adjustments for its top executives. As of July 1, 2024, the board of directors’ management development and compensation committee has approved pay raises for several named executive officers.
The Los Angeles-based company, with a history dating back to its former name Kaufman & Broad Home Corp, announced through the 8-K filing that Jeff J. Kaminski, the Executive Vice President and Chief Financial Officer, will receive a base salary of $855,000.
Moreover, Albert Z. Praw, the Executive Vice President of Real Estate and Business Development, and Brian J. Woram, the Executive Vice President and General Counsel, will both have their base salaries increased to $715,000.
This move reflects the board’s decision to adjust compensation in alignment with the company's objectives and market standards. The increases are part of the company’s compensatory arrangements for certain officers and take into account the roles and responsibilities of the named executives.
KB Home, incorporated in Delaware and operating with a fiscal year end of November 30, has its common stock and rights to purchase series A participating cumulative preferred stock listed on the New York Stock Exchange. The business, located at 10990 Wilshire Boulevard in Los Angeles, California, is part of the 05 Real Estate & Construction sector according to its organization name classification.
The 8-K filing, dated July 19, 2024, serves as the official document informing the public and investors of the aforementioned changes in executive compensation. It is a standard report for publicly traded companies to disclose significant changes to their business, which in this case includes the salary adjustments for key personnel.
Investors and stakeholders of KB Home can refer to this SEC filing for further details on the company's governance and executive compensation practices. The information presented is based on the press release statement and provides a transparent view of the company's internal financial decisions.
In other recent news, KB Home has reported significant financial achievements in the second fiscal quarter of 2024. The homebuilder's earnings per share (EPS) reached $2.15, surpassing the anticipated $1.75, largely due to stronger deliveries and an improved gross margin than projected.
KB Home's revenues exceeded $1.7 billion, backed by a backlog valued at over $3 billion. Analyst firms BofA Securities, RBC Capital, and Evercore ISI have responded to these results by maintaining or raising their price targets and adjusting their earnings estimates for the company.
BofA Securities kept its price target steady at $75, citing the belief that KB Home shares are currently trading at a fair value. RBC Capital raised its price target to $70 and increased its full-year 2024 EPS estimate to $8.28, a rise of 8% driven by the second-quarter beat and improved margins.
Evercore ISI, on the other hand, increased its price target for KB Home to $86, based on the robust second quarter results, and revised its EPS estimates for the company for fiscal years 2024 and 2025.
These recent developments highlight the company's strategic initiatives aimed at long-term success. Despite potential challenges such as increased resale inventory in certain markets and delays in community openings, KB Home remains focused on its growth strategies, including strategic land investments and a focus on build-to-order sales.
InvestingPro Insights
Following the recent executive salary adjustments at KB Home (NYSE:KBH), it's pertinent to look at the company's financial health and market performance to understand the broader context. With a market capitalization of $6.01 billion and a price-to-earnings (P/E) ratio of 10.31, KB Home appears to be valued reasonably in the market. The slightly lower adjusted P/E ratio of 9.93 for the last twelve months as of Q2 2024 suggests a potentially attractive valuation for investors considering the company's earnings capacity.
Moreover, the company's dividend yield stands at 1.25%, which might appeal to income-focused investors, especially given KB Home's track record of maintaining dividend payments for 39 consecutive years. This commitment to shareholder returns is further underscored by management's aggressive share buyback strategy, as highlighted by InvestingPro Tips. Moreover, the company's strong price performance, with a 17.43% return over the last month and a 31.39% return over the last three months, indicates robust investor confidence and market momentum.
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