KB Home executives receive annual incentive awards

LOS ANGELES, CA – KB Home (NYSE:KBH), a leading homebuilding company with a market capitalization of $5.05 billion and strong financial health according to InvestingPro analysis, announced on Monday the determination of annual incentive awards for its executives, as per a recent filing with the Securities and Exchange Commission.

The board of directors’ management development and compensation committee finalized the incentive awards for eligible participants under the company’s annual incentive compensation program for the fiscal year 2024 on January 23, 2025. Jeffery T. Mezger, among other executives, received a significant incentive award. The company’s strong financial position is reflected in its impressive current ratio of 5.49, indicating robust liquidity.

A portion of the incentive payout for certain participants was issued in shares of restricted stock. These shares are scheduled to vest in equal installments over a three-year period starting from January 25, 2026. The value of the restricted stock was based on KB Home’s common stock closing price of $67.72 on January 23, 2025. According to InvestingPro analysis, the stock currently trades at an attractive P/E ratio of 7.98, suggesting potential undervaluation relative to peers.

The incentive awards, divided between cash and restricted stock, were disclosed for several named executive officers. Jeff J. Kaminski, the company’s executive vice president and chief financial officer, received a total annual incentive of $2,249,419, entirely in cash. Robert V. McGibney, President and Chief Operating Officer, was also awarded $3,768,968 in cash.

Jeffrey T. Mezger, the company’s Chairman and CEO, received an incentive totaling $7,795,702, with $6,295,702 in cash and $1,500,000 in restricted stock, which equates to 22,150 shares. Albert Z. Praw, executive vice president of real estate and business development, and Brian J. Woram, executive vice president and general counsel, received cash incentives of $1,803,306 and $1,601,600 respectively, with Woram also receiving $69,902 in restricted stock (1,032 shares).

This disclosure aligns with the company’s commitment to transparency regarding its executive compensation strategies. The announcement comes as KB Home continues to navigate the competitive homebuilding market. InvestingPro subscribers have access to 10 additional exclusive insights about KB Home, including detailed analysis of its financial health, valuation metrics, and growth prospects through comprehensive Pro Research Reports.

The information provided in this article is based on a press release statement from the Securities and Exchange Commission filing by KB Home.

In other recent news, KB Home’s financial performance and outlook have prompted several analyst firms to revise their stance on the company’s stock. Keefe, Bruyette & Woods maintained a Market Perform rating but cut KB Home’s price target to $76, citing a projected decrease in gross margin and a drop in expected home deliveries. Meanwhile, Seaport Global Securities upgraded the stock from Sell to Neutral, noting KB Home’s stable gross margin guidance and significant earnings bolstered by its operations in Western markets.

JPMorgan also revised its price target for KB Home shares, reducing it to $74.50 while maintaining a Neutral stance. This adjustment was prompted by the homebuilder’s lowered revenue guidance due to softer demand. Barclays (LON:BARC), on the other hand, revised KB Home’s price target to $60 while maintaining an Equalweight rating, cautioning about potential challenges ahead such as increased incentive levels or higher costs impacting gross margins.

Evercore ISI exhibited confidence in KB Home by increasing the stock’s price target from $88.00 to $95.00 while maintaining an Outperform rating. This upgrade was based on KB Home’s fourth-quarter earnings for fiscal year 2024, which exceeded expectations, and an improved backlog turnover outlook. These are recent developments that investors should consider.

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