Citadel Investment Becomes Fifth Largest Shareholder Of KB Home

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Citadel Investment Becomes Fifth Largest Shareholder Of KB Home

Citadel Investment Group, L.L.C. has dramatically boosted its stake in KB Home, according to a 13G filed with the SEC. Ken Griffin’s value based hedge fund held 542,090 shares of the home builder according to the firm’s 13F, equal to 0.70% of outstanding shares. The number now stands at 4.8% of shares outstanding or 3,720,136 shares. This makes the fund the fifth largest shareholder in KB Home (NYSE:KBH). In another 13G, Griffin reports ownership of 2,640,057 shares of Penn Virginia Corporation (NYSE:PVA), or 4.8% of outstanding shares. The position in the oil & Gas company appears to be a new one.

KB Home (NYSE:KBH) is a homebuilding company. The Company constructs and sells homes through its operating divisions under the name KB Home.  Yesterday, KB Home reported 4Q earnings beating the Streets top and bottom line expectations. Revenue of $578.2M and EPS of $0.10 compares to the consensus estimates of $568M and EPS of $0.06. The top line was primarily driven by a 13.5% increase in ASP and a slight y/y increase in deliveries, up 6%. The bottom line benefited from improved SG&A and a $5.3M income tax benefit (tax benefit contributed $0.07 to EPS).

For the nine months ended 31 August 2012, KB Home revenues increased 17% to $981.9M. Net loss decreased 65% to $66.7M. Revenues reflect Financial Services segment increase of 27% to $7.9M. Lower net loss reflects Loss on loan guaranty decrease from $37.3M (expense) to $0K, Financial Services – Expenses decrease of 10% to $2.2M (expense). Dividend per share decreased from $0.19 to $0.11.

Penn Virginia Corporation (Penn Virginia) is an independent oil and gas company primarily engaged in the exploration, development and production of natural gas and oil in various domestic onshore regions of the United States, including Texas, Appalachia, the Mid-Continent and Mississippi.

For the nine months ended 30 September 2012, Penn Virginia Corporation revenues increased 6% to $239M. Net loss decreased 52% to $50.1M. Revenues reflect Crude Oil Prod. (Barrels) – Texas increase from 501K to 1.5M barrels, Oil Equiv. Prod.(Bbls/Day)-Texas increase of 26% to 10K barrels per day, Crude oil increase from $75.3M to $174.1M, Gain on sales of property and equipment increase from $523K to $2.4M.

Disclosure: No position

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