Paris-based insurance firm Axa SA upped its stake in homebuilder KB Home by 9 million shares Tuesday, giving Europe’s second-largest insurer a 10 percent stake in the struggling homebuilder.
Axa increased its stake in the Los Angeles company to 9.25 million shares, which now makes it worth $350 million based on Monday’s closing price of $37.84.
Less than two weeks ago KB reported a second-quarter loss for the quarter ending May 31 of $149 million amid the largest drop in sales for the company over the past three years. The company was also downgraded by Citigroup shortly thereafter.
Shares in KB dropped $1.40, or 3.7 percent, to $36.44 in afternoon trading Tuesday on the New York Stock Exchange. Shares in KB have lost more than 30 percent this year.