Zacks Research Downgrades KB Home (NYSE:KBH) to Strong Sell

KB Home (NYSE:KBH) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday, Zacks reports.

Several other research analysts also recently issued reports on KBH. Citigroup reiterated a “market outperform” rating on shares of KB Home in a research note on Thursday, September 10th. Barclays raised their price target on shares of KB Home from $56.00 to $57.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Citizens Jmp restated a “market outperform” rating and issued a $77.00 price objective on shares of KB Home in a report on Thursday, September 10th. UBS Group upped their price objective on KB Home from $63.00 to $66.00 and gave the company a “buy” rating in a research report on Wednesday, June 24th. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and set a $53.00 target price on shares of KB Home in a research note on Wednesday, June 24th. Four research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $59.92.

KB Home Price Performance

KBH opened at $47.08 on Thursday. The stock has a 50-day moving average price of $54.45 and a 200-day moving average price of $53.66. The firm has a market cap of $2.89 billion, a PE ratio of 16.40, a P/E/G ratio of 2.51 and a beta of 1.34. KB Home has a 1 year low of $44.03 and a 1 year high of $67.57.

KB Home (NYSE:KBH) last announced its quarterly earnings data on Tuesday, June 23rd. The construction company reported $0.43 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.01). The firm had revenue of $1.11 billion for the quarter, compared to analysts’ expectations of $1.09 billion. KB Home had a net margin of 4.94% and a return on equity of 7.67%. The business’s revenue for the quarter was down 27.3% compared to the same quarter last year. During the same period last year, the company posted $1.50 earnings per share. As a group, sell-side analysts anticipate that KB Home will post 3.27 EPS for the current year.

Insider Buying and Selling

In other KB Home news, Director Arthur Collins sold 4,000 shares of KB Home stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total value of $227,840.00. Following the completion of the sale, the director owned 9,157 shares of the company’s stock, valued at approximately $521,582.72. The trade was a 30.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Albert Z. Praw sold 22,015 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the sale, the executive vice president owned 104,062 shares of the company’s stock, valued at approximately $6,108,439.40. This represents a 17.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 4.69% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On KB Home

Institutional investors and hedge funds have recently modified their holdings of the company. Van Hulzen Asset Management LLC purchased a new stake in KB Home during the second quarter valued at $563,000. Engineers Gate Manager LP purchased a new position in KB Home in the second quarter worth about $658,000. Integrated Wealth Concepts LLC purchased a new position in KB Home in the second quarter worth about $73,000. Nykredit A S bought a new stake in shares of KB Home during the 2nd quarter valued at about $152,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of KB Home during the 2nd quarter valued at about $1,609,000. 96.09% of the stock is currently owned by hedge funds and other institutional investors.

KB Home News Summary

Here are the key news stories impacting KB Home this week:

• Positive Sentiment: KB Home may appear undervalued after housing-affordability concerns weighed on its shares. The company’s built-to-order model could also help support demand and construction activity despite a difficult housing market. KB Home Stock May Be Undervalued Following Housing Affordability Pressure
• Neutral Sentiment: Investors are focused on the September 22 earnings release. Preview reports expect fiscal-third-quarter results to reflect lower home deliveries and a lower average selling price, although upcoming results could provide updated insight into demand, pricing and affordability trends. KB Home to Report Q3 Earnings
• Negative Sentiment: Zacks Research reduced its forecasts for KB Home’s quarterly and annual earnings: Q3 2026 EPS to $0.86 from $0.87, Q3 2027 EPS to $1.01 from $1.02, FY2027 EPS to $4.09 from $4.10, Q3 2028 EPS to $1.34 from $1.35, and FY2028 EPS to $5.12 from $5.13. The small cuts signal somewhat weaker expected profitability.
• Negative Sentiment: A separate update reported that Zacks Research downgraded KB Home from “Hold” to “Strong Sell,” adding to bearish sentiment ahead of earnings. Other accompanying research notes still list a “Hold” rating, so the downgrade information appears inconsistent across reports. Zacks Research
• Negative Sentiment: The company’s latest reported quarter already showed significant year-over-year weakness, including revenue down 27.3% and EPS of $0.43 versus $1.50 a year earlier. That backdrop makes the upcoming delivery, pricing and margin figures especially important for the stock.

KB Home Company Profile

KB Home (NYSE: KBH) is a homebuilding company that designs, constructs and sells residential properties in the United States. Its offerings primarily include single-family homes, with communities and floor plans intended for first-time buyers, move-up buyers and other owner-occupants. The company also provides homebuyers with opportunities to personalize selected features and finishes through its build-to-order approach.

The company operates in several major housing markets across the United States, including locations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.