KB Home (NYSE:KBH) Downgraded by Zacks Research to “Strong Sell”

Zacks Research downgraded shares of KB Home (NYSE:KBH) from a hold rating to a strong sell rating in a research report released on Thursday morning,Zacks reports.

KBH has been the topic of several other research reports. Weiss Ratings cut KB Home from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, September 3rd. Wall Street Zen raised shares of KB Home from a “sell” rating to a “hold” rating in a research report on Saturday, June 27th. Truist Financial cut their target price on shares of KB Home from $56.00 to $55.00 and set a “hold” rating for the company in a research report on Wednesday. Barclays lifted their target price on shares of KB Home from $56.00 to $57.00 and gave the company an “overweight” rating in a research note on Thursday, June 25th. Finally, Citizens Jmp reaffirmed a “market outperform” rating and issued a $77.00 price target on shares of KB Home in a research note on Thursday, September 10th. Four research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $59.92.

KB Home Stock Down 3.0%

NYSE:KBH opened at $47.08 on Thursday. KB Home has a 1-year low of $44.03 and a 1-year high of $67.57. The firm has a market capitalization of $2.89 billion, a price-to-earnings ratio of 16.40, a price-to-earnings-growth ratio of 2.51 and a beta of 1.34. The stock has a fifty day simple moving average of $54.45 and a 200 day simple moving average of $53.66.

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

KB Home Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 6th were paid a $0.25 dividend. The ex-dividend date was Thursday, August 6th. This represents a $1.00 dividend on an annualized basis and a yield of 2.1%. KB Home’s payout ratio is 34.84%.

Insider Activity at KB Home

In other news, EVP Albert Praw sold 22,015 shares of the 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 transaction, the executive vice president owned 104,062 shares in the company, valued at $6,108,439.40. This represents a 17.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Arthur Collins sold 4,000 shares of the firm’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total transaction of $227,840.00. Following the transaction, the director owned 9,157 shares in the company, valued at $521,582.72. This represents a 30.40% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 4.69% of the company’s stock.

Hedge Funds Weigh In On KB Home

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of KB Home in the second quarter worth $618,489,000. Donald Smith & CO. Inc. bought a new position in KB Home in the 2nd quarter worth $108,652,000. Norges Bank acquired a new position in KB Home during the 4th quarter worth $48,418,000. Bamco Inc. NY bought a new stake in KB Home during the second quarter valued at about $37,500,000. Finally, Bank of New York Mellon Corp bought a new stake in KB Home during the second quarter valued at about $35,837,000. Institutional investors and hedge funds own 96.09% of the company’s stock.

Key Stories Impacting KB Home

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.