KB Home (NYSE:KBH) Shares Gap Down After Analyst Downgrade

Shares of KB Home (NYSE:KBH) gapped down prior to trading on Friday after Royal Bank Of Canada lowered their price target on the stock from $59.00 to $54.00. The stock had previously closed at $62.75, but opened at $56.45. Royal Bank Of Canada currently has a sector perform rating on the stock. KB Home shares last traded at $57.6120, with a volume of 641,111 shares.

A number of other equities analysts also recently weighed in on KBH. Zacks Research raised KB Home from a “strong sell” rating to a “hold” rating in a report on Friday, September 5th. Weiss Ratings reissued a “hold (c+)” rating on shares of KB Home in a research report on Wednesday, October 8th. Wells Fargo & Company reduced their price objective on KB Home from $60.00 to $55.00 and set an “underweight” rating for the company in a research note on Friday. Evercore ISI set a $65.00 target price on KB Home and gave the stock an “in-line” rating in a research note on Tuesday, October 7th. Finally, Oppenheimer started coverage on shares of KB Home in a report on Wednesday, September 3rd. They issued a “market perform” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $62.91.

Insider Transactions at KB Home

In other news, EVP Albert Z. Praw sold 20,284 shares of the stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $60.08, for a total value of $1,218,662.72. Following the sale, the executive vice president directly owned 104,062 shares of the company’s stock, valued at approximately $6,252,044.96. This represents a 16.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 3.89% of the stock is owned by insiders.

Key Stores Impacting KB Home

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

• Positive Sentiment: KBH beat estimates for the quarter: $1.92 EPS vs. $1.79 expected and $1.69B revenue vs. ~$1.66B consensus — evidence the company executed through a tough market. Read More.
• Positive Sentiment: Company statement/press release and slide deck highlighted that KBH met or exceeded most Q4 targets and closed the fiscal year helping many buyers — supports management execution even amid headwinds. Read More.
• Neutral Sentiment: Earnings call materials and the full transcript are available for detail on guidance and margin drivers; investors should review the call for any forward-looking language that may explain the selloff. Read More.
• Negative Sentiment: Analysts are trimming expectations: RBC cut its price target from $59 to $54 and set a “sector perform” — a direct near-term catalyst for additional selling pressure. Read More.
• Negative Sentiment: Key metrics show deterioration: revenue was down ~15.5% year-over-year and EPS is well below last year’s $2.52, reinforcing concerns about demand and margins into 2026. Read More.
• Negative Sentiment: Multiple analyst write-ups and coverage note 2026 could be a challenging year (stagnant housing market, affordability and mortgage-rate pressure), which likely outweighs the near-term beat for investors focused on forward growth. Read More.
• Negative Sentiment: Press and media coverage emphasize fewer homes delivered and narrowed profit amid a weak housing backdrop — macro/industry weakness is a bigger driver of valuation than this one-quarter beat. Read More.

Institutional Investors Weigh In On KB Home

A number of large investors have recently added to or reduced their stakes in KBH. CIBC Private Wealth Group LLC boosted its position in KB Home by 78.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,228 shares of the construction company’s stock valued at $142,000 after buying an additional 977 shares during the period. CIBC Bancorp USA Inc. purchased a new stake in shares of KB Home during the third quarter worth about $451,000. Sunbelt Securities Inc. bought a new stake in shares of KB Home in the third quarter worth about $64,000. Coldstream Capital Management Inc. bought a new stake in shares of KB Home in the third quarter worth about $257,000. Finally, Advisory Services Network LLC bought a new stake in shares of KB Home in the third quarter worth about $154,000. Hedge funds and other institutional investors own 96.09% of the company’s stock.

KB Home Trading Down 9.3%

The business has a fifty day moving average of $62.13 and a 200-day moving average of $59.96. The company has a market cap of $3.68 billion, a PE ratio of 7.53, a P/E/G ratio of 5.12 and a beta of 1.40.

KB Home (NYSE:KBH) last issued its quarterly earnings data on Thursday, December 18th. The construction company reported $1.92 EPS for the quarter, topping the consensus estimate of $1.79 by $0.13. KB Home had a net margin of 7.92% and a return on equity of 12.91%. The business had revenue of $1.69 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same period in the prior year, the business earned $2.52 EPS. The company’s revenue for the quarter was down 15.5% on a year-over-year basis. As a group, research analysts predict that KB Home will post 8.42 EPS for the current year.

KB Home Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, November 26th. Stockholders of record on Thursday, November 13th were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend was Thursday, November 13th. KB Home’s payout ratio is presently 13.25%.

KB Home Company Profile

KB Home is an American homebuilding company headquartered in Los Angeles, California. Founded in 1957, it was among the first homebuilders to go public, offering investors access to one of the nation’s largest residential construction platforms. The company is structured to serve a broad spectrum of homebuyers, with a particular focus on first-time, first move-up and active adult segments. As a public company trading on the New York Stock Exchange under the symbol KBH, KB Home draws on decades of experience in land acquisition, construction and community planning.

At its core, KB Home designs and constructs single-family detached and attached homes, townhomes and condominium units.