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

KB Home (NYSE:KBH) gapped down prior to trading on Friday after UBS Group lowered their price target on the stock from $83.00 to $77.00. The stock had previously closed at $62.75, but opened at $56.45. UBS Group currently has a buy rating on the stock. KB Home shares last traded at $57.6120, with a volume of 641,111 shares.

KBH has been the subject of a number of other research reports. Raymond James Financial upped their target price on KB Home from $65.00 to $72.00 and gave the stock an “outperform” rating in a report on Thursday, September 25th. Zacks Research upgraded KB Home from a “strong sell” rating to a “hold” rating in a research note on Friday, September 5th. Evercore ISI set a $65.00 price objective on shares of KB Home and gave the company an “in-line” rating in a report on Tuesday, October 7th. JPMorgan Chase & Co. lowered their target price on shares of KB Home from $63.00 to $53.00 and set a “neutral” rating for the company in a research note on Monday, September 29th. Finally, Bank of America cut their price target on shares of KB Home from $67.00 to $62.00 and set a “neutral” rating on the stock in a research note on Friday, October 10th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $62.91.

Insider Activity at KB Home

In related news, EVP Albert Z. Praw sold 20,284 shares of KB Home stock in a transaction dated Tuesday, November 4th. The stock was sold at an average price of $60.08, for a total value of $1,218,662.72. Following the completion of the transaction, the executive vice president directly owned 104,062 shares of the company’s stock, valued at $6,252,044.96. The trade was a 16.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 3.89% of the company’s stock.

Key KB Home News

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

• Positive Sentiment: Q4 results beat expectations: KBH reported $1.92 EPS vs. a $1.79 consensus and $1.69B revenue vs. $1.66B, showing the company outperformed near-term estimates. Article Title
• Positive Sentiment: Management says it met or exceeded most Q4 financial targets and closed the year helping ~13,000 buyers, highlighting operational resilience amid a tough housing market. Article Title
• Neutral Sentiment: Earnings call materials and transcript are available for investors to review management’s commentary on backlog, pricing and build cadence. These documents provide detail but contain mixed signals on near-term demand. Article Title
• Neutral Sentiment: Key metrics show year-over-year declines (deliveries, revenue down ~15.5% y/y), which explain the muted tone despite the beat — useful context for forecasting. Article Title
• Negative Sentiment: Analysts cut forecasts and targets after the report; multiple shops reduced 2026 estimates and RBC lowered its price target to $54 (sector perform), pressuring the stock. Article Title
• Negative Sentiment: Market reaction: shares slid after the print as investors focused on weakening demand, a shrinking backlog and cautious 2026 outlook that could reduce revenue and margins next year. Article Title
• Negative Sentiment: Analyst/industry write-ups warn 2026 is likely to be challenging — investors should watch backlog, pricing trends, cancellation rates and guidance updates for signs of stabilization. Article Title

Institutional Investors Weigh In On KB Home

Several hedge funds have recently bought and sold shares of KBH. CIBC Private Wealth Group LLC raised its position in KB Home by 78.1% during the third quarter. CIBC Private Wealth Group LLC now owns 2,228 shares of the construction company’s stock valued at $142,000 after purchasing an additional 977 shares in the last quarter. CIBC Bancorp USA Inc. bought a new position in shares of KB Home during the third quarter valued at $451,000. Sunbelt Securities Inc. acquired a new position in shares of KB Home during the third quarter worth $64,000. Coldstream Capital Management Inc. acquired a new position in shares of KB Home during the third quarter worth $257,000. Finally, Advisory Services Network LLC bought a new stake in shares of KB Home in the third quarter worth $154,000. 96.09% of the stock is currently owned by institutional investors and hedge funds.

KB Home Stock Down 8.6%

The company has a market cap of $3.71 billion, a P/E ratio of 7.59, a PEG ratio of 5.10 and a beta of 1.40. The firm’s 50 day moving average is $62.13 and its two-hundred day moving average is $60.00.

KB Home (NYSE:KBH) last posted its quarterly earnings data on Thursday, December 18th. The construction company reported $1.92 EPS for the quarter, beating analysts’ consensus estimates of $1.79 by $0.13. The company had revenue of $1.69 billion for the quarter, compared to analyst estimates of $1.66 billion. KB Home had a net margin of 6.88% and a return on equity of 11.34%. The company’s quarterly revenue was down 15.5% on a year-over-year basis. During the same period in the prior year, the firm posted $2.52 EPS. As a group, research analysts forecast that KB Home will post 8.42 EPS for the current fiscal year.

KB Home Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, November 26th. Stockholders of record on Thursday, November 13th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, November 13th. This represents a $1.00 annualized dividend and a dividend yield of 1.7%. KB Home’s dividend payout ratio is currently 13.25%.

About KB Home

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.