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

Zacks Research cut shares of KB Home (NYSE:KBH) from a hold rating to a strong sell rating in a research report report published on Tuesday,Zacks.com reports.

A number of other research firms have also recently issued reports on KBH. Raymond James Financial cut KB Home from an “outperform” rating to a “market perform” rating in a report on Wednesday. Wells Fargo & Company lowered their price objective on shares of KB Home from $60.00 to $55.00 and set an “underweight” rating for the company in a research report on Friday, December 19th. Bank of America dropped their target price on shares of KB Home from $62.00 to $58.00 and set a “neutral” rating for the company in a research note on Monday. UBS Group reiterated a “buy” rating on shares of KB Home in a research report on Friday, December 19th. Finally, JPMorgan Chase & Co. lowered their price target on shares of KB Home from $63.00 to $53.00 and set a “neutral” rating for the company in a report on Monday, September 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $64.09.

KB Home Price Performance

Shares of KBH opened at $57.80 on Tuesday. The company has a market capitalization of $3.74 billion, a P/E ratio of 11.77, a PEG ratio of 2.34 and a beta of 1.40. KB Home has a one year low of $48.90 and a one year high of $72.64. The business’s 50 day simple moving average is $61.86 and its 200-day simple moving average is $60.14.

KB Home (NYSE:KBH) last released its quarterly earnings results on Thursday, December 18th. The construction company reported $1.92 earnings per share for the quarter, beating analysts’ consensus estimates of $1.79 by $0.13. The firm had revenue of $1.69 billion during the quarter, compared to analysts’ expectations of $1.66 billion. KB Home had a return on equity of 11.40% and a net margin of 6.88%.The business’s revenue was down 15.5% on a year-over-year basis. During the same period last year, the firm posted $2.52 EPS. On average, sell-side analysts anticipate that KB Home will post 8.42 EPS for the current fiscal year.

KB Home Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, November 26th. Investors of record on Thursday, November 13th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Thursday, November 13th. KB Home’s payout ratio is 20.37%.

Insiders Place Their Bets

In other KB Home news, EVP Albert Z. Praw sold 20,284 shares of the firm’s stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 104,062 shares of the company’s stock, valued at approximately $6,252,044.96. This trade represents a 16.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.89% of the stock is owned by corporate insiders.

Institutional Trading of KB Home

Several institutional investors and hedge funds have recently made changes to their positions in KBH. Fulcrum Asset Management LLP bought a new position in shares of KB Home in the 3rd quarter worth $36,000. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new position in KB Home in the second quarter valued at about $44,000. Jones Financial Companies Lllp lifted its stake in KB Home by 44.4% in the third quarter. Jones Financial Companies Lllp now owns 781 shares of the construction company’s stock valued at $49,000 after buying an additional 240 shares during the period. SBI Securities Co. Ltd. boosted its holdings in KB Home by 2,848.4% during the third quarter. SBI Securities Co. Ltd. now owns 914 shares of the construction company’s stock worth $58,000 after buying an additional 883 shares during the last quarter. Finally, Ameritas Advisory Services LLC bought a new position in KB Home during the second quarter worth about $59,000. Institutional investors own 96.09% of the company’s stock.

Key Stores Impacting KB Home

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

• Neutral Sentiment: Evercore ISI kept its hold rating on KB Home, signaling no change in recommendation despite the recent volatility. Evercore ISI Sticks to Its Hold Rating for KB Home (KBH)
• Neutral Sentiment: Keefe, Bruyette & Woods maintained a market-perform rating on KBH, leaving their recommendation steady even as others turn more bearish. Keefe, Bruyette & Woods maintains KB Home market perform
• Neutral Sentiment: Benzinga ran a roundup noting analysts pulling back on KBH, useful for context but not a new proprietary view. This KB Home Analyst Is No Longer Bullish; Here Are Top 2 Downgrades For Wednesday
• Negative Sentiment: Zacks Research downgraded KB Home from “hold” to “strong sell,” a sharp negative signal that can amplify selling pressure from retail and model-driven funds. Zacks Research downgrade
• Negative Sentiment: Raymond James cut KBH to market perform (from outperform), citing disappointing 4Q results and risks as KBH shifts back toward BTO while competitors aggressively clear inventory — a key fundamental concern for near-term volumes. KB Home downgraded to market perform from outperform at Raymond James
• Negative Sentiment: Bank of America lowered its price target to $58, signaling reduced near-term upside in analyst valuation models. Bank of America Lowers KB Home Price Target to $58.00
• Negative Sentiment: Keefe, Bruyette & Woods also published a pessimistic forecast note (separate from the maintained rating), adding to downside narrative about KBH’s near-term outlook. Keefe, Bruyette & Woods Issues Pessimistic Forecast for KB Home

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.