KB Home (NYSE:KBH) Shares Down 5.1% Following Weak Earnings

KB Home (NYSE:KBH)’s share price fell 5.1% during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $49.80 and last traded at $50.2230. 689,787 shares were traded during trading, a decline of 39% from the average session volume of 1,132,803 shares. The stock had previously closed at $52.94.

The construction company reported $0.52 EPS for the quarter, missing the consensus estimate of $0.53 by ($0.01). The company had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.10 billion. KB Home had a return on equity of 9.59% and a net margin of 5.96%.The business’s revenue for the quarter was down 22.6% on a year-over-year basis. During the same period in the previous year, the business posted $1.49 EPS.

KB Home Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Shareholders of record on Thursday, February 5th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend was Thursday, February 5th. KB Home’s dividend payout ratio (DPR) is currently 20.37%.

More KB Home News

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

• Positive Sentiment: Management is accelerating a shift to build‑to‑order (targeting ~70% of deliveries in H2 2026), which management says should preserve pricing/margins as volume softens. KB Home outlines shift to 70% built-to-order deliveries
• Positive Sentiment: KBH repurchased $50 million of stock in Q1, a modest capital return that supports EPS and signals board confidence. KB HOME REPORTS 2026 FIRST QUARTER RESULTS
• Positive Sentiment: At least one firm (Citizens/JMP) initiated coverage with an outperform and a high price target, showing some analyst confidence in longer-term upside. Citizens Initiates Coverage of KB Home
• Neutral Sentiment: Q1 EPS came in roughly in line with some estimates (≈$0.52) but revenue missed and declined ~22–23% year‑over‑year — mixed signals on operating leverage. Investors should read the call/transcript for detail on orders and cancellations. KB Home Q1 Earnings Meet Estimates, Revenues Miss
• Neutral Sentiment: Full earnings call transcript and slide deck provide details on backlog, cancellations, and timing of the build‑to‑order margin improvement; useful for modeling turnaround timing. KB Home Q1 2026 Earnings Call Transcript
• Negative Sentiment: Management cut full‑year guidance and explicitly said the Iran/Middle East war is already deterring prospective buyers, flagging lower near‑term demand and adding macro uncertainty to the outlook. Leading home builder says the Iran war is already hurting housing market
• Negative Sentiment: Q1 revenue dropped roughly 23% y/y and the weak top line plus a softer order cadence prompted the guidance cut — the core reason sell‑side models are being downgraded. KB Home Stock Sinks After Q1 Revenues Fall 23%
• Negative Sentiment: Multiple analysts trimmed price targets and ratings after the quarter (Goldman, UBS, Truist, Wells Fargo, RBC, BofA, etc.), increasing near‑term sell pressure and lowering consensus estimates. KB Home Analysts Lower Their Forecasts After Downbeat Q1 Results

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on KBH. Bank of America dropped their price target on KB Home from $63.00 to $56.00 and set a “neutral” rating on the stock in a research report on Wednesday. Raymond James Financial downgraded shares of KB Home from an “outperform” rating to a “market perform” rating in a report on Wednesday, December 24th. JPMorgan Chase & Co. lowered their target price on shares of KB Home from $71.00 to $50.00 and set a “neutral” rating for the company in a research note on Monday, December 29th. Royal Bank Of Canada dropped their target price on shares of KB Home from $54.00 to $53.00 and set a “sector perform” rating on the stock in a report on Wednesday. Finally, Zacks Research downgraded shares of KB Home from a “hold” rating to a “strong sell” rating in a research report on Tuesday, December 23rd. Three equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, KB Home has an average rating of “Hold” and an average target price of $59.50.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KBH. SG Americas Securities LLC boosted its holdings in shares of KB Home by 204.8% during the third quarter. SG Americas Securities LLC now owns 69,078 shares of the construction company’s stock valued at $4,396,000 after acquiring an additional 46,415 shares during the period. Y Intercept Hong Kong Ltd acquired a new stake in shares of KB Home in the 3rd quarter worth about $1,551,000. Deprince Race & Zollo Inc. acquired a new stake in shares of KB Home in the 3rd quarter worth about $59,301,000. Strs Ohio lifted its position in KB Home by 1,788.1% in the 3rd quarter. Strs Ohio now owns 79,300 shares of the construction company’s stock valued at $5,047,000 after purchasing an additional 75,100 shares during the last quarter. Finally, iSAM Funds UK Ltd bought a new stake in KB Home in the 3rd quarter valued at about $1,451,000. Institutional investors and hedge funds own 96.09% of the company’s stock.

KB Home Price Performance

The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.53 and a current ratio of 5.77. The stock has a market capitalization of $3.30 billion, a price-to-earnings ratio of 10.63, a price-to-earnings-growth ratio of 7.04 and a beta of 1.47. The business’s 50 day simple moving average is $59.55 and its 200-day simple moving average is $61.00.

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.