Barclays Lowers KB Home (NYSE:KBH) Price Target to $49.00

Key Points

• Barclays lowered KB Home’s price target from $57 to $49 while maintaining an “overweight” rating, implying only about 0.78% upside from the prior close.
• Analyst sentiment is mixed: KB Home has a consensus “Hold” rating and an average price target of $58.50, with targets ranging from $50 to $77.
• Although quarterly EPS of $1.05 exceeded expectations of $0.88, revenue fell 20% year over year to $1.30 billion, reflecting weaker deliveries and demand pressures from elevated mortgage rates.

KB Home (NYSE:KBH - Get Free Report) had its price target lowered by equities research analysts at Barclays from $57.00 to $49.00 in a research report issued on Wednesday, Benzinga reports. The brokerage presently has an "overweight" rating on the construction company's stock. Barclays's price target would indicate a potential upside of 0.78% from the company's previous close.

Several other brokerages also recently issued reports on KBH. Citizens Jmp reiterated a "market outperform" rating and issued a $77.00 price objective on shares of KB Home in a research report on Thursday, September 10th. Royal Bank Of Canada restated a "sector perform" rating and set a $53.00 target price on shares of KB Home in a report on Wednesday, June 24th. Wall Street Zen raised KB Home from a "sell" rating to a "hold" rating in a report on Saturday, June 27th. UBS Group raised their price objective on shares of KB Home from $63.00 to $66.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. Finally, Wells Fargo & Company reduced their target price on shares of KB Home from $52.00 to $50.00 and set an "underweight" rating on the stock in a research report on Friday, September 11th. Four equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $58.50.

KB Home Stock Performance

KBH opened at $48.62 on Wednesday. The firm has a market cap of $2.98 billion, a price-to-earnings ratio of 16.94, a PEG ratio of 2.47 and a beta of 1.34. The firm's 50-day simple moving average is $54.18 and its 200-day simple moving average is $53.44. KB Home has a twelve month low of $44.03 and a twelve month high of $67.57.

KB Home (NYSE:KBH - Get Free Report) last announced its quarterly earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.88 by $0.17. The firm had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.30 billion. KB Home had a net margin of 4.94% and a return on equity of 7.67%. The firm's quarterly revenue was down 20.0% on a year-over-year basis. During the same period last year, the firm posted $1.61 EPS. As a group, sell-side analysts anticipate that KB Home will post 3.27 EPS for the current fiscal year.

Insider Activity at KB Home

In other KB Home news, EVP Albert Praw sold 22,015 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total value of $1,292,280.50. Following the transaction, the executive vice president directly owned 104,062 shares of the company's stock, valued at approximately $6,108,439.40. This trade represents a 17.46% 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. Also, Director Arthur Collins sold 4,000 shares of the firm's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $56.96, for a total value of $227,840.00. Following the completion of the transaction, the director owned 9,157 shares in the company, valued at $521,582.72. This represents a 30.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 4.69% of the company's stock.

Institutional Investors Weigh In On KB Home

Several hedge funds have recently bought and sold shares of the company. Van Hulzen Asset Management LLC acquired a new stake in KB Home during the 2nd quarter worth $563,000. Engineers Gate Manager LP acquired a new stake in shares of KB Home during the second quarter worth about $658,000. Integrated Wealth Concepts LLC bought a new position in shares of KB Home during the 2nd quarter valued at about $73,000. Nykredit A S bought a new position in shares of KB Home during the 2nd quarter valued at about $152,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of KB Home in the 2nd quarter valued at approximately $1,609,000. 96.09% of the stock is currently owned by institutional investors and hedge funds.

More KB Home News

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

• Positive Sentiment: KB Home reported third-quarter adjusted earnings of $1.05 per share, beating the $0.88 analyst consensus. The company also repurchased $50 million of stock, and its ending backlog increased 3% in value to $2.05 billion. KB Home Reports 2026 Third Quarter Results
• Positive Sentiment: The company’s built-to-order strategy helped support profitability, with quarterly housing gross margin of 16.5%. The earnings beat and resilient backlog provide some support for the shares despite broader housing-market weakness. KB Home Q3 Earnings Top Consensus
• Neutral Sentiment: Analysts remain divided. Wells Fargo maintained a Sell rating with a $50 price target, while Bank of America reiterated Hold with a $54 target, citing softer demand and a weaker outlook. Wells Fargo Maintains Sell Rating
• Negative Sentiment: Revenue fell 20% year over year to $1.30 billion, net income dropped to $65.3 million from $109.8 million, and deliveries declined 19% to 2,732 homes. Net orders also fell 12%, signaling continued pressure from elevated mortgage rates and cautious buyers. KB Home Q3 Revenue Falls 20 Percent
• Negative Sentiment: KB Home reduced its full-year gross-margin outlook to 16.0%-16.2% from 16.1%-16.5%. Investors were also unsettled by a softer fourth-quarter and full-year sales outlook, which suggests pricing incentives and financing costs may continue to weigh on profitability. KB Home Cuts Margin Outlook

About KB Home

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.

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