Citizens Jmp Has Lowered Expectations for KB Home (NYSE:KBH) Stock Price

Key Points

• Citizens Jmp lowered KB Home’s price target to $70 from $77 while maintaining a “market outperform” rating, implying roughly 44% upside from the stock’s $48.62 price.
• Analyst sentiment remains mixed: KB Home has a consensus “Hold” rating and an average price target of $58.50, with four Buy ratings, nine Holds, and two Sells.
• KB Home beat quarterly EPS expectations, reporting $1.05 versus the $0.88 consensus, but revenue fell 20% year over year to $1.30 billion and deliveries and net orders also declined amid housing-market pressure.

KB Home (NYSE:KBH - Get Free Report) had its price target cut by stock analysts at Citizens Jmp from $77.00 to $70.00 in a report released on Wednesday, Benzinga reports. The firm presently has a "market outperform" rating on the construction company's stock. Citizens Jmp's price objective points to a potential upside of 43.97% from the stock's current price.

A number of other brokerages also recently commented on KBH. Zacks Research downgraded shares of KB Home from a "hold" rating to a "strong sell" rating in a research report on Thursday, September 17th. Citigroup reiterated an "outperform" rating on shares of KB Home in a research report on Wednesday. Royal Bank Of Canada restated a "sector perform" rating and set a $53.00 price target on shares of KB Home in a report on Wednesday, June 24th. Truist Financial dropped their price target on shares of KB Home from $56.00 to $55.00 and set a "hold" rating on the stock in a research note on Wednesday, September 16th. Finally, Bank of America cut their price objective on KB Home from $56.00 to $54.00 and set a "neutral" rating for the company in a report on Wednesday. Four investment 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. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $58.50.

KB Home Stock Performance

NYSE KBH opened at $48.62 on Wednesday. The business's fifty day moving average is $54.18 and its two-hundred day moving average is $53.44. The stock has a market capitalization of $2.98 billion, a P/E ratio of 16.94, a P/E/G ratio of 2.47 and a beta of 1.34. KB Home has a 1 year low of $44.03 and a 1 year high of $67.57.

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

Insider Activity

In other news, Director Arthur Collins sold 4,000 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $56.96, for a total transaction of $227,840.00. Following the completion of the transaction, the director owned 9,157 shares of the company's stock, valued at approximately $521,582.72. This represents a 30.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Albert Z. Praw sold 22,015 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $58.70, for a total value of $1,292,280.50. Following the completion of the sale, the executive vice president owned 104,062 shares of the company's stock, valued at $6,108,439.40. This represents a 17.46% decrease in their position. The SEC filing for this sale provides additional information. 4.69% of the stock is currently owned by insiders.

Institutional Investors Weigh In On KB Home

Several large investors have recently modified their holdings of KBH. Eastern Bank bought a new stake in KB Home in the second quarter valued at $26,000. Bessemer Group Inc. grew its stake in KB Home by 80.0% during the first quarter. Bessemer Group Inc. now owns 495 shares of the construction company's stock worth $26,000 after buying an additional 220 shares during the last quarter. Ameritas Advisory Services LLC acquired a new stake in KB Home during the 2nd quarter valued at $46,000. Rothschild Investment LLC grew its holdings in shares of KB Home by 391.0% during the fourth quarter. Rothschild Investment LLC now owns 820 shares of the construction company's stock worth $46,000 after purchasing an additional 653 shares during the last quarter. Finally, Integrated Wealth Concepts LLC bought a new position in shares of KB Home in the second quarter valued at about $73,000. 96.09% of the stock is currently owned by institutional investors.

Trending Headlines about KB Home

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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