Stonex Financia Upgrades KB Home (NYSE:KBH) to "Hold"

Key Points

• StoneX upgraded KB Home to a “Hold” rating, aligning with the broader analyst consensus. Nine analysts rate the stock Hold, compared with four Buys and four Sells, and the average price target is $52.23.
• KB Home shares traded near $43.27, well below the 50-day and 200-day moving averages of $49.98 and $52.33. The stock has declined amid weaker results, with quarterly revenue down 20% year over year despite EPS exceeding estimates.
• Recent sentiment remains mixed: RBC Capital cut its price target to $47, while institutional investors—including BlackRock—established or increased positions. Meanwhile, two company insiders sold shares, and institutional investors own 96.09% of KB Home.

KB Home (NYSE:KBH - Get Free Report) was upgraded by investment analysts at Stonex Financia to a "hold" rating in a research note issued on Thursday, Zacks reports.

Other equities analysts have also recently issued research reports about the company. Truist Financial cut their price objective on KB Home from $55.00 to $50.00 and set a "hold" rating for the company in a research report on Wednesday, September 23rd. UBS Group reaffirmed a "buy" rating on shares of KB Home in a research report on Wednesday, September 23rd. Citigroup reiterated an "outperform" rating on shares of KB Home in a research report on Wednesday, September 23rd. Wall Street Zen cut KB Home from a "hold" rating to a "sell" rating in a research report on Saturday, October 3rd. Finally, Bank of America dropped their price objective on shares of KB Home from $56.00 to $54.00 and set a "neutral" rating for the company in a report on Wednesday, September 23rd. Four analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, KB Home currently has an average rating of "Hold" and an average target price of $52.23.

KB Home Price Performance

NYSE:KBH traded down $0.38 during mid-day trading on Thursday, reaching $43.27. The stock had a trading volume of 1,194,852 shares, compared to its average volume of 1,851,499. The stock has a market cap of $2.63 billion, a P/E ratio of 12.19, a PEG ratio of 2.26 and a beta of 1.34. The business's 50 day moving average is $49.98 and its 200 day moving average is $52.33. KB Home has a fifty-two week low of $40.92 and a fifty-two week high of $67.57.

KB Home (NYSE:KBH - Get Free Report) last posted 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. The company 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 4.39% and a return on equity of 6.56%. The company's revenue for the quarter was down 20.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.61 earnings per share. Equities analysts expect that KB Home will post 3.27 EPS for the current year.

Insiders Place Their Bets

In related news, Director Arthur Collins sold 4,000 shares of the company's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total value of $227,840.00. Following the completion of the transaction, the director directly owned 9,157 shares of the company's stock, valued at approximately $521,582.72. This represents a 30.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Albert Z. Praw sold 22,015 shares of the company's stock in a transaction dated 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 transaction, the executive vice president directly owned 104,062 shares of the company's stock, valued at $6,108,439.40. This represents a 17.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 4.69% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in shares of KB Home in the 2nd quarter valued at approximately $618,489,000. Donald Smith & CO. Inc. bought a new position in KB Home during the second quarter worth about $108,652,000. Bamco Inc. NY acquired a new stake in shares of KB Home in the second quarter valued at approximately $37,500,000. Bank of New York Mellon Corp acquired a new position in KB Home in the 2nd quarter valued at $35,837,000. Finally, Bank of America Corp DE bought a new position in shares of KB Home in the second quarter worth $35,377,000. Institutional investors and hedge funds own 96.09% of the company's stock.

KB Home News Roundup

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

• Positive Sentiment: Zacks Research raised its KB Home EPS estimates for fiscal 2027 to $4.11 from $4.09, Q3 2027 to $1.08 from $1.01, and Q3 2028 to $1.37 from $1.34. The upward revisions suggest somewhat better expected earnings, although Zacks still rates the stock “Strong Sell.” KB Home Stock Gets Stronger EPS Forecast from Zacks Research
• Neutral Sentiment: StoneX initiated coverage of KB Home, along with Toll Brothers and D.R. Horton. The article does not provide enough detail on its rating or price target to determine the likely market impact. StoneX initiates coverage of Toll Brothers, D.R. Horton, KB Home
• Neutral Sentiment: A comparison article discusses KB Home versus Lifetime Brands, but it does not appear to contain a new company-specific operating update or catalyst for KB Home. Critical Comparison: Lifetime Brands vs. KB Home
• Negative Sentiment: RBC Capital lowered its KB Home price target to $47 from $50 while maintaining a “Sector Perform” rating. Although the revised target remains above the recent trading level, the reduction signals more limited expected upside and is likely weighing on sentiment. RBC Capital Adjusts Price Target on KB Home

KB Home Company Profile

KB Home is a national homebuilder that designs, constructs and sells single-family homes and townhomes. The company offers homes in a range of floor plans, sizes and price points, with options that allow buyers to personalize features and finishes. Its communities typically include amenities such as parks, open spaces and other neighborhood improvements.

Founded in 1957, KB Home is headquartered in Los Angeles, California. The company serves residential markets across the United States, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.

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