Bank of America Issues Pessimistic Forecast for KB Home (NYSE:KBH) Stock Price

Key Points

• Bank of America cut its price target on KB Home from $63 to $56 and kept a "neutral" rating, while the analyst consensus remains a Hold with a $62.92 average target.
• Q1 results showed revenue down about 23% year-over-year to $1.08 billion and EPS of $0.52 (a $0.01 miss), and KB Home trimmed full-year housing revenue guidance to $4.80B–$5.50B, citing geopolitical uncertainty.
• Management repurchased $50 million of stock in Q1 and is shifting toward roughly 70% built-to-order deliveries to try to improve margins in H2 2026.

KB Home (NYSE:KBH - Get Free Report) had its price target reduced by research analysts at Bank of America from $63.00 to $56.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "neutral" rating on the construction company's stock. Bank of America's price objective would indicate a potential upside of 5.60% from the company's previous close.

A number of other analysts also recently commented on the company. Keefe, Bruyette & Woods reduced their price objective on KB Home from $67.00 to $62.00 and set a "market perform" rating for the company in a research report on Tuesday, December 23rd. Barclays lowered their price objective on KB Home from $71.00 to $62.00 and set an "overweight" rating on the stock in a research report on Monday, December 22nd. Citizens Jmp assumed coverage on KB Home in a research report on Tuesday. They issued an "outperform" rating and a $77.00 target price for the company. Zacks Research downgraded shares of KB Home from a "hold" rating to a "strong sell" rating in a research note on Tuesday, December 23rd. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of KB Home in a report on Thursday, January 22nd. Three investment 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 data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $62.92.

KB Home Trading Down 0.3%

NYSE:KBH opened at $53.03 on Wednesday. The company's 50 day moving average is $59.74 and its 200-day moving average is $61.07. The company has a quick ratio of 0.53, a current ratio of 5.77 and a debt-to-equity ratio of 0.43. KB Home has a 12 month low of $48.90 and a 12 month high of $68.71. The firm has a market cap of $3.35 billion, a price-to-earnings ratio of 10.80, a P/E/G ratio of 7.07 and a beta of 1.47.

KB Home (NYSE:KBH - Get Free Report) last announced its earnings results on Tuesday, March 24th. The construction company reported $0.52 earnings per share for the quarter, missing the consensus estimate of $0.53 by ($0.01). KB Home had a net margin of 6.88% and a return on equity of 11.40%. The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter in the previous year, the company earned $1.49 EPS. KB Home's revenue for the quarter was down 22.6% compared to the same quarter last year. Equities analysts anticipate that KB Home will post 8.42 EPS for the current year.

Institutional Trading of KB Home

Hedge funds and other institutional investors have recently made changes to their positions in the business. First Horizon Corp raised its holdings in KB Home by 178.9% during the 4th quarter. First Horizon Corp now owns 502 shares of the construction company's stock worth $28,000 after purchasing an additional 322 shares during the last quarter. Parkside Financial Bank & Trust grew its position in shares of KB Home by 73.1% during the 4th quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company's stock worth $33,000 after buying an additional 250 shares during the period. Fulcrum Asset Management LLP bought a new stake in shares of KB Home during the third quarter worth approximately $36,000. Aventura Private Wealth LLC bought a new stake in shares of KB Home during the fourth quarter worth approximately $46,000. Finally, Rothschild Investment LLC lifted its holdings in KB Home by 391.0% in the fourth quarter. Rothschild Investment LLC now owns 820 shares of the construction company's stock valued at $46,000 after buying an additional 653 shares during the period. 96.09% of the stock is currently owned by institutional investors and hedge funds.

Key KB Home News

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

• Positive Sentiment: Citizens / JMP initiated coverage with a Market Outperform and $77 price target, a bullish call that signals a sizable upside vs. current levels and may attract buyers. Citizens Initiates Coverage of KB Home (KBH) with Market Outperform Recommendation
• Positive Sentiment: KBH outlined a move to ~70% built-to-order deliveries to improve H2 2026 margins — a strategic execution shift that could lift future profitability if demand stabilizes. Kb Home outlines shift to 70-percent built-to-order deliveries
• Positive Sentiment: KB Home repurchased $50 million of common stock in Q1, indicating management support for the share price and returning capital to shareholders. KB HOME REPORTS 2026 FIRST QUARTER RESULTS
• Neutral Sentiment: Some outlets note Q1 EPS of $0.52 was effectively in line with certain consensus estimates (small beat/miss debate among services), so headline earnings weren’t dramatically off consensus for all models. KB Home (KBH) Q1 Earnings Meet Estimates
• Neutral Sentiment: Management held an earnings call and provided slides/colour on order trends and execution; these materials offer detail for investors weighing whether the build-to-order pivot and backlog metrics offset softer demand. KB Home (KBH) Q1 2026 Earnings Call Highlights
• Negative Sentiment: Q1 revenue fell ~23% YoY to $1.08B and EPS $0.52 missed/was marginally below some consensus; weaker top-line performance increases near-term growth concerns. KBH Earnings: KB Homes’ Financial Results Miss Wall Street Targets Across the Board
• Negative Sentiment: KB Home cut full-year housing revenue guidance to $4.80B–$5.50B and cited geopolitical (Middle East) uncertainty dampening buyer confidence — a direct driver of the stock decline. KB Home Cuts Guidance as Middle East Instability Adds to Homebuyers' Caution
• Negative Sentiment: Several sell-side firms reacted: Bank of America kept a Hold and cut its PT to $56, and Wells Fargo reiterated a Sell while cutting its PT to $50 — analyst downgrades/lower targets increase selling pressure. KB Home: Near-Term Headwinds Temper Outlook (BofA) KB Home: Sell Rating (Wells Fargo)

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.

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