Zacks Research Comments on KB Home's Q3 Earnings (NYSE:KBH)

Key Points

• Zacks Research cut KB Home’s Q3 2026 EPS estimate to $0.86 from $0.87 and maintains a “Strong Sell” rating. Its full-year 2026 consensus EPS estimate is $3.27.
• KB Home’s latest quarterly results slightly missed expectations, with EPS of $0.43 versus $0.44 expected, while revenue reached $1.11 billion; revenue fell 27.3% year over year and EPS declined from $1.50.
• The stock opened at $47.08, below its 50-day and 200-day moving averages, while analysts overall rate it “Hold” with a consensus price target of $59.92. KB Home continues to pay a $0.25 quarterly dividend, yielding about 2.1%.

KB Home (NYSE:KBH - Free Report) - Analysts at Zacks Research dropped their Q3 2026 EPS estimates for shares of KB Home in a research report issued on Friday, September 18th. Zacks Research analyst Team now forecasts that the construction company will earn $0.86 per share for the quarter, down from their prior estimate of $0.87. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for KB Home's current full-year earnings is $3.27 per share. Zacks Research also issued estimates for KB Home's Q3 2027 earnings at $1.01 EPS, FY2027 earnings at $4.09 EPS, Q3 2028 earnings at $1.34 EPS and FY2028 earnings at $5.12 EPS.

KB Home (NYSE:KBH - Get Free Report) last posted its earnings results on Tuesday, June 23rd. The construction company reported $0.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.01). KB Home had a return on equity of 7.67% and a net margin of 4.94%.The firm had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.09 billion. During the same quarter in the prior year, the company earned $1.50 earnings per share. The business's revenue for the quarter was down 27.3% compared to the same quarter last year.

Several other research firms have also issued reports on KBH. Truist Financial dropped their price objective on KB Home from $56.00 to $55.00 and set a "hold" rating for the company in a research note on Wednesday. Citizens Jmp restated a "market outperform" rating and issued a $77.00 target price on shares of KB Home in a research note on Thursday, September 10th. Barclays raised their price target on KB Home from $56.00 to $57.00 and gave the company an "overweight" rating in a report on Thursday, June 25th. UBS Group lifted their price target on KB Home from $63.00 to $66.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $53.00 price objective on shares of KB Home in a report on Wednesday, June 24th. Four equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, KB Home currently has an average rating of "Hold" and a consensus target price of $59.92.

KB Home Price Performance

KBH opened at $47.08 on Monday. The firm has a market capitalization of $2.89 billion, a P/E ratio of 16.40, a price-to-earnings-growth ratio of 2.43 and a beta of 1.34. KB Home has a one year low of $44.03 and a one year high of $67.57. The company has a fifty day moving average price of $54.45 and a 200-day moving average price of $53.61.

KB Home Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Thursday, August 6th were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date was Thursday, August 6th. KB Home's payout ratio is presently 34.84%.

Insiders Place Their Bets

In other 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 sale, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Albert Praw sold 22,015 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the transaction, the executive vice president directly owned 104,062 shares in the company, valued at approximately $6,108,439.40. This represents a 17.46% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.69% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of KBH. Eastern Bank bought a new stake in shares of KB Home in the 2nd quarter valued at about $26,000. Bessemer Group Inc. grew its position in KB Home by 80.0% during the 1st quarter. Bessemer Group Inc. now owns 495 shares of the construction company's stock worth $26,000 after acquiring an additional 220 shares during the last quarter. Ameritas Advisory Services LLC purchased a new position in KB Home in the 2nd quarter worth approximately $46,000. Rothschild Investment LLC increased its stake in KB Home by 391.0% in the 4th 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 period. Finally, Integrated Wealth Concepts LLC bought a new stake in KB Home in the second quarter valued at approximately $73,000. 96.09% of the stock is owned by institutional investors.

More KB Home News

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

• Positive Sentiment: KB Home is scheduled to report third-quarter results tomorrow, giving investors a near-term opportunity for a positive surprise if earnings, revenue, orders, margins or management guidance exceed expectations. Earnings To Watch: KB Home Reports Q3 Results Tomorrow
• Neutral Sentiment: An investor-focused article examines ways to potentially generate $500 per month from KB Home stock ahead of the earnings announcement. Such income-oriented strategies may attract attention, but the report itself does not identify a fundamental change in the company’s outlook. How To Earn $500 A Month From KB Home Stock Ahead Of Q3 Earnings
• Negative Sentiment: Zacks Research downgraded KB Home from “Hold” to “Strong Sell,” creating a significant negative signal ahead of the quarterly report. Zacks Research Downgrade Report
• Negative Sentiment: Zacks made small reductions to its KBH EPS forecasts: third-quarter 2026 earnings to $0.86 from $0.87, fiscal 2027 earnings to $4.09 from $4.10, third-quarter 2027 earnings to $1.01 from $1.02, third-quarter 2028 earnings to $1.34 from $1.35, and fiscal 2028 earnings to $5.12 from $5.13. Although the cuts are modest, they indicate slightly softer expectations. Zacks still listed a “Hold” rating in its detailed estimate notes.

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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