KB Home (NYSE:KBH) Given Sector Perform Rating at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated a sector perform rating on KB Home and set a $53 price target, implying about 13.7% downside from the previous close.
• Analyst sentiment remains mixed but cautious: KB Home’s average rating is Hold, with an average price target of $59.58 after several firms recently cut targets or downgraded the stock.
• KB Home’s latest results showed softer profitability, with EPS of $0.43 missing estimates and revenue down 27.3% year over year, even though quarterly revenue slightly beat expectations and the company repurchased $75 million in stock.

KB Home (NYSE:KBH - Get Free Report)'s stock had its "sector perform" rating reissued by analysts at Royal Bank Of Canada in a report issued on Wednesday,Benzinga reports. They presently have a $53.00 price objective on the construction company's stock. Royal Bank Of Canada's target price points to a potential downside of 13.68% from the stock's previous close.

A number of other equities research analysts have also recently commented on the company. Truist Financial decreased their price target on KB Home from $54.00 to $50.00 and set a "hold" rating for the company in a research note on Monday, May 4th. Weiss Ratings lowered KB Home from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, May 7th. Citizens Jmp reissued a "market outperform" rating and set a $77.00 price target on shares of KB Home in a research report on Wednesday. Bank of America decreased their price objective on shares of KB Home from $63.00 to $56.00 and set a "neutral" rating for the company in a research note on Wednesday, March 25th. Finally, Wall Street Zen cut shares of KB Home from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Four analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $59.58.

KB Home Stock Performance

KBH stock traded up $8.67 during mid-day trading on Wednesday, reaching $61.40. 1,072,974 shares of the stock traded hands, compared to its average volume of 1,183,944. The stock has a market capitalization of $3.85 billion, a PE ratio of 15.51, a PEG ratio of 9.27 and a beta of 1.37. KB Home has a one year low of $44.03 and a one year high of $68.71. The business has a 50-day moving average price of $51.24 and a two-hundred day moving average price of $56.03.

KB Home (NYSE:KBH - Get Free Report) last issued its earnings results on Tuesday, June 23rd. The construction company reported $0.43 earnings per share for the quarter, missing analysts' consensus estimates of $0.44 by ($0.01). KB Home had a net margin of 5.96% and a return on equity of 9.63%. The firm had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same period last year, the firm earned $1.50 earnings per share. The company's revenue for the quarter was down 27.3% on a year-over-year basis. On average, equities analysts expect that KB Home will post 3.1 earnings per share for the current fiscal year.

Hedge Funds Weigh In On KB Home

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Xponance Inc. boosted its position in shares of KB Home by 1.6% during the 3rd quarter. Xponance Inc. now owns 10,198 shares of the construction company's stock valued at $649,000 after purchasing an additional 163 shares in the last quarter. Vista Investment Management raised its holdings in shares of KB Home by 3.5% in the 4th quarter. Vista Investment Management now owns 5,117 shares of the construction company's stock worth $289,000 after acquiring an additional 175 shares during the last quarter. GHE LLC increased its holdings in KB Home by 0.7% during the 3rd quarter. GHE LLC now owns 30,983 shares of the construction company's stock worth $1,972,000 after purchasing an additional 212 shares in the last quarter. Bessemer Group Inc. boosted its holdings 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 purchasing an additional 220 shares during the last quarter. Finally, Parkside Financial Bank & Trust grew its position in KB Home by 73.1% during the fourth quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company's stock valued at $33,000 after buying an additional 250 shares during the period. Institutional investors and hedge funds own 96.09% of the company's stock.

More KB Home News

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

• Positive Sentiment: KB Home reported Q2 revenue of $1.11 billion, above analyst expectations, and said results met or exceeded the midpoint of its guidance ranges. KB HOME REPORTS 2026 SECOND QUARTER RESULTS
• Positive Sentiment: The company also repurchased $75 million of common stock, a sign management remains confident in the business and shareholder returns. KB HOME REPORTS 2026 SECOND QUARTER RESULTS
• Neutral Sentiment: Adjusted profitability was softer: EPS came in at $0.43, slightly below the $0.44 consensus and well below the $1.50 earned a year ago, reflecting a weaker housing backdrop. KB Home: Fiscal Q2 Earnings Snapshot
• Negative Sentiment: Revenue still fell 27.3% year over year, and management narrowed its full-year outlook, reinforcing concerns that demand remains pressured by a difficult housing market. KB Home Reports Lower Revenue as Difficult Housing Market Persists

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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