KB Home (NYSE:KBH) Shares Gap Up - Here's Why

Key Points

• KB Home shares jumped after the company reported quarterly revenue of $1.11 billion, which topped analyst expectations and came in at or above the midpoint of guidance ranges.
• Profitability remained under pressure, with adjusted EPS of $0.43 slightly below consensus and far under the $1.50 earned a year earlier, while revenue fell 27.3% year over year.
• The company also repurchased $75 million of stock, but management narrowed its full-year outlook, signaling that housing-market weakness is still weighing on demand.

KB Home (NYSE:KBH - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $52.73, but opened at $56.70. KB Home shares last traded at $61.2790, with a volume of 791,788 shares trading hands.

KB Home News Summary

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

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on KBH. The Goldman Sachs Group lowered their target price on shares of KB Home from $65.00 to $56.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 25th. Weiss Ratings cut shares of KB Home from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, May 7th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $53.00 price target on shares of KB Home in a research note on Wednesday. Truist Financial lowered their price target on shares of KB Home from $54.00 to $50.00 and set a "hold" rating on the stock in a research report on Monday, May 4th. Finally, Wells Fargo & Company upped their price objective on shares of KB Home from $50.00 to $52.00 and gave the company an "underweight" rating in a research note on Wednesday. Four equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, KB Home currently has an average rating of "Hold" and an average price target of $59.58.

KB Home Stock Up 15.5%

The stock has a market cap of $3.81 billion, a PE ratio of 15.48, a P/E/G ratio of 9.27 and a beta of 1.37. The stock has a 50-day moving average of $51.24 and a 200 day moving average of $56.03.

KB Home (NYSE:KBH - Get Free Report) last released its quarterly earnings data 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). The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.09 billion. KB Home had a return on equity of 9.63% and a net margin of 5.96%.The business's quarterly revenue was down 27.3% on a year-over-year basis. During the same period last year, the firm posted $1.50 EPS. Research analysts forecast that KB Home will post 3.1 EPS for the current fiscal year.

KB Home Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Thursday, May 7th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, May 7th. This represents a $1.00 annualized dividend and a dividend yield of 1.6%. KB Home's payout ratio is presently 25.38%.

Institutional Investors Weigh In On KB Home

Hedge funds and other institutional investors have recently bought and sold shares of the company. Bessemer Group Inc. boosted its holdings in KB Home by 80.0% in the 1st quarter. Bessemer Group Inc. now owns 495 shares of the construction company's stock valued at $26,000 after purchasing an additional 220 shares during the last quarter. First Horizon Corp increased its holdings in shares of 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 buying an additional 322 shares during the last quarter. Parkside Financial Bank & Trust increased its holdings 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 last quarter. Fulcrum Asset Management LLP purchased a new stake in shares of KB Home during the 3rd quarter valued at approximately $36,000. Finally, Aventura Private Wealth LLC purchased a new stake in shares of KB Home during the 4th quarter valued at approximately $46,000. 96.09% of the stock is currently owned by institutional investors and hedge funds.

KB Home Company Profile

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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