Wall Street Zen Downgrades KB Home (NYSE:KBH) to Sell

Key Points

• Wall Street Zen downgraded KB Home from a "hold" to a "sell" and several major brokers cut price targets or downgraded ratings, though the MarketBeat consensus remains a "Hold" with an average price target of $59.50 (3 Buys, 10 Holds, 2 Sells).
• Earnings slump: KB Home's latest quarter delivered $0.52 EPS (in line with estimates) and $1.08B revenue, but revenue was down 22.6% year‑over‑year and EPS fell from $1.49, raising concerns that dividends and buybacks could be at risk.
• Shares opened at $51.63 with a market cap of $3.22B and a P/E of 13.1; the stock has traded between $48.17 and $68.71 over the past year and its 50‑day moving average ($57.50) sits below the 200‑day ($59.84), reflecting recent weakness.

KB Home (NYSE:KBH - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

Several other research firms have also weighed in on KBH. The Goldman Sachs Group cut their target price on KB Home from $65.00 to $56.00 and set a "neutral" rating on the stock in a report on Wednesday, March 25th. Royal Bank Of Canada cut their target price on KB Home from $54.00 to $53.00 and set a "sector perform" rating on the stock in a report on Wednesday, March 25th. Wells Fargo & Company cut their target price on KB Home from $55.00 to $50.00 and set an "underweight" rating on the stock in a report on Wednesday, March 25th. Keefe, Bruyette & Woods cut their target price on KB Home from $67.00 to $62.00 and set a "market perform" rating on the stock in a report on Tuesday, December 23rd. Finally, Raymond James Financial lowered KB Home from an "outperform" rating to a "market perform" rating in a report on Wednesday, December 24th. Three analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $59.50.

KB Home Price Performance

KBH opened at $51.63 on Friday. The stock has a market cap of $3.22 billion, a price-to-earnings ratio of 13.10, a PEG ratio of 8.75 and a beta of 1.50. KB Home has a 1 year low of $48.17 and a 1 year high of $68.71. The company has a current ratio of 2.20, a quick ratio of 0.20 and a debt-to-equity ratio of 0.43. The stock has a fifty day moving average price of $57.50 and a 200 day moving average price of $59.84.

KB Home (NYSE:KBH - Get Free Report) last posted its earnings results on Tuesday, March 24th. The construction company reported $0.52 earnings per share for the quarter, meeting the consensus estimate of $0.52. KB Home had a return on equity of 9.63% and a net margin of 5.96%.The company had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.10 billion. During the same period last year, the company earned $1.49 earnings per share. The business's revenue was down 22.6% compared to the same quarter last year. Analysts forecast that KB Home will post 8.42 EPS for the current fiscal year.

Hedge Funds Weigh In On KB Home

A number of institutional investors have recently made changes to their positions in the business. Hsbc Holdings PLC increased its stake in shares of KB Home by 953.9% in the fourth quarter. Hsbc Holdings PLC now owns 33,776 shares of the construction company's stock worth $1,920,000 after purchasing an additional 30,571 shares during the period. Rockefeller Capital Management L.P. raised its position in shares of KB Home by 15.4% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,275 shares of the construction company's stock valued at $128,000 after buying an additional 304 shares during the last quarter. Corient Private Wealth LLC raised its position in shares of KB Home by 7.2% during the fourth quarter. Corient Private Wealth LLC now owns 23,485 shares of the construction company's stock valued at $1,325,000 after buying an additional 1,575 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in shares of KB Home by 376,300.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,764 shares of the construction company's stock valued at $212,000 after buying an additional 3,763 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV grew its position in KB Home by 3.6% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 66,753 shares of the construction company's stock worth $3,766,000 after buying an additional 2,347 shares in the last quarter. 96.09% of the stock is currently owned by institutional investors.

More KB Home News

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

• Positive Sentiment: KB Home opened "Meriden," a new master‑planned community in Henderson, NV — five neighborhoods priced from the mid‑$300Ks, with on‑site amenities and proximity to schools and shopping. This supports future revenue/backlog potential in a sellable price band. KB HOME OPENS MERIDEN, A NEW MASTER-PLANNED COMMUNITY IN A PRIME HENDERSON, NEVADA LOCATION
• Neutral Sentiment: KB Home is a trending ticker on Zacks — increased retail/investor attention can raise volume and short‑term volatility, but does not by itself change fundamentals. KB Home (KBH) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Zacks Research issued a sweeping set of cuts to KBH’s quarterly and annual EPS forecasts and carries a "Strong Sell" stance — trimming FY2026–FY2028 and multiple quarter estimates materially. Those downward revisions signal weaker near‑term earnings and likely explain selling pressure on the stock. MarketBeat / Zacks summary of KB Home analyst cuts

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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