Zacks Research Has Negative Forecast for KB Home Q3 Earnings

KB Home (NYSE:KBH - Free Report) - Stock analysts at Zacks Research cut their Q3 2025 earnings per share estimates for shares of KB Home in a research report issued to clients and investors on Monday, July 7th. Zacks Research analyst S. Mukherjee now forecasts that the construction company will post earnings of $1.54 per share for the quarter, down from their prior estimate of $1.94. The consensus estimate for KB Home's current full-year earnings is $8.42 per share. Zacks Research also issued estimates for KB Home's FY2025 earnings at $6.64 EPS, Q1 2026 earnings at $1.25 EPS, Q3 2026 earnings at $1.74 EPS, Q4 2026 earnings at $2.13 EPS, FY2026 earnings at $6.63 EPS, Q1 2027 earnings at $1.44 EPS and FY2027 earnings at $7.53 EPS.

KB Home (NYSE:KBH - Get Free Report) last announced its quarterly earnings results on Monday, June 23rd. The construction company reported $1.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.45 by $0.05. KB Home had a return on equity of 14.02% and a net margin of 8.47%. The company had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.51 billion. During the same quarter in the previous year, the firm posted $2.15 EPS. The firm's quarterly revenue was down 10.5% on a year-over-year basis.

A number of other research analysts have also issued reports on KBH. Keefe, Bruyette & Woods reduced their price target on KB Home from $65.00 to $58.00 and set a "market perform" rating for the company in a research report on Thursday, June 26th. Bank of America cut their price objective on KB Home from $58.00 to $54.00 and set a "neutral" rating for the company in a report on Tuesday, June 24th. UBS Group cut their price objective on KB Home from $86.00 to $80.00 and set a "buy" rating for the company in a report on Tuesday, June 24th. Royal Bank Of Canada cut their price objective on KB Home from $67.00 to $63.00 and set a "sector perform" rating for the company in a report on Tuesday, March 25th. Finally, Evercore ISI cut their price objective on KB Home from $77.00 to $70.00 and set an "outperform" rating for the company in a report on Tuesday, June 24th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, three have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $66.14.

KB Home Stock Performance

KBH stock traded down $0.56 during trading on Thursday, reaching $55.62. 1,366,732 shares of the company's stock were exchanged, compared to its average volume of 1,321,515. The company has a quick ratio of 0.60, a current ratio of 5.83 and a debt-to-equity ratio of 0.47. KB Home has a 1-year low of $48.90 and a 1-year high of $89.70. The company's fifty day moving average price is $53.17 and its 200-day moving average price is $58.26. The firm has a market cap of $3.78 billion, a PE ratio of 7.37, a P/E/G ratio of 4.47 and a beta of 1.34.

KB Home Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Stockholders of record on Thursday, August 7th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.80%. The ex-dividend date of this dividend is Thursday, August 7th. KB Home's dividend payout ratio is 13.25%.

Insider Activity at KB Home

In other news, Director Arthur Reginald Collins sold 5,000 shares of the company's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $54.38, for a total transaction of $271,900.00. Following the completion of the sale, the director directly owned 10,262 shares of the company's stock, valued at $558,047.56. This represents a 32.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 3.89% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of KBH. Norges Bank acquired a new position in KB Home during the fourth quarter valued at $49,638,000. Two Sigma Advisers LP raised its position in KB Home by 4,408.6% during the fourth quarter. Two Sigma Advisers LP now owns 523,000 shares of the construction company's stock valued at $34,372,000 after buying an additional 511,400 shares during the period. AQR Capital Management LLC raised its position in KB Home by 116.1% during the first quarter. AQR Capital Management LLC now owns 942,479 shares of the construction company's stock valued at $53,957,000 after buying an additional 506,415 shares during the period. First Trust Advisors LP raised its position in KB Home by 61.2% during the fourth quarter. First Trust Advisors LP now owns 1,327,809 shares of the construction company's stock valued at $87,264,000 after buying an additional 503,895 shares during the period. Finally, Two Sigma Investments LP raised its position in KB Home by 1,136.2% during the fourth quarter. Two Sigma Investments LP now owns 423,341 shares of the construction company's stock valued at $27,822,000 after buying an additional 389,097 shares during the period. 96.09% of the stock is owned by institutional investors and hedge funds.

About KB Home

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.