KB Home (NYSE:KBH) Sets New 12-Month Low – What’s Next?

KB Home (NYSE:KBH – Get Free Report) reached a new 52-week low on Tuesday. The stock traded as low as $41.57 and last traded at $41.6520, with a volume of 1,379,557 shares. The stock had previously closed at $43.13.

More KB Home News

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

  • Neutral Sentiment: KB Home’s board approved new executive long-term incentive awards on October 8. The grants may help align management with long-term shareholder performance, but the announcement does not provide a material change to operations or financial guidance. KB Home Updates Executive Long-Term Incentive Awards
  • Neutral Sentiment: Wall Street brokerages maintained a “Hold” rating on KB Home, suggesting limited conviction that the shares will generate near-term upside. KB Home Stock Rated Hold by Wall Street Brokerages
  • Negative Sentiment: Zacks Research lowered its EPS forecasts for multiple periods, including Q4 2026 to $1.21 from $1.30, Q1 2027 to $0.63 from $0.65, Q2 2027 to $0.80 from $0.82, Q4 2027 to $1.60 from $1.61, Q1 2028 to $0.87 from $0.94, Q2 2028 to $1.07 from $1.12, and fiscal 2028 to $5.03 from $5.12.
  • Negative Sentiment: Zacks assigned KBH a “Strong Sell” rating. Although it raised its fiscal 2026 EPS estimate to $3.21 from $3.11, that remains below the broader $3.25 consensus, while the reductions across future quarters point to softer expected earnings momentum. KB Home analyst estimate revisions

Analyst Upgrades and Downgrades

KBH has been the topic of a number of research analyst reports. Royal Bank Of Canada reaffirmed a “market perform” rating on shares of KB Home in a report on Wednesday, September 23rd. Keefe, Bruyette & Woods dropped their price target on KB Home from $65.00 to $54.00 and set a “market perform” rating on the stock in a research report on Monday, October 5th. Evercore set a $59.00 price target on KB Home in a report on Wednesday, September 23rd. Barclays cut their price target on KB Home from $57.00 to $49.00 and set an “overweight” rating for the company in a report on Wednesday, September 23rd. Finally, Wells Fargo & Company reduced their price objective on KB Home from $52.00 to $50.00 and set an “underweight” rating for the company in a research report on Friday, September 11th. Four research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $53.08.

Read Our Latest Research Report on KB Home

KB Home Stock Performance

The firm’s 50-day simple moving average is $50.56 and its 200-day simple moving average is $52.44. The company has a market capitalization of $2.54 billion, a price-to-earnings ratio of 10.77, a price-to-earnings-growth ratio of 2.19 and a beta of 1.34.

KB Home (NYSE:KBH – Get Free Report) last posted its quarterly earnings data on Tuesday, September 22nd. The construction company reported $1.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.88 by $0.17. KB Home had a net margin of 4.39% and a return on equity of 6.56%. The company had revenue of $1.30 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter in the previous year, the firm posted $1.61 EPS. The business’s revenue was down 20.0% compared to the same quarter last year. Equities research analysts forecast that KB Home will post 3.26 earnings per share for the current year.

KB Home Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Thursday, November 12th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $1.00 dividend on an annualized basis and a yield of 2.4%. KB Home’s dividend payout ratio (DPR) is 28.17%.

Insider Activity

In related news, EVP Albert Praw sold 22,015 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was 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 $6,108,439.40. The trade was a 17.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Arthur Collins sold 4,000 shares of the company’s stock in a transaction that occurred 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 transaction, the director directly owned 9,157 shares of the company’s stock, valued at approximately $521,582.72. This trade represents a 30.40% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 4.69% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. 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 valued at $26,000 after purchasing an additional 220 shares in the last quarter. Eastern Bank bought a new stake in shares of KB Home in the 2nd quarter valued at approximately $26,000. Mather Group LLC. acquired a new position in shares of KB Home in the 3rd quarter worth approximately $34,000. Polaris Financial Partners acquired a new position in shares of KB Home in the 3rd quarter worth approximately $43,000. Finally, Ameritas Advisory Services LLC acquired a new position in shares of KB Home in the 2nd quarter worth approximately $46,000. 96.09% of the stock is currently owned by institutional investors and hedge funds.

About KB Home

(Get Free Report)

KB Home is a national homebuilder that designs, constructs and sells single-family homes and townhomes. The company offers homes in a range of floor plans, sizes and price points, with options that allow buyers to personalize features and finishes. Its communities typically include amenities such as parks, open spaces and other neighborhood improvements.

Founded in 1957, KB Home is headquartered in Los Angeles, California. The company serves residential markets across the United States, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.

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