Bank of America Has Lowered Expectations for KB Home (NYSE:KBH) Stock Price

KB Home (NYSE:KBH) had its price target decreased by equities research analysts at Bank of America from $56.00 to $54.00 in a research report issued to clients and investors on Wednesday, MarketBeat.com reports. The brokerage currently has a “neutral” rating on the construction company’s stock. Bank of America‘s price target would suggest a potential upside of 11.07% from the company’s previous close.

KBH has been the topic of several other research reports. Weiss Ratings upgraded KB Home from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday. Citizens Jmp reiterated a “market outperform” rating and issued a $77.00 price objective on shares of KB Home in a report on Thursday, September 10th. Truist Financial cut their price objective on shares of KB Home from $56.00 to $55.00 and set a “hold” rating on the stock in a research report on Wednesday, September 16th. Royal Bank Of Canada restated a “sector perform” rating and set a $53.00 target price on shares of KB Home in a report on Wednesday, June 24th. Finally, Barclays raised their target price on shares of KB Home from $56.00 to $57.00 and gave the company an “overweight” rating in a research report on Thursday, June 25th. Four equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $59.75.

KB Home Price Performance

KBH opened at $48.62 on Wednesday. The company has a market capitalization of $2.98 billion, a price-to-earnings ratio of 16.94, a P/E/G ratio of 2.47 and a beta of 1.34. The business’s 50-day moving average price is $54.18 and its two-hundred day moving average price is $53.44. KB Home has a 1 year low of $44.03 and a 1 year high of $67.57.

KB Home (NYSE:KBH) last posted its quarterly earnings data on Tuesday, September 22nd. The construction company reported $1.05 earnings per share for the quarter, topping the consensus estimate of $0.88 by $0.17. The company had revenue of $1.30 billion during the quarter, compared to analysts’ expectations of $1.30 billion. KB Home had a return on equity of 7.67% and a net margin of 4.94%.KB Home’s revenue for the quarter was down 20.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.61 earnings per share. Sell-side analysts anticipate that KB Home will post 3.27 earnings per share for the current fiscal year.

Insider Activity at KB Home

In other KB Home news, EVP Albert Praw sold 22,015 shares of the business’s stock in a transaction that occurred on 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 owned 104,062 shares of the company’s stock, valued at $6,108,439.40. The trade was a 17.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through 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 stock was sold at an average price of $56.96, for a total value of $227,840.00. Following the sale, the director owned 9,157 shares in the company, valued at approximately $521,582.72. This represents a 30.40% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.69% of the stock is owned by insiders.

Institutional Trading of KB Home

Several institutional investors and hedge funds have recently bought and sold shares of the business. Great Lakes Advisors LLC bought a new stake in KB Home in the 2nd quarter valued at $4,470,000. Bank of America Corp DE acquired a new stake in shares of KB Home during the second quarter worth $35,377,000. SummitTX Capital L.P. bought a new stake in shares of KB Home in the first quarter valued at about $1,771,000. Fifth Third Bancorp boosted its position in shares of KB Home by 2,016.1% in the first quarter. Fifth Third Bancorp now owns 24,864 shares of the construction company’s stock valued at $1,287,000 after acquiring an additional 23,689 shares during the period. Finally, EMG Holdings L.P. acquired a new position in shares of KB Home in the first quarter valued at about $4,019,000. Institutional investors own 96.09% of the company’s stock.

Key Headlines Impacting KB Home

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

• Positive Sentiment: KB Home reported third-quarter adjusted earnings of $1.05 per share, beating the $0.88 analyst consensus. The company also repurchased $50 million of stock, and its ending backlog increased 3% in value to $2.05 billion. KB Home Reports 2026 Third Quarter Results
• Positive Sentiment: The company’s built-to-order strategy helped support profitability, with quarterly housing gross margin of 16.5%. The earnings beat and resilient backlog provide some support for the shares despite broader housing-market weakness. KB Home Q3 Earnings Top Consensus
• Neutral Sentiment: Analysts remain divided. Wells Fargo maintained a Sell rating with a $50 price target, while Bank of America reiterated Hold with a $54 target, citing softer demand and a weaker outlook. Wells Fargo Maintains Sell Rating
• Negative Sentiment: Revenue fell 20% year over year to $1.30 billion, net income dropped to $65.3 million from $109.8 million, and deliveries declined 19% to 2,732 homes. Net orders also fell 12%, signaling continued pressure from elevated mortgage rates and cautious buyers. KB Home Q3 Revenue Falls 20 Percent
• Negative Sentiment: KB Home reduced its full-year gross-margin outlook to 16.0%-16.2% from 16.1%-16.5%. Investors were also unsettled by a softer fourth-quarter and full-year sales outlook, which suggests pricing incentives and financing costs may continue to weigh on profitability. KB Home Cuts Margin Outlook

About KB Home

KB Home (NYSE: KBH) is a homebuilding company that designs, constructs and sells residential properties in the United States. Its offerings primarily include single-family homes, with communities and floor plans intended for first-time buyers, move-up buyers and other owner-occupants. The company also provides homebuyers with opportunities to personalize selected features and finishes through its build-to-order approach.

The company operates in several major housing markets across the United States, including locations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.