KB Home (NYSE:KBH) Trading Down 5.1% on Disappointing Earnings

KB Home (NYSE:KBH) was down 5.1% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $49.80 and last traded at $50.2230. Approximately 689,787 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 1,132,803 shares. The stock had previously closed at $52.94.

The construction company reported $0.52 earnings per share for the quarter, missing analysts’ consensus estimates of $0.53 by ($0.01). KB Home had a net margin of 6.88% and a return on equity of 11.40%. The business had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.10 billion. During the same quarter last year, the firm posted $1.49 EPS. The company’s revenue for the quarter was down 22.6% on a year-over-year basis.

KB Home Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Shareholders of record on Thursday, February 5th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend was Thursday, February 5th. KB Home’s payout ratio is 20.37%.

Trending Headlines about KB Home

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

• Positive Sentiment: Management announced a strategic shift to ~70% built‑to‑order deliveries to improve margins in H2 2026 and the company repurchased $50M of stock, actions aimed at protecting margins and capital allocation. KB Home outlines shift to 70% built-to-order
• Positive Sentiment: New coverage: Citizens / JMP initiated coverage with an Outperform and a $77 PT, signaling at least one bullish view on longer‑term upside. Citizens initiates coverage with market outperform
• Neutral Sentiment: Mixed analyst reactions: Barclays and Bank of America cut targets (both to the mid‑$50s) but kept constructive/neutral stances, leaving opinions divergent across the street. Barclays cuts PT to $56, keeps overweight
• Neutral Sentiment: Some analysts reiterated Hold/Neutral ratings while trimming targets reflecting near‑term headwinds, suggesting the street is mixed on timing of a recovery. TipRanks: Hold rating / tempered outlook
• Negative Sentiment: Q1 results missed expectations: EPS of $0.52 (vs. ~$0.53 consensus), revenue fell ~22–23% YoY to ~$1.08B — numbers materially weaker and a primary near‑term catalyst for selling pressure. KB Home reports 2026 first quarter results (PRNewswire)
• Negative Sentiment: KB cut full‑year guidance and management said the Middle East war is already deterring prospective buyers, directly tying geopolitical uncertainty to weaker demand. KB Home says the war is already hurting home sales (MarketWatch)
• Negative Sentiment: Wells Fargo kept a Sell and cut its PT to $50 (near current levels); several other shops trimmed targets — analyst downgrades and lower PTs amplify near‑term downside risk. TipRanks: Wells Fargo maintains Sell, lowers PT to $50
• Negative Sentiment: Market reaction: multiple headlines note the stock sank after earnings and guidance, reflecting short‑term investor risk aversion. Homebuilding stock suffers another blow after earnings

Wall Street Analysts Forecast Growth

KBH has been the subject of a number of research reports. Royal Bank Of Canada reduced their price target on shares of KB Home from $54.00 to $53.00 and set a “sector perform” rating for the company in a research report on Wednesday. JPMorgan Chase & Co. decreased their price target on shares of KB Home from $71.00 to $50.00 and set a “neutral” rating for the company in a research note on Monday, December 29th. Truist Financial reduced their price objective on shares of KB Home from $65.00 to $54.00 and set a “hold” rating for the company in a research report on Wednesday. The Goldman Sachs Group reiterated a “neutral” rating and issued a $66.00 price objective on shares of KB Home in a research report on Tuesday, January 13th. Finally, UBS Group reduced their price target on shares of KB Home from $77.00 to $71.00 and set a “buy” rating for the company in a research report on Tuesday, January 6th. Three equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $61.00.

Hedge Funds Weigh In On KB Home

Several hedge funds and other institutional investors have recently modified their holdings of KBH. United Services Automobile Association acquired a new position in shares of KB Home during the 1st quarter valued at $226,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in KB Home by 5.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 225,525 shares of the construction company’s stock worth $13,108,000 after purchasing an additional 11,103 shares during the period. Creative Planning boosted its stake in KB Home by 75.1% in the second quarter. Creative Planning now owns 46,524 shares of the construction company’s stock valued at $2,464,000 after acquiring an additional 19,956 shares during the period. Legal & General Group Plc grew its stake in KB Home by 2.1% during the 2nd quarter. Legal & General Group Plc now owns 121,178 shares of the construction company’s stock worth $6,419,000 after buying an additional 2,515 shares during the last quarter. Finally, Rhumbline Advisers lifted its position in KB Home by 4.4% in the 2nd quarter. Rhumbline Advisers now owns 298,975 shares of the construction company’s stock valued at $15,837,000 after purchasing an additional 12,697 shares during the last quarter. 96.09% of the stock is owned by institutional investors and hedge funds.

KB Home Stock Performance

The company has a quick ratio of 0.53, a current ratio of 5.77 and a debt-to-equity ratio of 0.43. The company has a 50-day moving average price of $59.74 and a 200-day moving average price of $61.07. The firm has a market capitalization of $3.16 billion, a price-to-earnings ratio of 10.17, a P/E/G ratio of 7.07 and a beta of 1.47.

About KB Home

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.