KB Home (NYSE:KBH) Trading Down 5.1% After Earnings Miss

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

The construction company reported $0.52 EPS for the quarter, meeting the consensus estimate of $0.52. The firm had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.10 billion. KB Home had a net margin of 5.96% and a return on equity of 9.63%. The business’s quarterly revenue was down 22.6% compared to the same quarter last year. During the same period last year, the firm earned $1.49 EPS.

KB Home Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Thursday, February 5th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend was Thursday, February 5th. KB Home’s dividend payout ratio (DPR) is 20.37%.

Trending Headlines about KB Home

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

• Positive Sentiment: Strategic pivot — KBH is shifting toward ~70% built‑to‑order deliveries to protect margins and cashflow in H2 2026, which could improve profitability if demand stabilizes. Built-to-Order Shift
• Positive Sentiment: New analyst interest — Citizens initiated coverage with a Market Outperform, providing some institutional support and a potential catalyst if their thesis gains traction. Citizens Initiates Coverage
• Neutral Sentiment: Q1 results mixed — KBH reported EPS roughly in line with estimates but revenue and deliveries fell sharply year‑over‑year; management provided detailed slides and a transcript for investors to parse the underlying metrics. Earnings Call Transcript
• Neutral Sentiment: Analyst coverage is divergent — some firms maintain buy/overweight views while others cut price targets to the mid‑$50s or lower; consensus now reflects slower near‑term growth. Analyst Reactions
• Negative Sentiment: Guidance cut and macro headwind — Management trimmed full‑year delivery and revenue guidance and explicitly said the Middle East war has reduced buyer traffic and confidence, increasing uncertainty for near‑term demand. WSJ: Cuts Guidance
• Negative Sentiment: Margin and backlog pressure — Revenues fell ~22–23% Y/Y, backlog and home counts slipped, and margin compression forced a reset in expectations for capital returns (buybacks slowing). MarketBeat Deep Dive
• Negative Sentiment: Multiple price‑target cuts and downgrades — Banks including Goldman, Truist, Wells Fargo and others trimmed targets and some lowered ratings, which typically amplifies selling into a weak earnings/guidance print. Price Target Moves

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Zacks Research cut KB Home from a “hold” rating to a “strong sell” rating in a research note on Tuesday, December 23rd. Bank of America lowered their price target on KB Home from $63.00 to $56.00 and set a “neutral” rating for the company in a report on Wednesday. Keefe, Bruyette & Woods dropped their price objective on KB Home from $67.00 to $62.00 and set a “market perform” rating for the company in a research report on Tuesday, December 23rd. Wells Fargo & Company reduced their price objective on KB Home from $55.00 to $50.00 and set an “underweight” rating on the stock in a research note on Wednesday. Finally, Raymond James Financial cut KB Home from an “outperform” rating to a “market perform” rating in a research report on Wednesday, December 24th. Three research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, KB Home has a consensus rating of “Hold” and an average target price of $59.50.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. First Horizon Corp grew its position in KB Home by 178.9% during the 4th quarter. First Horizon Corp now owns 502 shares of the construction company’s stock worth $28,000 after acquiring an additional 322 shares during the last quarter. Parkside Financial Bank & Trust boosted its stake in shares of KB Home by 73.1% during the fourth quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company’s stock valued at $33,000 after purchasing an additional 250 shares in the last quarter. Fulcrum Asset Management LLP bought a new stake in shares of KB Home during the third quarter worth about $36,000. Aventura Private Wealth LLC acquired a new position in shares of KB Home in the fourth quarter valued at approximately $46,000. Finally, Rothschild Investment LLC raised its holdings in KB Home by 391.0% in the 4th quarter. Rothschild Investment LLC now owns 820 shares of the construction company’s stock valued at $46,000 after buying an additional 653 shares during the last quarter. 96.09% of the stock is currently owned by institutional investors.

KB Home Trading Down 0.5%

The business’s fifty day moving average is $59.34 and its 200-day moving average is $60.94. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.53 and a current ratio of 2.20. The firm has a market cap of $3.23 billion, a P/E ratio of 10.56, a price-to-earnings-growth ratio of 6.93 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.