Royal Bank Of Canada Has Lowered Expectations for KB Home (NYSE:KBH) Stock Price

KB Home (NYSE:KBH) had its target price lowered by equities research analysts at Royal Bank Of Canada from $54.00 to $53.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm currently has a “sector perform” rating on the construction company’s stock. Royal Bank Of Canada’s price target suggests a potential upside of 2.18% from the company’s current price.

Several other analysts have also recently commented on the stock. The Goldman Sachs Group restated a “neutral” rating and set a $66.00 price target on shares of KB Home in a report on Tuesday, January 13th. Truist Financial assumed coverage on shares of KB Home in a research note on Tuesday, March 3rd. They set a “hold” rating and a $65.00 target price for the company. Bank of America dropped their price target on shares of KB Home from $63.00 to $56.00 and set a “neutral” rating on the stock in a research note on Wednesday. Keefe, Bruyette & Woods reduced 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. Finally, Wells Fargo & Company decreased their target price on shares of KB Home from $55.00 to $50.00 and set an “underweight” rating for the company in a research report on Wednesday. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, KB Home currently has a consensus rating of “Hold” and an average price target of $59.50.

KB Home Price Performance

Shares of NYSE:KBH opened at $51.87 on Wednesday. The company’s fifty day moving average is $59.34 and its two-hundred day moving average is $60.94. The company 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. KB Home has a 12-month low of $48.90 and a 12-month high of $68.71. The company has a quick ratio of 0.53, a current ratio of 2.20 and a debt-to-equity ratio of 0.43.

KB Home (NYSE:KBH) last issued its quarterly earnings results on Tuesday, March 24th. The construction company reported $0.52 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.52. The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.10 billion. KB Home had a return on equity of 9.63% and a net margin of 5.96%.KB Home’s revenue for the quarter was down 22.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.49 earnings per share. Equities analysts expect that KB Home will post 8.42 earnings per share for the current fiscal year.

Institutional Investors Weigh In On KB Home

Several hedge funds and other institutional investors have recently made changes to their positions in the business. First Horizon Corp increased its stake in shares of KB Home by 178.9% in the fourth quarter. First Horizon Corp now owns 502 shares of the construction company’s stock worth $28,000 after purchasing an additional 322 shares during the period. Parkside Financial Bank & Trust boosted its stake in KB Home by 73.1% during the 4th 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 during the period. Fulcrum Asset Management LLP bought a new position in KB Home in the 3rd quarter worth approximately $36,000. Jones Financial Companies Lllp lifted its holdings in shares of KB Home by 44.4% during the third quarter. Jones Financial Companies Lllp now owns 781 shares of the construction company’s stock worth $49,000 after buying an additional 240 shares during the last quarter. Finally, Aventura Private Wealth LLC bought a new stake in shares of KB Home in the fourth quarter valued at approximately $46,000. 96.09% of the stock is owned by institutional investors and hedge funds.

KB Home News Summary

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

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.