Wells Fargo & Company Issues Pessimistic Forecast for KB Home (NYSE:KBH) Stock Price

KB Home (NYSE:KBH) had its target price reduced by research analysts at Wells Fargo & Company from $55.00 to $50.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has an “underweight” rating on the construction company’s stock. Wells Fargo & Company‘s price objective indicates a potential downside of 3.60% from the company’s current price.

A number of other brokerages also recently commented on KBH. Barclays cut their target price on shares of KB Home from $62.00 to $56.00 and set an “overweight” rating on the stock in a research note on Wednesday. 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. Weiss Ratings reissued a “hold (c+)” rating on shares of KB Home in a research report on Thursday, January 22nd. The Goldman Sachs Group restated a “neutral” rating and set a $66.00 price objective on shares of KB Home in a research note on Tuesday, January 13th. Finally, Citizens Jmp started coverage on KB Home in a research note on Tuesday. They issued an “outperform” rating and a $77.00 target price for the company. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $59.50.

KB Home Stock Down 0.5%

Shares of NYSE:KBH opened at $51.87 on Wednesday. The stock has a 50-day simple moving average of $59.34 and a 200-day simple moving average of $60.94. The stock has a market capitalization of $3.23 billion, a P/E ratio of 10.56, a PEG ratio of 6.93 and a beta of 1.47. KB Home has a 1 year low of $48.90 and a 1 year high of $68.71. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.53 and a current ratio of 2.20.

KB Home (NYSE:KBH) last posted its quarterly earnings results on Tuesday, March 24th. 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%. KB Home’s revenue for the quarter was down 22.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.49 earnings per share. Equities analysts forecast that KB Home will post 8.42 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. SG Americas Securities LLC increased its position in shares of KB Home by 204.8% in the 3rd quarter. SG Americas Securities LLC now owns 69,078 shares of the construction company’s stock worth $4,396,000 after purchasing an additional 46,415 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new position in shares of KB Home during the third quarter worth about $1,551,000. Deprince Race & Zollo Inc. acquired a new position in KB Home in the third quarter worth about $59,301,000. Strs Ohio increased its holdings in KB Home by 1,788.1% in the third quarter. Strs Ohio now owns 79,300 shares of the construction company’s stock valued at $5,047,000 after buying an additional 75,100 shares during the last quarter. Finally, iSAM Funds UK Ltd bought a new stake in KB Home in the third quarter valued at about $1,451,000. 96.09% of the stock is currently owned by institutional investors.

KB Home News Roundup

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.