Bank of America Lowers KB Home (NYSE:KBH) Price Target to $56.00

KB Home (NYSE:KBH) had its price target cut by investment analysts at Bank of America from $63.00 to $56.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has a “neutral” rating on the construction company’s stock. Bank of America‘s target price would indicate a potential upside of 7.97% from the company’s previous close.

A number of other equities analysts have also weighed in on KBH. Wells Fargo & Company cut their price objective on shares of KB Home from $60.00 to $55.00 and set an “underweight” rating for the company in a research report on Friday, December 19th. Keefe, Bruyette & Woods decreased their target price on shares of KB Home from $67.00 to $62.00 and set a “market perform” rating on the stock in a research report on Tuesday, December 23rd. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $66.00 target price on shares of KB Home in a research note on Tuesday, January 13th. Truist Financial began coverage on KB Home in a research note on Tuesday, March 3rd. They set a “hold” rating and a $65.00 price target on the stock. Finally, Citizens Jmp initiated coverage on KB Home in a report on Tuesday. They set an “outperform” rating and a $77.00 price objective on the stock. Three research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, KB Home presently has an average rating of “Hold” and a consensus target price of $59.50.

KB Home Trading Down 0.5%

KB Home stock opened at $51.87 on Wednesday. The stock has a 50-day moving average price of $59.34 and a 200 day moving average price of $60.94. KB Home has a 52 week low of $48.90 and a 52 week high of $68.71. The stock has a market cap of $3.23 billion, a PE ratio of 10.56, a P/E/G ratio of 6.93 and a beta of 1.47. The company has a current ratio of 2.20, a quick ratio of 0.53 and a debt-to-equity ratio of 0.43.

KB Home (NYSE:KBH) last released its earnings results on Tuesday, March 24th. The construction company reported $0.52 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.52. KB Home had a net margin of 5.96% and a return on equity of 9.63%. The company had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.10 billion. During the same period in the prior year, the firm earned $1.49 EPS. The firm’s quarterly revenue was down 22.6% on a year-over-year basis. Equities research analysts predict that KB Home will post 8.42 earnings per share for the current fiscal year.

Hedge Funds Weigh In On KB Home

Several institutional investors and hedge funds have recently bought and sold shares of KBH. First Horizon Corp boosted its holdings in shares of KB Home by 178.9% in the 4th quarter. First Horizon Corp now owns 502 shares of the construction company’s stock valued at $28,000 after purchasing an additional 322 shares during the last quarter. Parkside Financial Bank & Trust increased its holdings in shares of KB Home by 73.1% during the 4th quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company’s stock worth $33,000 after buying an additional 250 shares during the last quarter. Fulcrum Asset Management LLP acquired a new stake in shares of KB Home during the 3rd quarter worth $36,000. Jones Financial Companies Lllp raised its position in shares of KB Home by 44.4% in the 3rd 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 period. Finally, Aventura Private Wealth LLC purchased a new position in shares of KB Home in the 4th quarter worth $46,000. Institutional investors and hedge funds own 96.09% of the company’s stock.

More KB Home News

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.