KB Home (NYSE:KBH – Get Free Report) had its price target dropped by research analysts at The Goldman Sachs Group from $65.00 to $56.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has a “neutral” rating on the construction company’s stock. The Goldman Sachs Group’s target price suggests a potential upside of 7.97% from the company’s current price.
Several other analysts also recently issued reports on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of KB Home in a research note on Thursday, January 22nd. Truist Financial cut their price objective on shares of KB Home from $65.00 to $54.00 and set a “hold” rating for the company in a report on Wednesday. Bank of America dropped their target price on shares of KB Home from $63.00 to $56.00 and set a “neutral” rating for the company in a research report on Wednesday. Barclays cut their target price on shares of KB Home from $62.00 to $56.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Wells Fargo & Company decreased their price target on shares of KB Home from $55.00 to $50.00 and set an “underweight” rating on the stock in a research note on Wednesday. Three 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. According to data from MarketBeat.com, KB Home has an average rating of “Hold” and an average price target of $59.50.
Check Out Our Latest Stock Report on KB Home
KB Home Trading Down 0.5%
KB Home (NYSE:KBH – Get Free Report) last posted its quarterly earnings results on Tuesday, March 24th. The construction company reported $0.52 EPS for the quarter, meeting analysts’ consensus estimates of $0.52. KB Home had a return on equity of 9.63% and a net margin of 5.96%.The business had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.10 billion. During the same period last year, the firm earned $1.49 earnings per share. The business’s quarterly revenue was down 22.6% on a year-over-year basis. On average, sell-side analysts anticipate that KB Home will post 8.42 earnings per share for the current fiscal year.
Institutional Investors Weigh In On KB Home
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Freestone Grove Partners LP bought a new stake in shares of KB Home in the 3rd quarter valued at approximately $111,050,000. Norges Bank purchased a new stake in KB Home during the 2nd quarter valued at $55,329,000. Deprince Race & Zollo Inc. bought a new stake in KB Home in the third quarter worth $59,301,000. Donald Smith & CO. Inc. lifted its position in KB Home by 387.8% in the fourth quarter. Donald Smith & CO. Inc. now owns 725,394 shares of the construction company’s stock worth $40,919,000 after buying an additional 576,694 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its stake in KB Home by 102.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 932,178 shares of the construction company’s stock worth $52,584,000 after buying an additional 471,598 shares during the period. 96.09% of the stock is currently owned by hedge funds and other institutional investors.
Key Stories Impacting 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
KB Home Company Profile
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.
Recommended Stories
Receive News & Ratings for KB Home Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KB Home and related companies with MarketBeat.com's FREE daily email newsletter.
