Zacks Research Issues Negative Estimate for KB Home Earnings

KB Home (NYSE:KBH) – Analysts at Zacks Research dropped their Q3 2026 earnings estimates for KB Home in a report released on Friday, September 18th. Zacks Research analyst Team now anticipates that the construction company will earn $0.86 per share for the quarter, down from their prior forecast of $0.87. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for KB Home’s current full-year earnings is $3.27 per share. Zacks Research also issued estimates for KB Home’s Q3 2027 earnings at $1.01 EPS, FY2027 earnings at $4.09 EPS, Q3 2028 earnings at $1.34 EPS and FY2028 earnings at $5.12 EPS.

KBH has been the subject of several other research reports. Truist Financial decreased their price objective on KB Home from $56.00 to $55.00 and set a “hold” rating for the company in a report on Wednesday, September 16th. Wells Fargo & Company lowered their price objective on KB Home from $52.00 to $50.00 and set an “underweight” rating on the stock in a research report on Friday, September 11th. Citizens Jmp reaffirmed a “market outperform” rating and set a $77.00 price objective on shares of KB Home in a research note on Thursday, September 10th. Wall Street Zen raised shares of KB Home from a “sell” rating to a “hold” rating in a research note on Saturday, June 27th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of KB Home in a report on Thursday, September 10th. Four analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $59.92.

KB Home Stock Performance

Shares of KBH opened at $48.62 on Monday. The business’s 50-day moving average is $54.18 and its two-hundred day moving average is $53.44. The company has a market capitalization of $2.98 billion, a P/E ratio of 16.94, a P/E/G ratio of 2.47 and a beta of 1.34. KB Home has a fifty-two week low of $44.03 and a fifty-two week high of $67.57.

KB Home (NYSE:KBH) last posted its earnings results on Tuesday, September 22nd. The construction company reported $1.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.88 by $0.17. KB Home had a net margin of 4.94% and a return on equity of 7.67%. The company had revenue of $1.30 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same period in the previous year, the firm posted $1.61 earnings per share. The firm’s quarterly revenue was down 20.0% on a year-over-year basis.

Hedge Funds Weigh In On KB Home

Large investors have recently added to or reduced their stakes in the stock. Van Hulzen Asset Management LLC acquired a new stake in shares of KB Home in the second quarter valued at about $563,000. Engineers Gate Manager LP acquired a new position in shares of KB Home during the 2nd quarter worth about $658,000. Integrated Wealth Concepts LLC acquired a new position in shares of KB Home during the 2nd quarter worth about $73,000. Nykredit A S purchased a new position in KB Home in the 2nd quarter valued at about $152,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in KB Home in the 2nd quarter valued at about $1,609,000. 96.09% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, EVP Albert Z. Praw sold 22,015 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $58.70, for a total transaction of $1,292,280.50. Following the completion of the transaction, the executive vice president directly owned 104,062 shares of the company’s stock, valued at $6,108,439.40. This represents a 17.46% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Arthur Collins sold 4,000 shares of KB Home stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $56.96, for a total transaction of $227,840.00. Following the completion of the sale, the director directly owned 9,157 shares in the company, valued at $521,582.72. This represents a 30.40% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 4.69% of the company’s stock.

KB Home Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Thursday, August 6th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, August 6th. This represents a $1.00 dividend on an annualized basis and a yield of 2.1%. KB Home’s dividend payout ratio is presently 34.84%.

Key KB Home News

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

• Positive Sentiment: KB Home reported third-quarter adjusted earnings of $1.05 per diluted share, exceeding the $0.88 analyst consensus by $0.17. Revenue of approximately $1.30 billion was broadly in line with estimates. KB Home Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: The company repurchased $50 million of stock during the quarter, while fourth-quarter housing revenue guidance of $1.45 billion to $1.65 billion provides a potential near-term revenue catalyst. Backlog value also increased 3% year over year to $2.05 billion. KB Home Reports 2026 Third Quarter Results
• Neutral Sentiment: The earnings beat was supported by performance relative to reduced expectations, but key operating metrics were mixed. Deliveries declined 19% to 2,732 homes and net orders fell 12% to 2,604, while backlog value grew despite the lower volume. Compared to Estimates, KB Home Q3 Earnings
• Negative Sentiment: Revenue fell 20% year over year to $1.30 billion, net income dropped to $65.3 million from $109.8 million, and EPS declined from $1.61 to $1.05. Housing gross margin also contracted to 16.5% from 18.2%. KB Home Q3 Revenue Falls 20%
• Negative Sentiment: KB Home lowered its full-year gross profit margin outlook to 16.0%-16.2%, from 16.1%-16.5%, citing worsening housing conditions. Continued insider selling, including sales by senior executives, may also weigh on sentiment. KB Home Cuts Margin Outlook

KB Home Company Profile

KB Home (NYSE: KBH) is a homebuilding company that designs, constructs and sells residential properties in the United States. Its offerings primarily include single-family homes, with communities and floor plans intended for first-time buyers, move-up buyers and other owner-occupants. The company also provides homebuyers with opportunities to personalize selected features and finishes through its build-to-order approach.

The company operates in several major housing markets across the United States, including locations in Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.