KB Home (NYSE:KBH) Shares Gap Up – Here’s Why

KB Home (NYSE:KBH)’s share price gapped up prior to trading on Wednesday . The stock had previously closed at $52.73, but opened at $56.70. KB Home shares last traded at $61.2790, with a volume of 791,788 shares traded.

Key KB Home News

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

• Positive Sentiment: KB Home reported Q2 revenue of $1.11 billion, above analyst expectations, and said results met or exceeded the midpoint of its guidance ranges. KB HOME REPORTS 2026 SECOND QUARTER RESULTS
• Positive Sentiment: The company also repurchased $75 million of common stock, a sign management remains confident in the business and shareholder returns. KB HOME REPORTS 2026 SECOND QUARTER RESULTS
• Neutral Sentiment: Adjusted profitability was softer: EPS came in at $0.43, slightly below the $0.44 consensus and well below the $1.50 earned a year ago, reflecting a weaker housing backdrop. KB Home: Fiscal Q2 Earnings Snapshot
• Negative Sentiment: Revenue still fell 27.3% year over year, and management narrowed its full-year outlook, reinforcing concerns that demand remains pressured by a difficult housing market. KB Home Reports Lower Revenue as Difficult Housing Market Persists

Wall Street Analyst Weigh In

A number of equities research analysts have commented on KBH shares. The Goldman Sachs Group reduced their target price on KB Home from $65.00 to $56.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 25th. 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, March 25th. UBS Group increased their price target on KB Home from $63.00 to $66.00 and gave the stock a “buy” rating in a report on Wednesday. Citigroup restated a “market outperform” rating on shares of KB Home in a report on Wednesday, June 17th. Finally, Barclays decreased 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 report on Wednesday, March 25th. Four equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, KB Home currently has an average rating of “Hold” and a consensus target price of $59.58.

KB Home Trading Up 15.5%

The company’s fifty day moving average is $51.24 and its two-hundred day moving average is $56.03. The stock has a market cap of $3.81 billion, a price-to-earnings ratio of 15.48, a P/E/G ratio of 9.27 and a beta of 1.37.

KB Home (NYSE:KBH) last announced its earnings results on Tuesday, June 23rd. The construction company reported $0.43 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.01). KB Home had a net margin of 5.96% and a return on equity of 9.63%. The firm had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.09 billion. During the same period in the previous year, the firm earned $1.50 EPS. The firm’s revenue for the quarter was down 27.3% compared to the same quarter last year. Analysts predict that KB Home will post 3.1 EPS for the current year.

KB Home Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Thursday, May 7th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, May 7th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.6%. KB Home’s payout ratio is presently 25.38%.

Hedge Funds Weigh In On KB Home

Several hedge funds have recently bought and sold shares of the company. Bessemer Group Inc. boosted its holdings in KB Home by 80.0% during the 1st quarter. Bessemer Group Inc. now owns 495 shares of the construction company’s stock valued at $26,000 after acquiring an additional 220 shares during the period. First Horizon Corp grew its position in 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 acquiring an additional 322 shares in the last quarter. Parkside Financial Bank & Trust increased its stake in KB Home by 73.1% during the fourth quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company’s stock worth $33,000 after purchasing an additional 250 shares during the period. Fulcrum Asset Management LLP purchased a new stake in KB Home during the third quarter worth about $36,000. Finally, Aventura Private Wealth LLC acquired a new stake in shares of KB Home during the fourth quarter worth about $46,000. Institutional investors and hedge funds own 96.09% of the company’s stock.

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.