KB Home (NYSE:KBH) Shares Down 5.1% Following Weak Earnings

KB Home (NYSE:KBH)’s share price traded down 5.1% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $49.80 and last traded at $50.2230. 689,787 shares were traded during mid-day trading, a decline of 39% from the average session volume of 1,132,803 shares. The stock had previously closed at $52.94.

The construction company reported $0.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.01). 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 6.88% and a return on equity of 11.40%. The firm’s revenue for the quarter was down 22.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.49 earnings per share.

KB Home Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Thursday, February 5th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, February 5th. This represents a $1.00 dividend on an annualized basis and a yield of 2.0%. KB Home’s dividend payout ratio (DPR) is currently 20.37%.

KB Home News Roundup

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

• Positive Sentiment: Management announced a strategic shift to ~70% built?to?order deliveries to improve margins in H2 2026 and the company repurchased $50M of stock, actions aimed at protecting margins and capital allocation. KB Home outlines shift to 70% built-to-order
• Positive Sentiment: New coverage: Citizens / JMP initiated coverage with an Outperform and a $77 PT, signaling at least one bullish view on longer?term upside. Citizens initiates coverage with market outperform
• Neutral Sentiment: Mixed analyst reactions: Barclays and Bank of America cut targets (both to the mid?$50s) but kept constructive/neutral stances, leaving opinions divergent across the street. Barclays cuts PT to $56, keeps overweight
• Neutral Sentiment: Some analysts reiterated Hold/Neutral ratings while trimming targets reflecting near?term headwinds, suggesting the street is mixed on timing of a recovery. TipRanks: Hold rating / tempered outlook
• Negative Sentiment: Q1 results missed expectations: EPS of $0.52 (vs. ~$0.53 consensus), revenue fell ~22–23% YoY to ~$1.08B — numbers materially weaker and a primary near?term catalyst for selling pressure. KB Home reports 2026 first quarter results (PRNewswire)
• Negative Sentiment: KB cut full?year guidance and management said the Middle East war is already deterring prospective buyers, directly tying geopolitical uncertainty to weaker demand. KB Home says the war is already hurting home sales (MarketWatch)
• Negative Sentiment: Wells Fargo kept a Sell and cut its PT to $50 (near current levels); several other shops trimmed targets — analyst downgrades and lower PTs amplify near?term downside risk. TipRanks: Wells Fargo maintains Sell, lowers PT to $50
• Negative Sentiment: Market reaction: multiple headlines note the stock sank after earnings and guidance, reflecting short?term investor risk aversion. Homebuilding stock suffers another blow after earnings

Wall Street Analysts Forecast Growth

KBH has been the subject of several research analyst reports. The Goldman Sachs Group reissued a “neutral” rating and issued a $66.00 price objective on shares of KB Home in a research note on Tuesday, January 13th. Royal Bank Of Canada lowered their price target on KB Home from $54.00 to $53.00 and set a “sector perform” rating on the stock in a research report on Wednesday. UBS Group dropped their price target on KB Home from $77.00 to $71.00 and set a “buy” rating on the stock in a research report on Tuesday, January 6th. Truist Financial cut their target price on shares of KB Home from $65.00 to $54.00 and set a “hold” rating for the company in a research note on Wednesday. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of KB Home in a research note on Thursday, January 22nd. Three investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $61.00.

Hedge Funds Weigh In On KB Home

Several institutional investors and hedge funds have recently modified their holdings of the business. Freestone Grove Partners LP acquired a new position in shares of KB Home in the third quarter valued at approximately $111,050,000. Norges Bank bought a new stake in KB Home during the second quarter worth about $55,329,000. Deprince Race & Zollo Inc. acquired a new stake in shares of KB Home in the 3rd quarter valued at approximately $59,301,000. Donald Smith & CO. Inc. lifted its stake 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 valued at $40,919,000 after acquiring an additional 576,694 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in KB Home by 102.4% in the 4th quarter. Goldman Sachs Group Inc. now owns 932,178 shares of the construction company’s stock valued at $52,584,000 after purchasing an additional 471,598 shares during the last quarter. 96.09% of the stock is currently owned by institutional investors and hedge funds.

KB Home Stock Down 5.5%

The firm’s fifty day moving average is $59.74 and its 200 day moving average is $61.07. The firm has a market cap of $3.16 billion, a P/E ratio of 10.17, a P/E/G ratio of 7.07 and a beta of 1.47. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.53 and a current ratio of 5.77.

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.