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

KB Home (NYSE:KBH) had its target price reduced by Bank of America from $63.00 to $56.00 in a report issued on Wednesday,Benzinga reports. Bank of America currently has a neutral rating on the construction company’s stock.

A number of other brokerages have also weighed in on KBH. JPMorgan Chase & Co. decreased their price target on shares of KB Home from $71.00 to $50.00 and set a “neutral” rating on the stock in a research note on Monday, December 29th. Wells Fargo & Company reduced their price objective on KB Home from $60.00 to $55.00 and set an “underweight” rating for the company in a research note on Friday, December 19th. Citizens Jmp began coverage on KB Home in a report on Tuesday. They issued an “outperform” rating and a $77.00 price objective on the stock. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of KB Home in a research note on Thursday, January 22nd. Finally, The Goldman Sachs Group reaffirmed a “neutral” rating and set a $66.00 target price on shares of KB Home in a report on Tuesday, January 13th. Three research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, KB Home has a consensus rating of “Hold” and an average target price of $59.50.

KB Home Price Performance

Shares of NYSE KBH opened at $50.91 on Wednesday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.53 and a current ratio of 2.20. The firm has a fifty day moving average of $59.13 and a 200 day moving average of $60.82. The firm has a market cap of $3.17 billion, a PE ratio of 10.37, a PEG ratio of 7.15 and a beta of 1.47. KB Home has a one year low of $48.90 and a one year high of $68.71.

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

KB Home Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Thursday, February 5th were issued 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 dividend yield of 2.0%. KB Home’s dividend payout ratio is currently 20.37%.

Hedge Funds Weigh In On KB Home

A number of institutional investors have recently bought and sold shares of the company. Xponance Inc. increased its holdings in shares of KB Home by 1.6% during the 3rd quarter. Xponance Inc. now owns 10,198 shares of the construction company’s stock worth $649,000 after buying an additional 163 shares during the last quarter. Vista Investment Management lifted its holdings in KB Home by 3.5% in the fourth quarter. Vista Investment Management now owns 5,117 shares of the construction company’s stock valued at $289,000 after acquiring an additional 175 shares during the last quarter. GHE LLC lifted its holdings in KB Home by 0.7% in the third quarter. GHE LLC now owns 30,983 shares of the construction company’s stock valued at $1,972,000 after acquiring an additional 212 shares during the last quarter. Jones Financial Companies Lllp grew its position in KB Home by 44.4% in the third quarter. Jones Financial Companies Lllp now owns 781 shares of the construction company’s stock worth $49,000 after acquiring an additional 240 shares during the period. Finally, Parkside Financial Bank & Trust grew its position in KB Home by 73.1% in the fourth quarter. Parkside Financial Bank & Trust now owns 592 shares of the construction company’s stock worth $33,000 after acquiring an additional 250 shares during the period. 96.09% of the stock is owned by hedge funds and other institutional investors.

More KB Home News

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

• Positive Sentiment: Company pivot to a build-to-order strategy that management says should improve margins and position KBH for a recovery in 2027; this is the primary long-term upside scenario. Read More.
• Neutral Sentiment: Q1 earnings call framed 2026 as a “reset” year with cautionary commentary for near-term volumes and margins — useful context but not a catalyst by itself. Read More.
• Neutral Sentiment: Coverage initiation at Citizens JMP increases analyst attention (could change liquidity/visibility over time). Read More.
• Negative Sentiment: Q1 results disappointed: revenue down ~22–23% YoY, deliveries fell, and EPS missed/was materially below prior-year levels — a direct driver of the sell-off. Read More.
• Negative Sentiment: KBH cut guidance for 2026 and cited geopolitical headwinds (Middle East instability) as weighing on buyer demand — the weaker outlook amplifies upside risk for the shares. Read More.
• Negative Sentiment: Capital-return capacity is under pressure: buybacks slowed ~75% YoY in Q1, cash is being used to support payouts, and MarketBeat flags dividend/buyback risk if cash flows don’t recover. Read More.
• Negative Sentiment: Multiple sell-side firms have lowered estimates and price targets (Barclays, Bank of America to $56; UBS lowered expectations) and big firms (Goldman Sachs, Wells Fargo, Truist) issued pessimistic outlooks — analyst momentum is turning negative. Read More. Read More. Read More. Read More. Read More. Read More.
• Negative Sentiment: Technical and market-structure headwinds: MarketBeat highlights a looming “Death Cross,” critical support near the 2025 low (~$48.90) is at risk, institutions have been net sellers and short interest remains elevated — increasing downside vulnerability. Read More.

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.