KB Home (NYSE:KBH) Reaches New 52-Week Low After Analyst Downgrade

KB Home (NYSE:KBH) hit a new 52-week low during mid-day trading on Tuesday after Seaport Research Partners downgraded the stock from a buy rating to a sell rating. Seaport Research Partners now has a $43.00 price target on the stock, down from their previous price target of $65.00. KB Home traded as low as $48.58 and last traded at $48.8520, with a volume of 396936 shares trading hands. The stock had previously closed at $51.34.

KBH has been the subject of a number of other research reports. Bank of America decreased 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 note on Wednesday, March 25th. Zacks Research lowered KB Home from a “hold” rating to a “strong sell” rating in a research report on Tuesday, December 23rd. Raymond James Financial cut KB Home from an “outperform” rating to a “market perform” rating in a research note on Wednesday, December 24th. JPMorgan Chase & Co. cut their target price on KB Home from $71.00 to $50.00 and set a “neutral” rating on the stock in a research note on Monday, December 29th. Finally, Citizens Jmp assumed coverage on KB Home in a report on Tuesday, March 24th. They set an “outperform” rating and a $77.00 price target for the company. Three analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $59.50.

KB Home News Roundup

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

• Positive Sentiment: KB Home announced it will relocate its corporate headquarters from Los Angeles to the Phoenix metro area (Tempe) beginning in spring 2027 — management says the move will centralize leadership and lower the company’s cost structure over time. KB HOME ANNOUNCES NEW CORPORATE HEADQUARTERS IN PHOENIX METRO AREA
• Neutral Sentiment: ARGUS/third‑party stock forecast coverage available; may provide incremental analyst views but no single clear directional catalyst in this item. KB Home (KBH) Stock Forecasts
• Negative Sentiment: Zacks Research cut multiple quarterly and annual EPS forecasts across FY2026–FY2028 (examples: FY2026 cut to $2.80 from $4.12; FY2027 to $4.03 from $5.58; FY2028 to $4.93 from $6.71) and trimmed Q2–Q4 and Q1–Q3 quarter estimates — and assigned a “Strong Sell” rating. These reductions imply materially lower expected earnings power in the near term and are a negative for the stock.
• Negative Sentiment: Seaport Global downgraded KB Home, adding downward pressure from another sell‑side firm; this reinforces the market view of near‑term earnings/headwinds. Seaport Global downgrades KB Home (KBH)

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Freestone Grove Partners LP bought a new position in KB Home during the 3rd quarter valued at about $111,050,000. Deprince Race & Zollo Inc. purchased a new position in shares of KB Home during the third quarter valued at approximately $59,301,000. Norges Bank bought a new position in KB Home during the fourth quarter valued at approximately $48,418,000. Donald Smith & CO. Inc. lifted its position in KB Home by 387.8% during the fourth quarter. Donald Smith & CO. Inc. now owns 725,394 shares of the construction company’s stock valued at $40,919,000 after purchasing an additional 576,694 shares during the period. Finally, Goldman Sachs Group Inc. boosted its holdings in KB Home by 102.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 932,178 shares of the construction company’s stock worth $52,584,000 after purchasing an additional 471,598 shares during the last quarter. 96.09% of the stock is owned by institutional investors.

KB Home Stock Performance

The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.20 and a current ratio of 2.20. The firm has a market cap of $3.25 billion, a P/E ratio of 13.25, a P/E/G ratio of 7.82 and a beta of 1.50. The business’s 50-day simple moving average is $57.73 and its 200 day simple moving average is $59.97.

KB Home (NYSE:KBH) last released its quarterly earnings results on Tuesday, March 24th. The construction company reported $0.52 earnings per share for the quarter, meeting the consensus estimate of $0.52. The firm had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.10 billion. KB Home had a return on equity of 9.63% and a net margin of 5.96%.The company’s revenue was down 22.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.49 EPS. As a group, equities analysts predict that KB Home will post 8.42 earnings per share for the current 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 given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Thursday, February 5th. KB Home’s dividend payout ratio is 25.38%.

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.