Zacks Research Has Optimistic Opinion of KB Home Q3 Earnings

KB Home (NYSE:KBH) – Analysts at Zacks Research boosted their Q3 2027 earnings estimates for shares of KB Home in a research report issued on Tuesday, October 13th. Zacks Research analyst Team now anticipates that the construction company will post earnings per share of $1.08 for the quarter, up from their prior estimate of $1.01. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for KB Home’s current full-year earnings is $3.26 per share. Zacks Research also issued estimates for KB Home’s FY2027 earnings at $4.11 EPS and Q3 2028 earnings at $1.37 EPS.

KB Home (NYSE:KBH) last issued its quarterly earnings results on Tuesday, September 22nd. The construction company reported $1.05 EPS for the quarter, topping the consensus estimate of $0.88 by $0.17. The company had revenue of $1.30 billion during the quarter, compared to analyst estimates of $1.30 billion. KB Home had a net margin of 4.39% and a return on equity of 6.56%. The firm’s revenue was down 20.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.61 EPS.

A number of other analysts have also recently commented on the stock. Morgan Stanley started coverage on shares of KB Home in a research note on Thursday, October 1st. They set an “underweight” rating and a $39.00 target price for the company. Melius Research began coverage on shares of KB Home in a research note on Tuesday, October 6th. They issued a “sell” rating and a $43.00 price target on the stock. Bank of America decreased their price target on shares of KB Home from $56.00 to $54.00 and set a “neutral” rating on the stock in a research note on Wednesday, September 23rd. Citigroup reiterated an “outperform” rating on shares of KB Home in a report on Wednesday, September 23rd. Finally, Evercore set a $59.00 price objective on KB Home in a research note on Wednesday, September 23rd. Four equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $53.08.

KB Home Stock Down 0.8%

KBH opened at $41.88 on Thursday. The company has a market cap of $2.54 billion, a price-to-earnings ratio of 10.77, a PEG ratio of 2.19 and a beta of 1.34. KB Home has a 52-week low of $40.92 and a 52-week high of $67.57. The firm’s fifty day simple moving average is $50.56 and its two-hundred day simple moving average is $52.44.

KB Home Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Thursday, November 12th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Thursday, November 12th. KB Home’s dividend payout ratio is currently 28.17%.

Insider Buying and Selling at KB Home

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

Hedge Funds Weigh In On KB Home

Several hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in KB Home during the second quarter worth about $618,489,000. Donald Smith & CO. Inc. purchased a new stake in KB Home during the 2nd quarter valued at about $108,652,000. Bamco Inc. NY acquired a new stake in KB Home in the 2nd quarter valued at about $37,500,000. Bank of New York Mellon Corp acquired a new stake in KB Home in the 2nd quarter valued at about $35,837,000. Finally, Bank of America Corp DE acquired a new stake in KB Home in the 2nd quarter valued at about $35,377,000. 96.09% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting KB Home

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

• Positive Sentiment: Zacks Research raised its FY2026 earnings estimate to $3.21 per share from $3.11, although the revised forecast remains slightly below the broader consensus of about $3.25–$3.26. Zacks continues to rate KB Home “Strong Sell.”
• Neutral Sentiment: KB Home’s board approved long-term incentive awards for executives on October 8. The grants may align management with long-term shareholder performance, but the announcement does not provide an immediate change to earnings or cash flow. KB Home Updates Executive Long-Term Incentive Awards
• Neutral Sentiment: Wall Street brokerages collectively assigned KB Home a “Hold” rating, suggesting limited conviction that the shares will rebound soon. KB Home Stock Rated Hold by Wall Street Brokerages
• Negative Sentiment: Zacks cut EPS estimates across several periods, including Q4 2026 to $1.21 from $1.30, Q1 2027 to $0.63 from $0.65, Q2 2027 to $0.80 from $0.82, Q4 2027 to $1.60 from $1.61, Q1 2028 to $0.87 from $0.94, Q2 2028 to $1.07 from $1.12, and FY2028 to $5.03 from $5.12. The widespread reductions point to softer expected profitability and are likely the main reason for the stock’s decline.

About KB Home

KB Home is a national homebuilder that designs, constructs and sells single-family homes and townhomes. The company offers homes in a range of floor plans, sizes and price points, with options that allow buyers to personalize features and finishes. Its communities typically include amenities such as parks, open spaces and other neighborhood improvements.

Founded in 1957, KB Home is headquartered in Los Angeles, California. The company serves residential markets across the United States, including Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, South Carolina, Texas and Washington.