Zacks Research Comments on KB Home's Q1 Earnings (NYSE:KBH)

KB Home (NYSE:KBH - Free Report) - Equities researchers at Zacks Research reduced their Q1 2025 EPS estimates for shares of KB Home in a research report issued on Monday, January 27th. Zacks Research analyst S. Mukherjee now expects that the construction company will post earnings of $1.62 per share for the quarter, down from their previous forecast of $1.73. The consensus estimate for KB Home's current full-year earnings is $8.42 per share. Zacks Research also issued estimates for KB Home's Q2 2026 earnings at $2.44 EPS and FY2027 earnings at $11.20 EPS.

Several other brokerages also recently issued reports on KBH. Raymond James reissued an "outperform" rating and set a $80.00 price objective (down previously from $93.00) on shares of KB Home in a research report on Tuesday, January 21st. UBS Group dropped their price target on KB Home from $105.00 to $100.00 and set a "buy" rating on the stock in a research note on Wednesday, January 8th. Bank of America cut their price target on KB Home from $76.00 to $71.00 and set a "neutral" rating on the stock in a report on Monday, January 27th. Keefe, Bruyette & Woods decreased their price objective on KB Home from $85.00 to $76.00 and set a "market perform" rating for the company in a report on Friday, January 17th. Finally, Royal Bank of Canada upgraded KB Home from an "underperform" rating to a "sector perform" rating and cut their target price for the company from $70.00 to $67.00 in a research note on Friday, January 10th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, KB Home currently has an average rating of "Hold" and a consensus target price of $76.21.

KB Home Stock Down 2.5 %

KBH stock traded down $1.69 during mid-day trading on Wednesday, hitting $67.07. 1,367,333 shares of the company were exchanged, compared to its average volume of 1,501,090. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.34 and a current ratio of 5.51. KB Home has a 1-year low of $58.15 and a 1-year high of $89.70. The firm's 50 day simple moving average is $70.62 and its 200 day simple moving average is $77.75. The firm has a market cap of $4.84 billion, a P/E ratio of 7.92, a P/E/G ratio of 0.97 and a beta of 1.86.

KB Home (NYSE:KBH - Get Free Report) last posted its earnings results on Monday, January 13th. The construction company reported $2.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.44 by $0.08. KB Home had a return on equity of 16.46% and a net margin of 9.45%. The firm had revenue of $2 billion during the quarter, compared to analysts' expectations of $1.99 billion. During the same period in the previous year, the firm earned $1.85 earnings per share. The company's revenue was up 19.5% on a year-over-year basis.

Institutional Investors Weigh In On KB Home

Institutional investors have recently made changes to their positions in the company. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of KB Home by 0.8% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 21,494 shares of the construction company's stock worth $1,842,000 after buying an additional 161 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in KB Home by 0.9% in the 2nd quarter. Thrivent Financial for Lutherans now owns 18,578 shares of the construction company's stock worth $1,304,000 after purchasing an additional 162 shares in the last quarter. Principal Securities Inc. raised its stake in KB Home by 43.6% in the 4th quarter. Principal Securities Inc. now owns 590 shares of the construction company's stock worth $39,000 after purchasing an additional 179 shares in the last quarter. CWM LLC boosted its holdings in KB Home by 10.2% in the 3rd quarter. CWM LLC now owns 1,975 shares of the construction company's stock valued at $169,000 after purchasing an additional 183 shares during the period. Finally, Blue Trust Inc. increased its holdings in shares of KB Home by 15.3% during the fourth quarter. Blue Trust Inc. now owns 1,465 shares of the construction company's stock worth $96,000 after purchasing an additional 194 shares during the period. Institutional investors own 96.09% of the company's stock.

Insider Transactions at KB Home

In related news, CFO Jeff Kaminski sold 27,500 shares of the company's stock in a transaction dated Tuesday, January 28th. The shares were sold at an average price of $68.77, for a total value of $1,891,175.00. Following the transaction, the chief financial officer now owns 34,473 shares in the company, valued at approximately $2,370,708.21. This represents a 44.37 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 4.44% of the stock is currently owned by corporate insiders.

KB Home Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, February 20th. Stockholders of record on Thursday, February 6th will be given a $0.25 dividend. The ex-dividend date is Thursday, February 6th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.49%. KB Home's payout ratio is 11.81%.

About KB Home

KB Home operates as a homebuilding company in the United States. It operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells various homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.