Zacks Research Has Bearish Forecast for KB Home Q3 Earnings

KB Home (NYSE:KBH) – Investment analysts at Zacks Research decreased their Q3 2025 earnings per share (EPS) estimates for KB Home in a report released on Monday, January 27th. Zacks Research analyst S. Mukherjee now anticipates that the construction company will post earnings per share of $2.32 for the quarter, down from their prior forecast of $2.40. The consensus estimate for KB Home’s current full-year earnings is $8.50 per share. Zacks Research also issued estimates for KB Home’s Q4 2025 earnings at $2.55 EPS, FY2025 earnings at $8.72 EPS, Q1 2026 earnings at $1.89 EPS, Q3 2026 earnings at $2.60 EPS, Q4 2026 earnings at $2.89 EPS and FY2026 earnings at $9.82 EPS.

A number of other brokerages have also commented on KBH. Royal Bank of Canada raised shares of KB Home from an “underperform” rating to a “sector perform” rating and decreased their price target for the stock from $70.00 to $67.00 in a report on Friday, January 10th. Barclays dropped their price objective on KB Home from $85.00 to $60.00 and set an “equal weight” rating for the company in a report on Tuesday, January 14th. UBS Group reduced their target price 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 dropped their price target on KB Home from $76.00 to $71.00 and set a “neutral” rating for the company in a research note on Monday. Finally, Raymond James restated an “outperform” rating and issued a $80.00 price objective (down from $93.00) on shares of KB Home in a report on Tuesday, January 21st. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat, KB Home has an average rating of “Hold” and an average target price of $76.21.

KB Home Price Performance

KBH opened at $68.80 on Thursday. KB Home has a one year low of $58.15 and a one year high of $89.70. The company has a fifty day moving average price of $71.05 and a 200-day moving average price of $77.91. The firm has a market capitalization of $5.05 billion, a P/E ratio of 8.12, a price-to-earnings-growth ratio of 0.93 and a beta of 1.86.

KB Home (NYSE:KBH) last announced its quarterly earnings results on Monday, January 13th. The construction company reported $2.52 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts’ expectations of $1.99 billion. During the same period in the prior year, the business posted $1.85 earnings per share. The company’s revenue was up 19.5% on a year-over-year basis.

Hedge Funds Weigh In On KB Home

Several institutional investors have recently bought and sold shares of the stock. Wealth Enhancement Advisory Services LLC grew its stake in shares of KB Home by 0.8% in the 3rd 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 lifted its stake in shares of KB Home by 0.9% during 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 during the last quarter. Principal Securities Inc. grew its holdings in KB Home by 43.6% in the fourth quarter. Principal Securities Inc. now owns 590 shares of the construction company’s stock worth $39,000 after purchasing an additional 179 shares during the last quarter. CWM LLC grew its stake in shares of KB Home by 10.2% during the third quarter. CWM LLC now owns 1,975 shares of the construction company’s stock worth $169,000 after acquiring an additional 183 shares during the last quarter. Finally, Blue Trust Inc. lifted its stake 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 buying an additional 194 shares during the period. 96.09% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at KB Home

In related news, CFO Jeff Kaminski sold 27,500 shares of KB Home stock in a transaction that occurred on Tuesday, January 28th. The stock was sold at an average price of $68.77, for a total transaction of $1,891,175.00. Following the sale, the chief financial officer now owns 34,473 shares of the company’s stock, valued at approximately $2,370,708.21. This trade represents a 44.37 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 4.44% of the stock is currently owned by corporate insiders.

KB Home Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, February 20th. Investors of record on Thursday, February 6th will be issued a $0.25 dividend. The ex-dividend date of this dividend is Thursday, February 6th. This represents a $1.00 dividend on an annualized basis and a yield of 1.45%. KB Home’s dividend payout ratio is currently 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.