Wall Street Zen downgrades KB Home stock to Sell

Published on 10/05/2026 at 09:19 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Third-quarter revenue fell 20.00 percent to USD 1.30 billion. KB Home stock costs EUR 40.95 on October 5, 2026 after EUR 40.66, plus 0.71 percent.

KBH, US48666K1097, Illustration mit AI erstellt.

KB Home (US48666K1097) was downgraded from Hold to Sell by Wall Street Zen on October 3, 2026, as MarketBeat reported. The rating change follows KB Home's third-quarter results, which showed lower revenue and earnings despite an earnings-per-share beat.

Third-quarter revenue falls 20.00 percent

KB Home reported USD 1.30 billion in revenue for the third quarter ended August 31, 2026, down 20.00 percent from USD 1.62 billion a year earlier, according to the company's third-quarter release dated September 22, 2026. Diluted earnings per share came to USD 1.05, down from USD 1.61, while net income fell to USD 65.3 million from USD 109.8 million.

Homes delivered declined 19.00 percent to 2,732, and the housing gross profit margin fell to 16.50 percent from 18.20 percent. The pressure was partly offset by backlog growth: homes in backlog increased 2.00 percent year over year to 4,398, with backlog value up 3.00 percent to USD 2.05 billion.

Analyst targets move lower

MarketBeat said the broader analyst consensus remained Hold with a USD 54.58 target on October 3, 2026. The same report listed Wells Fargo cutting its target from USD 52.00 to USD 50.00 on September 11, 2026, while Citizens JMP lowered its target from USD 77.00 to USD 70.00 on September 23, 2026.

Evercore ISI also cut its target for KB Home from USD 62.00 to USD 59.00 on September 23, 2026, while retaining an In Line rating, according to Markets Insider. The range of targets shows how sharply analyst views differ as mortgage costs and affordability weigh on home demand.

KB Home stock trades in morning action

KB Home was trading at EUR 40.95 at Lang & Schwarz on October 5, 2026 at 9:15 a.m. CEST, up 0.71 percent versus the prior close of EUR 40.66 on October 2, 2026. The quoted price sits within the USD 44.03 to USD 67.57 52-week range, while the company's market capitalization was USD 2.8 billion as of October 2, 2026.