Wells Fargo Reiterates Sell Rating on KB Home

Wells Fargo reiterated its sell rating on KB Home (NYSE:KBH) on June 24, 2026, setting a price target of $52. The company's shares traded at $61.51 on Friday.

Other Institutional Activity in KB Home

BLACKROCK, INC. grew its holdings by 94,849 shares, ending with 9,382,121 shares worth about $485.5 million. FMR LLC reduced its position by 568,578 shares, leaving it with 5,080,393 shares valued at around $262.9 million, marking a 10.1% decrease. STATE STREET CORP added 73,408 shares, bringing its total to 3,333,544 shares with a value of approximately $172.5 million, a 2.3% increase. CAPITAL WORLD INVESTORS maintained its position with 2,957,918 shares valued at $153.1 million. VANGUARD PORTFOLIO MANAGEMENT LLC opened a new position with 2,903,154 shares, valued at about $150.2 million.

KB Home Stock Up 10.7%

Shares of NYSE:KBH traded near $61.51 on Friday. KB Home has a market cap of approximately $3.8 billion, with a P/E ratio of 11.72 and a forward P/E of 13.70. The stock's beta is 1.383, indicating higher volatility compared to the market. Over the past 52 weeks, the stock has ranged from $44.03 to $68.71, with a 50-day moving average of $51.53 and a 200-day moving average of $57.96. The company has a strong current ratio of 6.26 and a quick ratio of 0.584, with a debt-to-equity ratio of 51.85.

Recent Earnings

KB Home reported revenue of approximately $5.5 billion, with a slight revenue decline of 0.27%. The company achieved earnings per share (EPS) of $5.18, a net margin of 4.94%, and a return on equity (ROE) of 6.99%. The next earnings report is expected on June 23, 2026.

Dividend

KB Home pays an annual dividend rate of $1.00, yielding 1.65% with a payout ratio of 19.31%.

Insider Buying and Selling at KB Home

On April 23, 2026, several insiders, including Henry Cheryl Janet, Thomas Gilligan, Dorene Dominguez, Arthur Reginald Collins, Kevin Paul Eltife, and President and CEO Robert McGibney, each purchased 2,895 shares. These transactions were not part of a pre-arranged trading plan.

Analysts Set New Price Targets

On June 24, 2026, Truist Securities maintained a hold rating with a $56 target, RBC Capital reiterated a hold with a $53 target, and UBS maintained a buy rating with a $66 target. Citizens reiterated a buy rating, setting the highest target at $77. The consensus recommendation is to hold, with an average target price of $57.64, based on 11 analyst opinions.

About KB Home

KB Home is a residential construction company based in Los Angeles, California. It builds and sells single-family homes, townhomes, and condominiums across the United States, primarily catering to first-time, move-up, and active adult buyers. The company also provides mortgage banking and insurance services. Founded in 1957, KB Home operates in states like California, Texas, and Florida under the leadership of CEO Robert V. McGibney.

Bottom Line

Wells Fargo's reiteration of a sell rating for KB Home with a $52 target highlights a cautious outlook. Investors often watch analyst ratings to gauge market sentiment. Remember, 13F filings and analyst ratings are backward-looking and might not reflect current positions or market conditions.