KB Home (KBH)

KB Home's stock price was influenced by a challenging housing market in the past six months (July 2025 - January 2026). The company's stock experienced downgrades from analysts at Evercore ISI Group, Wells Fargo & Company, Raymond James, and Zacks Research. KB Home missed its fiscal first-quarter earnings and revenue forecasts in March 2025 and reduced its full-year guidance due to hesitant buyers and economic uncertainties, with further guidance cuts in June 2025 after a weak spring selling season. Demand was muted at the start of the spring 2025 selling season, leading to price adjustments, particularly in Florida. An executive vice president sold a significant number of shares in November 2025. The stock traded up on occasion, and homebuilder stocks rose after Federal Reserve rate cuts.

The demand for KB Home's products and services exhibits seasonality, with the spring selling season traditionally being the busiest period. However, the spring 2025 selling season was more muted than usual due to affordability challenges, elevated mortgage interest rates, and macroeconomic uncertainties. In response, KB Home made affordability adjustments, including price adjustments and mortgage-related support. Winter generally sees a slowdown in new home construction and home shopping activity, but improved building technologies have lessened the impact of weather on seasonality.

KB Home, founded in 1957 as Kaufman & Broad, is an American homebuilding company traded on the New York Stock Exchange. Headquartered in Los Angeles, California, it operates in the Consumer Discretionary sector, focusing on Construction and Homebuilding. KB Home constructs and sells various new homes, including single-family homes, townhomes, and condominiums, targeting first-time homebuyers and move-up buyers. The company uses a "Built-to-Order" model for personalization and provides financial services, including mortgage banking and insurance products.

KB Home operates in 49 markets across nine states in the United States, segmented into West Coast, Southwest, Central, and Southeast regions. The company has operations in California, Idaho, Washington (West Coast); Arizona, Nevada (Southwest); Colorado, Texas (Central); and Florida, North Carolina (Southeast).

KB Home has maintained a strong brand reputation, particularly in customer satisfaction and sustainability. As of June 2025, KB Home was ranked as the #1 customer-ranked national homebuilder on TrustBuilder for the fifth consecutive year, achieving 4.5 out of 5 stars. In 2024, KB Home achieved its highest-ever full-year overall customer satisfaction score of 96% through AvidCX and received 18 division-level AvidCX awards and 108 AvidCX Service Awards. In September 2025, KB Home was named to TIME's 2025 list of World's Best Companies and is recognized as an industry leader in sustainability.

KB Home's ownership is predominantly held by institutional investors, mutual funds, and individual shareholders. Institutional investors own a substantial portion of the company's stock, ranging from approximately 88.48% to 98.59%. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc., FMR LLC (Fidelity), State Street Corporation, Capital World Investors, Dimensional Fund Advisors Lp, Norges Bank, Assenagon Asset Management S.A., and JPMorgan Chase & Co. Insider ownership accounted for about 9.74% in April 2025, with notable individual shareholders including former CEO Bruce Karatz and current Chairman and CEO Jeffrey T. Mezger.