Jeffrey T. Mezger, Executive Chairman of homebuilder KB Home (NYSE:KBH), sold common stock valued at approximately $15.2 million between July 13 and July 15, 2026. These transactions followed the exercise of stock options. The sales occurred as KB Home shares traded near $56.42, below InvestingPro’s Fair Value estimate, suggesting the stock remains undervalued. The company currently carries a market capitalization of $3.46 billion and trades at a P/E ratio of 13.51.
Over the three-day period, Mr. Mezger sold a total of 274,952 shares of KB Home common stock. On July 13, he sold 82,047 shares at a weighted average price of $54.95, with individual transactions ranging from $54.54 to $55.53 per share. An additional 12,825 shares were sold the same day at an average price of $55.81, with prices ranging from $55.55 to $56.42. The following day, July 14, saw the sale of 89,858 shares at an average price of $54.87, with transactions ranging from $54.24 to $55.23, and 39,204 shares at an average of $55.45, ranging from $55.24 to $55.87. On July 15, Mr. Mezger sold 21,010 shares at an average price of $56.24, with prices ranging from $55.52 to $56.51, and 30,008 shares at an average of $56.70, ranging from $56.52 to $56.94. The overall sales occurred within a price range of $54.87 to $56.7 per share.
Preceding these sales, Mr. Mezger acquired 279,952 shares of common stock through the exercise of non-qualified stock options. These options were exercised at a price of $16.21 per share, totaling approximately $4.46 million in acquisitions. The options had vested in three equal installments on October 6, 2017, 2018, and 2019, and are set to expire on October 6, 2026.
Following these transactions, Mr. Mezger directly owns 1,894,234 shares of KB Home common stock. According to InvestingPro Tips, KB Home has maintained dividend payments for 41 consecutive years, demonstrating long-term financial stability despite near-term headwinds. The company currently offers a 1.8% dividend yield. Investors seeking deeper insights can access KB Home’s comprehensive Pro Research Report, one of 1,400+ available reports that transform complex Wall Street data into clear, actionable intelligence.
In other recent news, KB Home reported its second-quarter fiscal 2026 revenue, which exceeded Wall Street expectations, reaching $1.11 billion compared to the anticipated $1.09 billion. However, the company’s earnings per share slightly missed forecasts, coming in at $0.43 versus the expected $0.45. Despite this, the company’s shares rose in after-hours trading, likely due to positive margin recovery plans and a stronger build-to-order mix. UBS adjusted its earnings estimates for KB Home, lowering its forecast for fiscal 2026 to $3.38 per share from $3.60, while also raising its stock price target to $66 based on housing stability. Truist Securities also raised its price target for the company to $56, maintaining a Hold rating, influenced by margin outlook improvements. Citizens reiterated a Market Outperform rating with a $77 price target, noting that while GAAP earnings per share fell below consensus due to a tax rate issue, revenue matched expectations. Additionally, KB Home’s board declared a quarterly cash dividend of $0.25 per share, payable in August 2026.
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