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<h2>Key Points</h2><ul><li>EMG Holdings initiated a new stake in KB Home last quarter, buying up 77,657 shares.</li><li>The quarter-end position value was $4.02 million, resulting from the new position initiation.</li><li>The transaction represented a 1.15% change in 13F reportable assets under management (AUM).</li><li>10 stocks we like better than KB Home ›</li></ul><p>On May 19, 2026, EMG Holdings disclosed a new position in <strong>KB Home</strong> <span class="ticker">(NYSE:KBH)</span>, acquiring 77,657 shares in a trade estimated at $4.57 million based on quarterly average pricing.</p><h2 id="what-happened">What happened</h2><p>According to its SEC filing dated May 19, 2026, EMG Holdings reported purchasing 77,657 shares of <strong>KB Home</strong> <span class="ticker">(NYSE:KBH)</span> during the first quarter. The estimated value of this transaction was $4.57 million, based on the quarterly average share price. As of March 31, 2026, the holding was valued at $4.02 million, reflecting the new position and subsequent price movements during the quarter.</p><h2 id="what-else-to-know">What else to know</h2><ul><li>Top five holdings after the filing:<ul><li>NYSE: EFC: $11.39 million (16.7% of AUM)</li><li>NYSE: MFA: $6.12 million (9.0% of AUM)</li><li>NYSE: MHO: $5.84 million (8.6% of AUM)</li><li>NYSE: PFSI: $5.74 million (8.4% of AUM)</li><li>NYSE: CPT: $5.39 million (7.9% of AUM)</li></ul></li><li>As of May 18, 2026, KB Home shares were priced at $45.64, down 15% over the past year and lagging the S&amp;P 500, which is instead up about 25%.</li></ul><h2 id="company-overview">Company overview</h2><section><table><tbody><tr><th>Metric</th><th>Value</th></tr><tr><td>Revenue (TTM)</td><td>$5.92 billion</td></tr><tr><td>Net Income (TTM)</td><td>$352.66 million</td></tr><tr><td>Dividend Yield</td><td>2%</td></tr><tr><td>Price (as of market close May 18, 2026)</td><td>$45.64</td></tr></tbody></table></section><h2 id="company-snapshot">Company snapshot</h2><ul><li>KB Home develops and sells single-family homes, townhomes, and condominiums, with additional offerings in insurance and title services.</li><li>The firm generates revenue primarily through home sales across multiple U.S. regions, complemented by ancillary financial services.</li><li>It targets first-time, move-up, and active adult homebuyers in states including California, Texas, Florida, and Arizona.</li></ul><p>KB Home focuses on residential construction for a diverse range of buyers, including first-time and move-up customers. The company leverages a regional operating model and offers integrated financial and insurance services.</p><h2 id="what-this-transaction-means-for-investors">What this transaction means for investors</h2><p>Homebuilder stocks have struggled under the weight of high mortgage rates and cautious consumers, but EMG’s new position suggests it still sees value here. Still, KB Home’s latest quarter was a bit uneven on the surface. Revenue fell 23% year over year to $1.08 billion, while diluted earnings per share dropped to $0.52 from $1.49 a year earlier. Gross margins also compressed, with housing gross profit margin sliding to 15.3% from 20.2% as the company leaned on price reductions and incentives to drive demand.<br/><br/>However, there were also some encouraging signs beneath the headline numbers. Net orders actually rose 3% to 2,846 homes, cancellation rates improved to 12% from 16%, and KB Home continued aggressively buying back stock, repurchasing $50 million worth of shares during the quarter.<br/><br/>For long-term investors, it’s important to remember that housing stocks can be very cyclical. If mortgage rates eventually ease, beaten-down homebuilders could recover faster than many investors currently expect.</p><h2>Should you buy stock in KB Home right now?</h2>
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<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of May 19, 2026. </em></p><p><em>Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends KB Home and recommends the following options: short July 2026 $60 calls on KB Home. The Motley Fool has a disclosure policy.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
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HOMZ

<p>EMG Holdings acquired 77,657 shares of KB Home (NYSE:KBH) last quarter, valued at $4.02 million, despite the stock being down 15% over the past year. The purchase reflects a 1.15% change in their assets under management. KB Home's revenue fell 23% year-over-year, but net orders rose 3%, indicating potential recovery if mortgage rates ease. Analysts suggest considering other stocks for investment, as KB Home was not among the top recommendations.</p>

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KB Home Stock Is Down 15%. So Why Did One Investor Buy Up $4 Million in Shares Last Quarter?