KB Home stock is brushing off better-than-expected fourth-quarter results
KB Home (NYSE:KBH) stock is slipping today, despite better-than-expected fourth-quarter results, after the homebuilding name announced a decrease in home selling prices and the number of homes delivered. Plus, Seaport Research downgraded KBH to “neutral” from “buy.” No fewer than seven other analysts lifted their price targets, however, with the highest from UBS to $82.
At last glance, KBH was down 3.6% at $60.91. Shares are falling from yesterday’s roughly 18-year high of $64, but have added 70.6% in the past 12 months, with recent support at the 40-day moving average.
In the options pits, 3,146 calls and 4,862 puts have been exchanged so far today, which is already nine times the average daily volume. Expiring tomorrow, the weekly 1/12 61-strike put is the most popular, where new positions are being opened.
It’s also worth noting that despite the stock’s latest rally, short interest has been building, and represents 9.6% of its available float. It would take shorts over five days to cover their bets, at KBH’s average pace of trading.