Schaeffer's 43rd Anniversary Stock Picks in 2024

KB Home Stock Pivots Lower Despite Quarterly Win

No fewer than three analysts adjusted their price targets

Digital Content Manager
Sep 21, 2023 at 10:55 AM
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KB Home (NYSE:KBH) stock is down 3.9% to trade at $46.20 at last check, despite the company yesterday sharing better-than-expected fiscal third-quarter earnings and revenue. A 41% drop in net income to $149.9 million is hurting the shares instead. Three brokerages also updated their price targets on KBH in response, with Wedbush adjusting from $64 to $55 earlier.
 

The 160-day moving average is containing today's pullback, which has the stock trading at its lowest level since June. The $52 region has also emerged as a ceiling after KBH's July 20, 16-year high of $55.37. The equity maintains a healthy 45.4% lead for 2023, however.

Options volume is running at nine times the intraday average, with 4,080 puts and 2,911 calls exchanged so far. The November 45-strike put is most popular, with new positions being opened there.

Short-term options traders lean overwhelmingly bearish. This is per KB Home stock's  Schaeffer's put/call open interest ratio (SOIR) of 6.25 that ranks in the top percentile of annual readings.

 

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