Upbeat Forecast Sends KB Home Stock Skyrocketing

The stock is headed for its highest level since early June

Deputy Editor
Jan 13, 2022 at 8:59 AM
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The shares of KB Home (NYSE:KBH) are surging in pre-market trading, last seen up 9.7% at $46.50, following the homebuilder's fourth-quarter earnings report. KB Home posted profits of $1.91 per share for the quarter, which topped analysts' estimates, though its revenue just missed the mark. The firm also forecast housing revenues between $7.2 billion and $7.6 billion for this year, while its housing profit margin outlook exceeded expectations. 

The sunny forecast had the brokerage bunch heading in with bull notes. No less than six analysts lifted their  price targets, including Wedbush all the way to $73. More positive analyst attention could be on the way, as six of the 15 in coverage still consider KBH a "hold," compared to 11 "buy" or better ratings.

Short interest rose slightly ahead of KB Home's earnings event, up 4.3% in the last two reporting periods, and an unwinding of some of this pessimism could put even more wind at the stock's back. The 5.18 million shares sold short represent 6.7% of the stock's available float, and would take nearly a week to cover, at its average daily pace of trading. 

Today's pop has KBH headed for its highest level since early June, with the shares toppling a recent consolidation level at the $45 mark. Plus, the equity is eyeing its fourth-straight win day of gains, and sports a year-over-year lead of over 24%. 

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