Earnings Beat Pushes Homebuilding Stock Higher

KBH remains down more than 41% so far this year, though

Digital Content Manager
Jun 23, 2022 at 10:08 AM
facebook X logo linkedin


KB Home (NYSE:KBH) entered the earnings confessional yesterday to report a second-quarter earnings win of $2.32 per share, in addition to better-than-expected revenue of $1.72 billion. The homebuilding name noted it owns or controls the lots it needs to support delivery targets through 2024, but that sales are moderating due to higher mortgage interest rates and red-hot inflation.

Last seen up 6.6% at $27.96, the equity is bouncing off a June 17, two-year low of $24.78. The 80-day moving average has kept a tight lid on shares for most of 2022, though, while a ceiling at the $36 level has rejected multiple rallies since late March. Year-to-date, KBH is down 41.4%.

Analysts have kept mum since the earnings event, but are already bullish on KB Home stock. Of the 11 in question, 10 called it a "buy" or better, while the 12-month consensus target price of $41.29 is a 57.4% premium to current levels. Meanwhile, short interest is on the rise, up 15.1% in the last two reporting periods to account for 6.9% of the equity's available float. 

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KBH sports a 10-day put/call volume ratio of 7.63 that stands higher than all but 5% of readings from the past year. This means puts have been getting picked up at a much quicker-than-usual clip over the past two weeks.

The security's usually quiet options pits are brimming with activity today, with 2,221 calls and 3,004 puts exchanged so far, which is five times the intraday average. Most popular is the August 22 put, where new positions are being opened.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI