KBH is testing several key levels after today's bull gap
KB Home (NYSE:KBH) stock is up 6.1% at $67.98 at last glance, after the homebuilder forecasted higher housing revenue in 2025. The company also reported fourth-quarter earnings of $2.52 per share on $2 billion in revenue, beating analyst estimates of $2.45 per share on $1.99 billion.
In response, KBH received two price-target cuts and two price-target hikes from the brokerage bunch. The stock's 12-month consensus price target now sits at $78 -- a 17% premium to current levels. The majority of analysts are bearish on KBH, with just 13 of the 16 in coverage carrying a "hold" or worse rating.
On the charts, KB Home stock has been consolidating around $65 since an extended pullback in December. Today's pop has the stock breaking above pressure at its 10- and 20-day moving averages, though the 40-day trendline appears to be keeping a cap on gains. Year over year, the equity is up 10%.
The stock's typically quiet options pits are bursting with activity. At last check, KBH has seen 4.1 times its average daily options volume already, with the most activity at the January 70 call.