The homebuilder slashed its fiscal 2025 revenue outlook
Homebuilder KB Home (NYSE:KBH) reported worse-than-expected fiscal first-quarter earnings and revenue after the close yesterday, slashing its fiscal 2025 revenue outlook as well. In response, no fewer than five analysts lowered their price targets, including Barclays to $56 from $60. At last glance, KBH was down 5.6% to trade at $58.32.
The equity is on track for its worst single-day percentage loss since January as it trades at 52-week lows. Shares shed 33.4% in the last six months, and have struggled with overhead pressure from the 40-day moving average since December.
Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KBH's 50-day put/call volume ratio of 5.68 ranks in the 97th percentile of annual readings. This means options traders have been much more bearish than usual.
Drilling down to today's options activity, with 4,218 puts have already crossed the tape -- nine times the intraday average volume -- compared to 1,335 calls. Most active is the April 55 put, where new positions are being opened.