KB Home Shares Face Mounting Pressure as Short Interest Climbs

KB Home’s stock is underperforming the broader homebuilder sector, declining 2.80% to $65.92. While industry peers are posting strong gains, the company contends with a significant rise in bearish bets and conflicting analyst assessments.

Recent quarterly results reveal clear operational challenges. Revenue fell 10.5% to $1.53 billion, while earnings per share dropped sharply from $2.15 to $1.50. Current projections anticipate a 23.3% decline in profit for this year, though analysts forecast a potential recovery with an 8.55% increase next year. Despite these headwinds, valuation metrics appear attractive with a price-to-earnings ratio of 8.95.

Short Sellers Target Homebuilder

A notable development for KB Home is the substantial increase in short interest. Currently, 6.16 million shares have been sold short, representing 9.43% of the free float. This marks a 12.20% surge... Read more...