Ultime notizie per KB Home (NYSE:KBH) Azioni

KB Home

KB Home is an American construction company that focuses on residential construction in United States. The company builds single-family homes and communities across different geographical segments which include West Coast which also derives the majority of the revenue, Southwest, Central, and Southeast. The company operates in several markets and focuses on first-time and move-up homebuyers. It also invests in land acquisition and development to support future building activities and is also engaged in financial services operations which includes providing mortgage banking services through its joint venture with a third party.

KB Home's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) short percent of float has risen 5.03% since its last report. The company recently reported that it has 6.46 million shares sold short, which is 14.21% of all regular shares that are available for trading. Based on its trading volume, it would take traders 6.25 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>KB Home Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1730385919_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for KB Home has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing KB Home's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, KB Home's peer group average for short interest as a percentage of float is 5.28%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

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USA Pending Home Sales (MoM) For September 7.4% Vs 1.9% Est.; 0.6% Prior

Another billionaire investor is rooting for Republican presidential candidate Donald Trump&#8217;s victory in the Nov. 5 election and has accordingly positioned his portfolio. The call comes on the heels of former hedge fund manager Stanley Druckenmiller&#8216;s<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41375637/market-very-convinced-of-a-trump-win-says-stanley-druckenmiller-why-billionaire-inv"> similar prediction.</a>
What&#8217;s In Store In Political Arena: &#8220;We believe that the likelihood of a Republican victory in the White House has increased, which would have a positive impact on certain sectors and the market overall,&#8221; said hedge fund Third Point founder and CEO Daniel Loeb said in the firm&#8217;s third-quarter investor letter. 
The hedge fund manager said the &#8220;America First&#8221; tariffs will increase domestic manufacturing, infrastructure spending, and prices of certain materials and commodities. He also said a potential reduction in regulation in the activist antitrust stance of the Biden-Harris administration would unleash productivity and a wave of corporate activity.
&#8220;Accordingly, we have increased certain positions that could benefit from such a scenario via both stock and option purchases and continue to shift our portfolio away from companies that will not,&#8221; the hedge fund manager said. A study of Senate races will likely see Republicans establishing a majority, thus precluding a &#8220;Blue Sweep&#8221; if Kamala Harris wins the race to the White House, according to the hedge-fund manager.
He warned of a &#8220;Blue sweep&#8221; theoretically ushering in crushing taxes, stifling regulations, and a headwind to growth.
See Also:<a href="https://www.benzinga.com/money/cyclical-stocks"> What Are Cyclical Stocks</a>
Economic Outlook: Loeb reassured investors regarding the economy. &#8220;In the economy, we see no evidence of recession, slowing inflation, and a real interest rate that still needs to come down,&#8221; he said.
The hedge fund manager also sees healthy consumer spending, and active levels of individual investing, providing a liquidity backdrop to sustain market levels. The setup is good for event-driven investing, he said, adding that &#8220;the potential for risk arbitrage transactions and corporate activity could usher in a golden age for the strategy.&#8221;
Third Point&#8217;s Q3 Winners &amp; Losers: Third Point Offshore Fund generated a return of 3.9%, taking the annualized net returns to 13.1%. The third-quarter returns of the fund, however, paled before the S&amp;P 500&#8217;s 5.9% gain and the MSCI World Index&#8217;s 6.5% rise.
Loeb noted that the global market gains continued in the third quarter but the rally broadened out in the quarter, with the Magnificent 7 trailing the broader market for the first time since the fourth quarter of 2022. Rate-sensitive stocks and cyclicals outperformed as the market looked ahead to the easing cycle, he added.
The top gainers and decliners of the fund are as follows:
Gainers
<ul>
<li>Privately-held R2 Semiconductor</li>
<li>PG&amp;E Corporation&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PCG#NYSE">PCG</a>) Pacific Gas and Electric Company&nbsp;subsidiary</li>
<li>Utility Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>)</li>
<li>KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>)</li>
<li>Lifesciences and diagnostics company Danaher Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHR#NYSE">DHR</a>)</li>
</ul>
Losers:
<ul>
<li>Bath &amp; Body Works, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBWI#NYSE">BBWI</a>)</li>
<li>Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</li>
<li>Advance Auto Parts, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAP#NYSE">AAP</a>)</li>
<li>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)</li>
<li>Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</li>
</ul>
Loeb also said his fund initiated a position in Danish freight forwarder DSV. &#8220;We believe DSV can earn more than 100 DKK per share in 2027 and see significant upside for one of Europe's best companies,&#8221; he said.
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that tracks the performance of the S&amp;P 500 Index, traded up 0.25% to $583.78&nbsp;in premarket trading on Friday, according to<a href="https://benzinga.grsm.io/register174"> Benzinga Pro data.</a>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41374232/amid-nvidias-stratospheric-rally-billionaire-investor-druckenmiller-regrets-cashing-out-of-ai-st">Amid Nvidia&#8217;s Stratospheric Rally, Billionaire Investor Druckenmiller Regrets Cashing Out Of AI Stalwart&#8217;s Stock: &#8216;I&#8217;m Licking My Wounds From A Bad Sale&#8217;</a></li>
</ul>
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Hedge Fund Billionaire Daniel Loeb Bets On Trump Win, Singles Out This Recent Buy As Having 'Significant Upside Potential'

Hurricane Milton has left a significant mark on the Florida housing market, with cities such as Orlando, Tampa, Lakeland, Sarasota and Daytona Beach facing the <a href="https://www.benzinga.com/topic/hurricane-milton">brunt of the storm. </a>
As recovery efforts begin, analysts expect the state&#8217;s homebuilding sector to absorb an estimated $1.7 billion to $2.5 billion hit, according to a report from Goldman Sachs analyst Susan Maklari.
<h1 class="wp-block-heading">Homebuilder Exposure To Milton And Potential Delays</h1>
Homebuilders with significant exposure in the affected regions face potential delays in construction and home closings.
Maklari notes that major homebuilders such as PulteGroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHM#NYSE">PHM</a>), Lennar Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>), and D.R. Horton Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHI#NYSE">DHI</a>) have significant exposure in the impacted regions, with 17%, 14%, and 11% of their 2023 closings, respectively, concentrated in these areas.
In contrast, builders like KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) and Toll Brothers Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOL#NYSE">TOL</a>) have minimal exposure, with less than 3% each. Historically, homebuilders in Florida have faced delays of around 4-6 weeks following severe weather events, primarily due to resource allocation to existing community recovery efforts and labor shortages. 
Given Hurricane Milton&#8217;s strength, widespread geographic reach, and timing — just two weeks after Hurricane Helene — Maklari believes these delays could be extended even further.
"We expect some closings to be delayed, but this appears to be more of a timing issue. Any potential shortfall in Q4 will likely be made up in early 2025," Maklari said. 
The good news for builders is that many homes are already in later construction stages as they aim to hit year-end targets, and most builders tend to avoid constructing in floodplains.
Goldman Sachs estimates the total industry impact to fall between $1.7 billion and $2.5 billion, based on historical delays and local median home prices.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/10/41278536/florida-is-a-top-state-for-new-home-builds-could-hurricane-milton-slow-it-down-4-homebuilder-sto">Florida Is A Top State For New Home Builds — Could Hurricane Milton Slow It Down? 4 Homebuilder Stocks That Could Come Under Pressure</a>
<h1 class="wp-block-heading">Builder Exposure Breakdown: Orlando And Tampa</h1>
The Orlando and Tampa metropolitan areas are two of the hardest-hit regions. 
In Orlando, D.R. Horton leads the market with 2,351 closings in 2023, accounting for 16.7% market share, followed closely by Lennar Corp. with 2,242 closings and a 15.9% share. 
In Tampa, Lennar has an even larger presence, with 3,570 closings making up 28.7% of the market, while D.R. Horton holds 21.6%.
<h1 class="wp-block-heading">Top Homebuilders In Orlando-Kissimmee-Sanford, Fla. MSA (2023 Unit Closings):</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td># Company</td>
<td>Closings</td>
<td>Mkt. Share</td>
<td>% of Homes Closed by Company</td>
</tr>
<tr>
<td>1 D.R. Horton</td>
<td>2,351</td>
<td>16.7%</td>
<td>2.6%</td>
</tr>
<tr>
<td>2 Lennar Corp.</td>
<td>2,242</td>
<td>15.9%</td>
<td>3.1%</td>
</tr>
<tr>
<td>3 The Villages of Lake Sumter</td>
<td>2,129</td>
<td>15.1%</td>
<td>77.9%</td>
</tr>
<tr>
<td>4 PulteGroup</td>
<td>1,852</td>
<td>13.2%</td>
<td>6.5%</td>
</tr>
<tr>
<td>5 Dream Finders Homes Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFH#NYSE">DFH</a>)</td>
<td>791</td>
<td>5.6%</td>
<td>10.8%</td>
</tr>
</tbody>
</table>
</figure>
<h1 class="wp-block-heading">Top Homebuilders In Tampa-St. Petersburg-Clearwater, Fla. MSA (2023 Unit Closings):</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Rank</th>
<th>Company</th>
<th>Closings</th>
<th>Market Share (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>1</td>
<td> Lennar Corp.</td>
<td> 3,570</td>
<td> 28.7</td>
</tr>
<tr>
<td>2</td>
<td> D.R. Horton</td>
<td> 2,692</td>
<td> 21.6</td>
</tr>
<tr>
<td>3</td>
<td> Homes by Westbay</td>
<td> 792</td>
<td> 6.4</td>
</tr>
<tr>
<td>4</td>
<td> PulteGroup</td>
<td> 756</td>
<td> 6.1</td>
</tr>
<tr>
<td>5</td>
<td> M/I Homes</td>
<td> 747</td>
<td> 6.0</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: Goldman Sachs</figcaption></figure>
<h1 class="wp-block-heading">Muted But Prolonged Impact On Building Products Demand</h1>
The broader building products sector is expected to experience a relatively muted response, with demand for materials such as roofing, flooring and insulation likely spread out over several months.
While Goldman Sachs does not anticipate a significant rise in overall product volumes, the short-term need for repairs could lead to temporary spikes in activity.
When it comes to damage to existing homes, the extent of destruction depends on the storm's specific characteristics, such as wind speed and flooding levels. 
Roofs, windows, and siding are typically most affected by wind damage, while floors, wallboard and insulation often suffer during flooding events. Key players in these product categories include:
<ul>
<li>Roofing: Owens Corning Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OC#NYSE">OC</a>), Carlisle Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSL#NYSE">CSL</a>)</li>
<li>Windows: JELD-WEN Holding Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JELD#NYSE">JELD</a>)</li>
<li>Siding: Louisiana-Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPX#NYSE">LPX</a>)</li>
<li>Flooring: Mohawk Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MHK#NYSE">MHK</a>)</li>
<li>Insulation: Owens Corning Inc., TopBuild Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLD#NYSE">BLD</a>), Installed Building Products Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBP#NYSE">IBP</a>)</li>
</ul>
"Reconstruction demand typically spans several months," Maklari said, citing past hurricanes. 
Cleanup and insurance claims processing often delay actual repairs, with the full rebuilding efforts sometimes extending over 4 to 6 months. 
For example, Owens Corning reported that Hurricane Ian in 2022 resulted in 4 million squares of roofing damage, representing approximately 2.5% of annual roofing shipments.
Goldman Sachs does not foresee a sharp rise in overall building product volumes from Hurricane Milton. Instead, they expect a &#8220;pull-forward&#8221; in demand, meaning that short-term rebuilding activity might be strong, but it won't significantly raise long-term volumes. This could result in choppy revenue comparisons as the industry moves past the initial recovery phase.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/top-stories/24/10/41277323/insurance-stocks-rebound-as-investors-assess-hurricane-miltons-aftermath-3-stocks-to-watch">Insurance Stocks Rebound As Investors Assess Hurricane Milton&#8217;s Aftermath: 3 Stocks To Watch</a></li>
</ul>
Photo: Shutterstock

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Hurricane Milton To Deliver $2.5B Blow To Florida's Homebuilding Sector, Goldman Sachs Says

Wells Fargo analyst Sam Reid downgrades KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) from Equal-Weight to Underweight and raises the price target from $80 to $83.

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Wells Fargo Downgrades KB Home to Underweight, Raises Price Target to $83

KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>), one of the largest and most trusted homebuilders in the U.S., today announced that Jeff J. Kaminski, its Executive Vice President and Chief Financial Officer, has decided to retire in early 2025 after more than 14 years in that position. Mr. Kaminski will continue to serve as Chief Financial Officer through the filing of KB Home's 2024 Annual Report on Form 10-K and plans to assist the Company with the transition of his position. KB Home is following its succession planning process to identify its next chief financial officer.

Management

KB Home Chief Financial Officer Jeff J. Kaminski To Retire In Early 2025

In response to changing market conditions in Florida and Texas, leading homebuilder KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) has decided to slash home prices in Austin, San Antonio, Orlando, and Jacksonville.
What Happened: According to KB Home&#8217;s Chief Operating Officer, Robert McGibney, the company has reduced home prices in these regions due to shifts in the housing markets of Florida and Texas.
Earlier this week, <a href="https://www.benzinga.com/news/earnings/24/09/41014725/kb-home-q3-earnings-revenue-beat-eps-beat-net-orders-flat-variability-in-demand-across-the-quarter">the company reported third-quarter financial results</a>. The company  reported third-quarter revenue of $1.75 billion, beating analyst estimates of $1.728 billion. The U.S. homebuilder reported third-quarter earnings of $2.04 per share, beating analyst estimates of $2.02 per share. 
"We experienced variability in demand across the quarter, with softening in late June through July, as buyers continued to evaluate elevated mortgage interest rates, and general economic concerns were rising. As rates moderated in August, our net orders improved," said&nbsp;Jeffrey Mezger, chairman and CEO of KB Home.
According to the ResiClub <a href="https://www.resiclubanalytics.com/p/kb-home-we-re-cutting-home-prices-in-austin-san-antonio-orlando-and-jacksonville">report</a>, KB Home expects full-year 2024 housing revenues in the range of $6.85 billion to $6.95 billion. Average selling prices for the full year are expected to be approximately $490,000.
According to McGibney, the company has witnessed a revival in sales since the implementation of the price cuts, especially in August, with sales improving each week of the month and continuing into September.
Also Read: <a href="https://www.benzinga.com/news/earnings/24/09/41070482/kb-home-slips-after-earnings-whats-next-for-homebuilders">KB Home Slips After Earnings: What&#8217;s Next for Homebuilders?</a>
ResiClub highlighted that the markets of Austin, San Antonio, Orlando, and Jacksonville are among the few metro area housing markets where active inventory for sale has bounced back to pre-pandemic levels. This rise in inventory was flagged as a critical metric to monitor for potential falling home prices.
Despite the price reductions, KB Home&#8217;s net new orders in Q3 2024 remained essentially unchanged compared to Q3 2023. The company&#8217;s gross margin continues to slowly compress after skyrocketing during the Pandemic Housing Boom, but it has not yet fully returned to pre-pandemic levels.
Why It Matters: The decision by KB Home to reduce prices in these key markets is a significant indicator of the changing dynamics in the housing market. The increase in active inventory, coupled with the company&#8217;s steady sales despite price cuts, suggests a shift in consumer behavior and market conditions. 
This could potentially impact other homebuilders and the overall housing market in the future. As such, this development warrants close monitoring by investors and stakeholders in the real estate sector.
Read Next
<a href="https://www.benzinga.com/real-estate/24/09/41000406/five-emerging-tech-cities-where-home-values-are-surging-alongside-innovation" target="_blank" rel="noreferrer noopener">Five Emerging Tech Cities Where Home Values Are Surging Alongside Innovation</a>

This Homebuilder Is Slashing Prices In Key Cities Where Prices Soared The Most

The economy typically has three leading industries that investors can watch closely when trying to figure out the potential future of the stock market. Of course, consumer discretionary is a big part of this mix, as the United States economy is increasingly made up of consumer trends and debt. Following these consumer trends is the mortgage market, which is an extension of the real estate sector.
A third industry just as connected to the rest is the transportation sector, particularly the trucking industry, as it is called upon to deliver the products ordered based on higher consumer activity and demand.
Today, investors have a good idea of what the consumer sector is doing after consumer sentiment readings came in at their weakest since 2021, so now it is time to gauge the housing market.
This is where homebuilding stocks like KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>) become as important as ever, especially as the company just announced its latest set of quarterly earnings figures.
Investors can probably guess that the figures weren&#39;t that great based on the fact that the stock traded lower by 5.3% the day after announcing its quarterly earnings, but the implications for the rest of the stock market are just as important.
<h2>Why the Housing Industry Could Be in Trouble: KB Homes Stock Numbers Follow the Trend</h2>
Investors can gauge the market&#39;s feelings about a particular industry by comparing its average forward P/E valuations against the broader S&amp;P 500 index. In this case, those at Goldman Sachs believe the S&amp;P 500 will trade at about 18.0x forward P/E ratio for the next 12 months, the benchmark for investors to work with now.
On the other hand, the homebuilding industry trades at an average valuation of 11.5x forward P/E ratio. This is a discount of up to 36% from the market expectation, and typically, markets are willing to discount industries when they believe they are fundamentally set up to underperform the rest.
The underperformance may result from the average home price being up to 35% above what it was before the COVID-19 pandemic, pricing out many would-be homebuyers. The situation worsens when investors account for the current mortgage interest rates hovering near 6.5%.
The problem is that, despite recent interest rate cuts from the Federal Reserve (the Fed), most homes are still too expensive compared to the average salary today, so new demand won&#39;t come online for a while. Investors can see this trend reflected in the falling housing starts, home building permit numbers, and the mortgage market index hitting a 1996 low.
KB Home stock is not immune to this environment, so investors will notice a flat order backlog for the past 12 months in the company&#39;s earnings press release. In addition, the home-selling gross margin contracted down to 20.6% from 21.5% a year ago, signaling further weakness.
Speaking to demand and current sentiment for new homes, the overall cancellation rate came in at 15%, above the industry&#39;s 6% to 8% average, showing capitulation from the buyer side. The final blow came in the company&#39;s backlog, which totaled 5,724 this quarter compared to 7,008 one year ago.
This might have caused the stock&#39;s 5.3% down day despite reporting higher earnings per share (EPS) and revenue since these key performance indicators (KPIs) are ultimately more important for the future. However, KB Home is not alone in this trend; peers are suffering, too.
<h2>Wall Street Analysts Predict Downside for the Housing Industry</h2>
Here is what Wall Street analysts considered when deciding to keep their consensus price target for KB Home at $77.3 a share. This implies as much as a 6.6% downside from where the stock trades today despite the sell-off. Inside KB Home&#39;s financials, investors will notice that this shift in backlog inventory caused operating cash flows to crash.
Going from a net inflow of $608.7 million a year ago to $89.9 million this year means EPS is overstated today. Knowing that this is likely becoming an industry-wide issue, price targets on competitors like Toll Brothers Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tol#NYSE">TOL</a>) and D.R. Horton Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhi#NYSE">DHI</a>) have also started to come down.
For Toll Brothers, Wall Street analysts expect the stock to drop to $145 a share, or 3.5% below today&#39;s price. More than that, it looks like bears are starting to gear up to oppose this company and the negative trends affecting the industry today, as Toll Brothers stock&#39;s short interest increased by 7.9% in the past month alone.
Looking over at D.R. Horton, the story doesn&#39;t improve. Wall Street has landed on a consensus price target of $183.3 a share for this homebuilder, which implies a downside of 2% from today&#39;s price. Bearish traders also picked up the pace on this name by increasing the stock&#39;s short interest by 12.5% over the past month.
<h2>Shift to Defensive Stocks as Housing Sector Shows Weakness</h2>
Based on the evidence, it&#39;s clear the housing market faces significant headwinds, with rising interest rates and inflated home prices limiting demand. Homebuilding stocks like KB Home, Toll Brothers, and D.R. Horton are showing signs of struggle, as seen in their lower backlogs, declining margins, and increasing short interest.
For investors, this suggests it may be wise to avoid the housing sector for now and consider shifting toward more defensive, less cyclical industries that are better positioned to weather the current economic environment.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/kb-home-slips-after-earnings-whats-next-for-homebuilders/">KB Home Slips After Earnings: What&#39;s Next for Homebuilders?</a>&quot; first appeared on MarketBeat.

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KB Home Slips After Earnings: What's Next for Homebuilders?

KB Home's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) short percent of float has fallen 12.15% since its last report. The company recently reported that it has 6.17 million shares sold short, which is 13.02% of all regular shares that are available for trading. Based on its trading volume, it would take traders 6.58 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>KB Home Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727380824_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for KB Home has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing KB Home's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, KB Home's peer group average for short interest as a percentage of float is 5.39%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

(KBH) - Analyzing KB Home's Short Interest

KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) has outperformed the market over the past 10 years by 7.47% on an annualized basis producing an average annual return of 18.89%. Currently, KB Home has a market capitalization of $6.13 billion. 
Buying $1000 In KBH: If an investor had bought $1000 of KBH stock 10 years ago, it would be worth $5,587.68 today based on a price of $83.58 for KBH at the time of writing.
<h3>KB Home's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727361018_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 10 Years Ago, You Would Have $5,600 Today

Wedbush analyst Jay McCanless maintains KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) with a Neutral and raises the price target from $67 to $75.

Wedbush Maintains Neutral on KB Home, Raises Price Target to $75

Barclays analyst Matthew Bouley maintains KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) with a Overweight and raises the price target from $78 to $99.

Barclays Maintains Overweight on KB Home, Raises Price Target to $99

U.S. stock futures were mixed this morning, with the Dow futures gaining around 0.1% on Wednesday.
Shares of Stitch Fix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) fell sharply in today's pre-market trading after the company reported worse-than-expected <a href="https://www.benzinga.com/news/earnings/24/09/41014297/stitch-fix-stock-falls-after-q4-results-heres-why">fourth-quarter EPS results</a>.
Stitch Fix reported quarterly losses of 29 cents per share, which missed the analyst consensus estimate for losses of 19 cents. Quarterly revenue of $319.6 million beat the analyst consensus estimate of $318.5 million and is a 12.4% decrease year-over-year.
Stitch Fix shares dipped 25.6% to $2.79 in pre-market trading.
Here are some big stocks recording losses in today's pre-market trading session.
<ul>
<li>Target Hospitality Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TH#NASDAQ">TH</a>) shares dipped 17.9% to $7.75 in pre-market trading. Target Hospitality Announced that its board of directors has decided to disband the special committee, which was formed solely of independent directors.</li>
<li>GDS Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GDS#NASDAQ">GDS</a>) declined 7.5% to $19.91 in pre-market trading after gaining 5% on Tuesday.</li>
<li>KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) shares fell 7.1% to $81.19 in pre-market trading following third-quarter financial results.</li>
<li>Zai Lab Ltd – ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZLAB#NASDAQ">ZLAB</a>) shares declined 5.2% to $20.45 in pre-market trading.</li>
<li>Bilibili Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BILI#NASDAQ">BILI</a>) shares fell 4.8% to $17.73 in pre-market trading after surging 17% on Tuesday.</li>
<li>Wave Life Sciences Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WVE#NASDAQ">WVE</a>) shares slipped 4.8% to $7.80 in pre-market trading after the company announced a $175 million proposed public offering of ordinary shares and pre-funded warrants.</li>
<li>XPeng Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) shares declined 4.6% to $10.21 in pre-market trading after jumping 12% on Tuesday.</li>
<li>JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) shares fell 4% to $32.55 in pre-market trading after gaining 14% on Tuesday.</li>
</ul>
Now Read This: 
<ul>
<li><a href="https://www.benzinga.com/markets/24/09/41013033/top-4-industrials-stocks-which-could-rescue-your-portfolio-this-quarter">Top 4 Industrials Stocks Which Could Rescue Your Portfolio This Quarter</a></li>
</ul>

Pre-Market Outlook

Movers

BILI

SFIX

XPEV

ZLAB

Stitch Fix Reports Weak Earnings, Joins KB Home And Other Big Stocks Moving Lower In Wednesday's Pre-Market Session

WIIM

KB Home shares are trading lower following Q3 earnings. While EPS and revenues beat estimates, the company said net orders were flat with last year and it saw softening in late June through July.

KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) reported third-quarter financial results after the market close on Tuesday. Here&#8217;s a look at the <a href="https://www.benzinga.com/pressreleases/24/09/b41014090/kb-home-reports-2024-third-quarter-results">key metrics from the quarter</a>.
Q3 Earnings: KB Home reported third-quarter revenue of $1.75 billion, beating analyst <a href="https://www.benzinga.com/calendars/earnings">estimates</a> of $1.728 billion. The U.S. homebuilder&nbsp;reported third-quarter earnings of $2.04 per share, beating analyst estimates of $2.02 per share.
KB Home has topped analyst estimates for revenue and earnings in seven consecutive quarters, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.
Total revenue was up 10% year-over-year, while earnings grew 13%. KB Home delivered 3,631 homes in the quarter, up 8% year-over-year. Average selling price was&nbsp;$480,900, up 3%, but net orders were flat year-over-year and inventories jumped 10% to $5.65 billion.
&#8220;We experienced variability in demand across the quarter, with softening in late June through July, as buyers continued to evaluate elevated mortgage interest rates, and general economic concerns were rising. As rates moderated in August, our net orders improved,&#8221; said&nbsp;Jeffrey Mezger, chairman and CEO of KB Home.
&#8220;We are encouraged by this strengthening in demand for our affordably priced personalized homes, and the ongoing positive trend we are experiencing so far in our 2024&nbsp;fourth quarter.&#8221;
KB Home noted it repurchased $150 million worth of its common stock during the quarter. The company had $800 million remaining under its buyback program as of Aug. 31.
See Also: <a href="https://www.benzinga.com/real-estate/24/09/41000406/five-emerging-tech-cities-where-home-values-are-surging-alongside-innovation">Five Emerging Tech Cities Where Home Values Are Surging Alongside Innovation</a>
Outlook: KB Home expects full-year 2024 housing revenues in the range of $6.85 billion to $6.95 billion. Average selling prices for the full year are expected to be approximately $490,000.
Management will hold a conference call to discuss these results at 5 p.m. ET. The company noted that it will provide guidance for the fourth quarter on the call.
KBH Price Action: <a href="https://www.benzinga.com/quote/KBH" target="_blank" rel="noreferrer noopener">KB Home shares</a> were up nearly 40% year-to-date heading into the print. The homebuilder stock was down 6.10% in after-hours trading at $82.10 at the time of publication Tueday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.
Photo: Shutterstock.

Guidance

After-Hours Center

KB Home Q3 Earnings: Revenue Beat, EPS Beat, Net Orders Flat — 'Variability In Demand Across The Quarter'

KB Home Says 'Net orders were flat with the year ago quarter. We experienced variability in demand across the quarter, with softening in late June through July, as buyers continued to evaluate elevated mortgage interest rates, and general economic concerns were rising'

KB Home shares are trading lower following Q3 financial results.

KB Home Sees FY24 Housing Revenue $6.85B-$6.95B, Average Selling Price Around $490,000, Homebuilding Operating Income Margin Expected at 11.1%-11.2%

KB Home (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBH#NYSE">KBH</a>) reported quarterly earnings of $2.04 per share which beat the analyst consensus estimate of $2.02 by 0.99 percent. The company reported quarterly sales of $1.750 billion which beat the analyst consensus estimate of $1.728 billion by 1.29 percent. This is a 10.27 percent increase over sales of $1.587 billion the same period last year.

Earnings Beats

KB Home Q3 2024 GAAP EPS $2.04 Beats $2.02 Estimate, Sales $1.75B Beat $1.728B Estimate

If you&#39;re looking at this morning&#39;s pre-market indexes and experiencing deja vu, you&#39;re not the only one. Just as Monday morning we saw early trading in the red blossom into the green as the regular trading day started &mdash; on the way to new all-time closing highs on the Dow and S&amp;P 500 &mdash; we have done the same so far Tuesday: the Dow is +5 points, the S&amp;P +62 and the Nasdaq +36 points at this hour.
<h2>Case-Shiller Home Prices Increase, but Miss Estimates</h2>
The definitive measure on home prices is the Case-Shiller index, reported a month in arrears from most other housing data (in this case, July). Overall, we see +5% growth in home price data for mid-summer, but this is lower than the +6% analysts had been expecting, and below the downwardly revised +5.5% the previous month.
Breaking the findings down into the two separate indexes, the 10-city survey saw home prices up +6.8% for July, +5.9% on the 20-city. Among region leaders, New York led the way that month: +8.8%, followed by Las Vegas at +8.2%.
Of course, this data is still well within the high mortgage rate environment that we see coming down rather rapidly, looking ahead. With a lowering Fed funds rate, this will establish lower mortgage rates over time. Considering pent-up demand over the past couple years of high mortgage rates, we may also expect to see more activity in the Existing Home Sales space, which may put pressure on new homebuilders.
<h2>AutoZone Mixed on Q4 Report</h2>
Zacks Rank #4 (Sell)-rated AutoZone (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/azo#NYSE">AZO</a>) posted a substantial miss on its bottom line for fiscal Q4 earnings today, with a reported $48.11 per share short of the $53.31 expected, for a negative earnings surprise of -9.75%. Revenues, however, outperformed slightly, by +0.37% to $6.21 billion in the quarter (and a nice boost from the $5.69 billion posted a year ago).
AutoZone shares are trading down -3.7% on the news, crimping the company&#39;s gains of +17.9% year to date. Even still, the stock is underperforming the S&amp;P 500&#39;s strong growth of +19.9% so far this year.
<h2>What to Expect for Tuesday in the Stock Market</h2>
A half hour after the opening bell, Consumer Confidence for September will be released. Analysts expect a slight uptick to 104 from 103.3 reported a month ago. Especially now with a loosening Fed funds rate cycle underway, we may begin to see the clouds part before consumers surveyed here.
After the closing bell, two notable stocks will be reporting earnings: KB Home (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbh#NYSE">KBH</a>), the Los Angeles-based homebuilder which specializes in single-family homes first-time homebuyers, and Stitch Fix (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sfix#NASDAQ">SFIX</a>), a 21st century online custom apparel store.
KB Home is expected to have grown by +13.3% on earnings in Q3 and +8.8% on revenues, and is working on a six-straight string of quarterly earnings beats. Fiscal Q4 results for Stitch Fix are expected to be flat on earnings for the quarter, but -15.5% on revenues.
<a href="https://www.zacks.com/stock/news/2340641/case-shiller-home-prices-tick-in-lower-than-expectations?cid=CS-BENZ-FT-economic_highlights-2340641">To read this article on Zacks.com click here.</a>

Earnings Misses

Penny Stocks

Federal Reserve

Case-Shiller Home Prices Tick in Lower Than Expectations

KB Home declares $0.25 dividend

KB Home ( ($KBH) ) has provided an announcement. KB Home has welcomed Cheryl J. Henry to its board of directors, with her term concluding at the co...

KB Home Appoints Cheryl J. Henry to Board of Directors

KB Home ( ($KBH) ) has issued an announcement. KB Home's board has approved long-term incentive awards for its top executives, linking their potent...

KB Home Aligns Executive Rewards with Performance Metrics

Wells Fargo analyst Sam Reid maintained a Sell rating on KB Home (KBH – Research Report) today and set a price target of $83.00. The company's shar...

Wells Fargo Sticks to Its Sell Rating for KB Home (KBH)

KB Home: Steady Growth Amid Near-Term Uncertainty

Third Point Q3 2024 Investor Letter

Third Point takes new stake in DSV A/S in Q3, discusses Cinemark position - Q3 letter

Evercore ISI analyst Stephen Kim maintained a Buy rating on KB Home (KBH – Research Report) today and set a price target of $96.00. The company's s...

Evercore ISI Reaffirms Their Buy Rating on KB Home (KBH)

Housing Market Update - D.R. Horton Is Down 13%

Seaport Global analyst Kenneth Zener maintained a Sell rating on KB Home (KBH – Research Report) today and set a price target of $65.00. The compan...

KB Home (KBH) Receives a Sell from Seaport Global

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Press Releases

KB Home Chief Financial Officer to Retire in Early 2025

KB Home Declares Fourth Quarter 2024 Dividend

KB Home Announces the Grand Opening of Its Newest Community in Caldwell, Idaho

KB Home Elects Cheryl J. Henry to Its Board of Directors

KB Home Announces the Grand Opening of Its Newest Community in Desirable Poulsbo, Washington

KB Home Announces the Grand Opening of Its Newest Gated Community in Highly Desirable Oceanside, California

KB Home Wins 2024 WaterSense Sustained Excellence Award, the Only National Homebuilder to Receive This Prestigious Honor

KB Home Announces the Grand Opening of Its Newest Community in Leesburg, Florida

KB Home Announces the Grand Opening of Its Newest Community in Popular Auburn, Washington

KB Home Announces a Rare Opportunity to Own a New Home in a Prime Escondido, California Location

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