Breaking: KB Home (NYSE: KBH) On The Verge of a Selling SpreeShares of KB Home (NYSE: NYSE:KBH ) saw a 7% downtick early morning in Tuesday's premarket session breaking below the psychological support point of $60 enroute towards a selling spree.
Operating as a homebuilding company in the United States, the company operates through four segments: West Coast, Southwest, Central, and Southeast. It builds and sells a variety of homes, including attached and detached single-family residential homes, townhomes, and condominiums primarily for first-time, first move-up, second move-up, and active adult homebuyers.
Yesterday after market close KB Home report earnings results, posting lower profit and revenue in its fiscal first quarter, hurt by softer-than-expected demand.
KB Home shares have declined 10% over the past year due to affordability pressures and elevated interest rates, with Q1 results showing significant demand slowdown.
The company reported weak Q1 financials, with earnings and revenue misses, a 9% drop in deliveries, and a 17% fall in net orders.
Elevated interest rates and increased supply have pressured margins and demand, particularly affecting first-time buyers, leading to reduced revenue guidance and operating margin
Financial Performance
In 2024, KB Home's revenue was $6.93 billion, an increase of 8.10% compared to the previous year's $6.41 billion. Earnings were $650.19 million, an increase of 10.97%.
Technical Outlook
As of the time of writing, shares of NYSE:KBH are down 7.20% on Tuesday's premarket trading with the asset facing selling pressure, should the RSI which is currently at 48 dip to 40, a bearish campaign would be inevitable- similarly, a move above the $72 pivot could change the course for NYSE:KBH shares.
Analyst Forecast
According to 13 analysts, the average rating for KBH stock is "Hold." The 12-month stock price forecast is $75.5, which is an increase of 22.19% from the latest price.
