KB Home (KBH): What’s the Story?

KB Home (KBH) is an interesting player in the Industrial Goods space, with a focus on Residential Construction. The stock has been active on the tape, currently trading at $31.95, down from yesterday’s close by -0.93%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

KB Home (KBH) currently trades with a market capitalization of $2.79 Billion. That value represents a market adjusting for revenues that have been growing by 25.26 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $393.95 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.77 on a per share basis this quarter. Perhaps, that suggests something about why 2.90% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, KB Home recorded a 52-week high of $32.35. It is now trading 0.4% off that level. The stock is trading $29.36 its 50-day moving average by -2.59%. The stock carved out a 52-week low down at $15.51.

In recent action, KB Home (KBH) has made a move of +1.88% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 16.85% with $75.25 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of KBH.

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