KB Home (NYSE:KBH) shares are down 7.9% to trade at $57.81, despite the homebuilder delivering better-than-expected fiscal fourth-quarter earnings and revenue after yesterday's close. The pullback comes as the company continues to face challenging housing market conditions and delivered fewer homes throughout 2025.
For the quarter, profits came in at $1.55, topping estimates of $1.92, while revenue of $1.69 billion also exceeded expectations of $1.65 billion. Shares are today gapping below familiar support at the 160-day moving average, which stopped losses in October and November. The security has also struggled with overhead pressure at the $67.50 level since pulling back from a rally to their highest level since late January. So far in 2025, KBH has shed over 10%.
Bearish options activity has been picking up, with KBH sporting a 10-day put/call volume ratio of 1.86 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 84th percentile of its annual range.
So far today, 2,433 puts have changed hands -- 16 times the intraday average volume and more than double the amount of calls placed. Currently, the most popular contract is the December 60-strike put.
