Put Contract Analysis: The $60.00 put contract for KB Home has a bid of $2.05, allowing investors to buy shares at a cost basis of $57.95, which is a 7% discount from the current price of $64.59. There is a 71% chance the contract may expire worthless, offering a potential 3.42% return on cash commitment.
Call Contract Overview: The $65.00 call contract has a bid of $4.10, providing a total return of 6.98% if the stock is called away at expiration. There is a 46% chance this contract may also expire worthless, allowing investors to keep both their shares and the premium, which could yield a 6.35% additional return.
Volatility Insights: The implied volatility for the put contract is 41% and for the call contract is 40%, while the actual trailing twelve-month volatility is calculated at 36%.
YieldBoost Concept: The article discusses the concept of YieldBoost, highlighting potential returns from both put and call contracts, and encourages investors to track these options on Stock Options Channel for further insights.
KBH
$63.91+Infinity%1D
Analyst Views on KBH
Wall Street analysts forecast KBH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KBH is 64.63 USD with a low forecast of 49.00 USD and a high forecast of 83.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
Wall Street analysts forecast KBH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KBH is 64.63 USD with a low forecast of 49.00 USD and a high forecast of 83.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
7 Hold
1 Sell
Hold
Current: 65.000
Low
49.00
Averages
64.63
High
83.00
Current: 65.000
Low
49.00
Averages
64.63
High
83.00
Barclays
Equal Weight -> Overweight
upgrade
$49 -> $71
2025-12-08
Reason
Barclays
Price Target
$49 -> $71
2025-12-08
upgrade
Equal Weight -> Overweight
Reason
Barclays upgraded KB Home to Overweight from Equal Weight with a price target of $71, up from $49. The firm adjusted ratings in the homebuilding and building products group as part of its 2026 outlook. Barclays expects another year of declines in single-family housing starts, saying the housing market "remains far from balanced." This leaves the homebuilder stocks "volatile, with no cycle call to be made," the analyst tells investors in a research note. Barclays believes building products and brokerage names can outperform despite weakness in new residential. It views building products and distributors as more compelling than homebuilders entering 2026.
JPMorgan
Neutral
maintain
$67 -> $71
2025-12-04
Reason
JPMorgan
Price Target
$67 -> $71
2025-12-04
maintain
Neutral
Reason
JPMorgan raised the firm's price target on KB Home to $71 from $67 and keeps a Neutral rating on the shares. The firm maintains a cautious stance on the homebuilders sector for 2026. JPMorgan expects an unfavorable demand/supply backdrop to bring additional pressure and downside risk for builder fundamentals. Builder fundamentals are likely to remain "relatively weak" in 2026, with persisting downside risk to estimates due to a still challenged demand/supply industry backdrop, the analyst tells investors in a research note.
RBC Capital
Sector Perform
maintain
$58 -> $59
2025-09-25
Reason
RBC Capital
Price Target
$58 -> $59
2025-09-25
maintain
Sector Perform
Reason
RBC Capital raised the firm's price target on KB Home to $59 from $58 but keeps a Sector Perform rating on the shares after its Q3 earnings beat. The firm's FY26E EPS estimates rise 3% despite lower order and homebuilding revenue estimates as aggressive fixed cost take-out and buybacks provide an offset, the analyst tells investors in a research note. The firm adds however that near term challenges remain for KB Home amid "tepid demand".
UBS
Buy
maintain
$80 -> $83
2025-09-25
Reason
UBS
Price Target
$80 -> $83
2025-09-25
maintain
Buy
Reason
UBS raised the firm's price target on KB Home to $83 from $80 and keeps a Buy rating on the shares. The company's fiscal Q3 report bought further evidence of a bottom forming, the analyst tells investors in a research note.
About KBH
KB Home is a homebuilding company, which builds a variety of new homes, including attached and detached single-family residential homes, townhomes and condominiums, designed primarily for first-time and first move-up, as well as second move-up and active adult homebuyers. It offers homes in development communities, in urban in-fill locations and as part of mixed-use projects. The Company's segments include homebuilding and financial services. The homebuilding segment is engaged in the acquisition and development of land primarily for residential purposes. The financial services segment offers various insurance products to its homebuyers in the markets where the Company builds homes and provides title services in certain of those markets. Its financial services also provide mortgage banking services, including residential consumer mortgage loan originations, to its homebuyers indirectly through KBHS Home Loans, LLC, an unconsolidated joint venture between the Company and a third party.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
