KB Home's stock fell the most in six months after the home builder reported order growth that analysts said was less than that of the company's competitors.
The stock fell $1.06, or 6.4%, to close at $15.60 on Thursday. During the day it fell as much as 7.3%, the biggest decline in intraday trading for the shares since June 11.
KB Home's "order trends were disappointing," Vincent Foley, a credit analyst with Barclays, said in a note to investors.
The Los Angeles builder said its net orders rose 4.2% in its fiscal fourth quarter ended Nov. 30 from a year earlier, to 1,557 homes. KB Home's orders per average community rose 11% in the 2012 fiscal year, less than the average of about 30% among other builders, according to Adam Rudiger, an analyst with Wells Fargo & Co.
"We believe the company will need to aggressively open communities early in 2013 in order to generate order growth in line with peers," Rudiger wrote in a note to investors. He has a market perform rating on KB Home, the equivalent of a hold.