Citizens Jmp Initiates Coverage on Hovnanian Enterprises (NYSE:HOV)

Key Points

• Citizens Jmp initiated coverage on Hovnanian with an "underperform" rating and a $74.00 price target, implying about a 34.5% downside from the prior close.
• Hovnanian posted a strong quarter, reporting EPS of $2.62 versus consensus of (‑$0.98) and revenue of $631.95M (vs. $628.5M est.), signaling a sizable earnings beat.
• The stock traded around $112.95 (up ~6.3%), has a market cap of ~$671M and a P/E of 17.3; analysts' consensus is a "Reduce" rating with an average target of $97, while institutions own ~65.4% of the shares and several large funds recently increased stakes.

Investment analysts at Citizens Jmp began coverage on shares of Hovnanian Enterprises (NYSE:HOV - Get Free Report) in a research report issued on Thursday. The firm set an "underperform" rating and a $74.00 price target on the construction company's stock. Citizens Jmp's price target points to a potential downside of 34.48% from the company's previous close.

A number of other research analysts have also weighed in on the company. Wall Street Zen upgraded Hovnanian Enterprises from a "sell" rating to a "hold" rating in a report on Saturday, February 28th. Weiss Ratings reiterated a "hold (c)" rating on shares of Hovnanian Enterprises in a report on Thursday, January 22nd. Three equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $97.00.

Hovnanian Enterprises Stock Up 6.3%

Shares of NYSE HOV opened at $112.95 on Thursday. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.50 and a quick ratio of 0.43. The company has a 50-day moving average price of $116.69 and a 200-day moving average price of $117.68. The stock has a market capitalization of $670.91 million, a P/E ratio of 17.30 and a beta of 2.08. Hovnanian Enterprises has a 1 year low of $81.15 and a 1 year high of $162.05.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last posted its earnings results on Wednesday, February 25th. The construction company reported $2.62 earnings per share for the quarter, topping analysts' consensus estimates of ($0.98) by $3.60. The company had revenue of $631.95 million for the quarter, compared to analyst estimates of $628.50 million. Hovnanian Enterprises had a net margin of 1.92% and a return on equity of 14.14%.

Institutional Investors Weigh In On Hovnanian Enterprises

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allianz Asset Management GmbH boosted its position in Hovnanian Enterprises by 82.6% in the third quarter. Allianz Asset Management GmbH now owns 10,844 shares of the construction company's stock worth $1,393,000 after purchasing an additional 4,906 shares during the last quarter. Teacher Retirement System of Texas increased its position in shares of Hovnanian Enterprises by 292.2% during the 3rd quarter. Teacher Retirement System of Texas now owns 59,080 shares of the construction company's stock valued at $7,591,000 after purchasing an additional 44,017 shares during the last quarter. Pacer Advisors Inc. bought a new stake in shares of Hovnanian Enterprises during the 3rd quarter worth $4,460,000. Cadent Capital Advisors LLC bought a new stake in shares of Hovnanian Enterprises during the 3rd quarter worth $1,145,000. Finally, Penn Capital Management Company LLC purchased a new position in shares of Hovnanian Enterprises in the 3rd quarter worth about $683,000. Hedge funds and other institutional investors own 65.40% of the company's stock.

Hovnanian Enterprises Company Profile

Hovnanian Enterprises, Inc is a publicly traded homebuilding company primarily engaged in the acquisition, development and construction of residential properties. Headquartered in Red Bank, New Jersey, the company operates through a network of regional homebuilding divisions that design and deliver a range of housing solutions, including single-family detached homes, townhomes and condominiums. Hovnanian combines land development, architectural design and construction services with in-house mortgage and insurance offerings to provide a comprehensive homebuying experience.

The company markets its communities under several branded product lines tailored to different buyer segments and price points.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.