Hovnanian Enterprises Inc $HOV Shares Bought by Empowered Funds LLC

Key Points

• Empowered Funds LLC increased its Hovnanian Enterprises stake by 46.5% in the first quarter, holding 73,146 shares worth approximately $8.1 million. Institutional investors collectively own 65.4% of the company.
• Analysts maintain a cautious outlook, with a consensus rating of “Reduce” and a $97 price target. HOV opened at $123.65, down 4.4%, and remains well below its 52-week high of $162.05.
• Hovnanian beat quarterly expectations, reporting a loss of $0.46 per share versus the projected $2.04 loss and revenue of $667.65 million. Meanwhile, the CEO and a director sold shares, while insiders retain a 22.67% ownership stake.

Empowered Funds LLC grew its stake in Hovnanian Enterprises Inc (NYSE:HOV - Free Report) by 46.5% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 73,146 shares of the construction company's stock after buying an additional 23,234 shares during the period. Empowered Funds LLC owned 1.23% of Hovnanian Enterprises worth $8,113,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of the stock. Osaic Holdings Inc. lifted its position in Hovnanian Enterprises by 72.1% in the second quarter. Osaic Holdings Inc. now owns 432 shares of the construction company's stock valued at $45,000 after acquiring an additional 181 shares during the last quarter. Tower Research Capital LLC TRC lifted its holdings in shares of Hovnanian Enterprises by 614.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 557 shares of the construction company's stock valued at $58,000 after purchasing an additional 479 shares during the last quarter. State of Wyoming acquired a new stake in shares of Hovnanian Enterprises in the 1st quarter valued at about $62,000. International Assets Investment Management LLC acquired a new stake in shares of Hovnanian Enterprises in the 4th quarter valued at about $117,000. Finally, Harbor Capital Advisors Inc. grew its stake in Hovnanian Enterprises by 38.1% during the 4th quarter. Harbor Capital Advisors Inc. now owns 1,369 shares of the construction company's stock worth $134,000 after buying an additional 378 shares during the last quarter. 65.40% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have commented on HOV shares. Weiss Ratings raised Hovnanian Enterprises from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 16th. Citizens Jmp assumed coverage on Hovnanian Enterprises in a report on Thursday, April 9th. They issued a "market underperform" rating and a $74.00 price objective for the company. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Hovnanian Enterprises presently has a consensus rating of "Reduce" and a consensus price target of $97.00.

Hovnanian Enterprises Stock Down 4.4%

HOV opened at $123.65 on Friday. Hovnanian Enterprises Inc has a 52 week low of $91.52 and a 52 week high of $162.05. The business has a 50 day moving average price of $125.60 and a two-hundred day moving average price of $118.59. The company has a quick ratio of 0.40, a current ratio of 1.50 and a debt-to-equity ratio of 0.05. The company has a market cap of $724.57 million, a PE ratio of 33.97 and a beta of 1.81.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last announced its earnings results on Thursday, May 21st. The construction company reported ($0.46) earnings per share for the quarter, beating the consensus estimate of ($2.04) by $1.58. Hovnanian Enterprises had a return on equity of 11.23% and a net margin of 1.25%.The company had revenue of $667.65 million for the quarter, compared to the consensus estimate of $626.40 million.

Insiders Place Their Bets

In related news, CEO Ara K. Hovnanian sold 12,880 shares of Hovnanian Enterprises stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $125.78, for a total value of $1,620,046.40. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director J Larry Sorsby sold 1,032 shares of the business's stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $142.57, for a total transaction of $147,132.24. Following the completion of the transaction, the director directly owned 187,416 shares in the company, valued at $26,719,899.12. This represents a 0.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 22.67% of the company's stock.

Hovnanian Enterprises 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.

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