Hovnanian Enterprises Inc (NYSE:HOV) Short Interest Up 27.9% in July

Key Points

• Hovnanian Enterprises Inc saw its short interest rise by 27.9% in July, with a total of 363,700 shares sold short, representing 8.3% of its shares.
• Wall Street analysts have a mixed outlook on the stock, with one maintaining a "neutral" rating and a target price of $120.00, while another has downgraded it to a "sell" rating.
• Insider transactions included Director Edward A. Kangas selling 5,500 shares at an average price of $107.12, reducing his ownership by over 50%.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) was the target of a significant increase in short interest in the month of July. As of July 31st, there was short interest totaling 363,700 shares, anincreaseof27.9% from the July 15th total of 284,400 shares. Currently,8.3% of the shares of the stock are sold short. Based on an average trading volume of 156,100 shares, the days-to-cover ratio is currently 2.3 days. Based on an average trading volume of 156,100 shares, the days-to-cover ratio is currently 2.3 days. Currently,8.3% of the shares of the stock are sold short.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Wall Street Zen cut shares of Hovnanian Enterprises from a "hold" rating to a "sell" rating in a research note on Wednesday, May 21st. Wedbush reissued a "neutral" rating and issued a $120.00 target price on shares of Hovnanian Enterprises in a research note on Monday. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Hovnanian Enterprises currently has a consensus rating of "Reduce" and a consensus price target of $120.00.

Insiders Place Their Bets

In related news, Director Edward A. Kangas sold 5,500 shares of the company's stock in a transaction dated Monday, June 30th. The shares were sold at an average price of $107.12, for a total value of $589,160.00. Following the sale, the director owned 5,338 shares of the company's stock, valued at $571,806.56. The trade was a 50.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 19.77% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Hovnanian Enterprises

A number of large investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Hovnanian Enterprises by 4.3% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,823 shares of the construction company's stock worth $378,000 after purchasing an additional 117 shares in the last quarter. California State Teachers Retirement System lifted its position in shares of Hovnanian Enterprises by 4.0% during the fourth quarter. California State Teachers Retirement System now owns 4,724 shares of the construction company's stock worth $632,000 after purchasing an additional 182 shares in the last quarter. Exchange Traded Concepts LLC lifted its position in shares of Hovnanian Enterprises by 10.1% during the first quarter. Exchange Traded Concepts LLC now owns 2,350 shares of the construction company's stock worth $246,000 after purchasing an additional 215 shares in the last quarter. Harbor Capital Advisors Inc. lifted its position in shares of Hovnanian Enterprises by 23.7% during the second quarter. Harbor Capital Advisors Inc. now owns 1,259 shares of the construction company's stock worth $132,000 after purchasing an additional 241 shares in the last quarter. Finally, Legal & General Group Plc lifted its position in shares of Hovnanian Enterprises by 5.5% during the fourth quarter. Legal & General Group Plc now owns 5,045 shares of the construction company's stock worth $675,000 after purchasing an additional 265 shares in the last quarter. 65.40% of the stock is currently owned by institutional investors and hedge funds.

Hovnanian Enterprises Price Performance

Shares of Hovnanian Enterprises stock opened at $148.1140 on Thursday. The company has a current ratio of 1.58, a quick ratio of 0.28 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $877.58 million, a price-to-earnings ratio of 5.19 and a beta of 2.19. Hovnanian Enterprises has a 1-year low of $81.15 and a 1-year high of $240.34. The firm's 50-day moving average price is $119.06 and its two-hundred day moving average price is $109.78.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last issued its quarterly earnings data on Tuesday, May 20th. The construction company reported $2.43 earnings per share for the quarter, missing the consensus estimate of $2.45 by ($0.02). The firm had revenue of $686.47 million for the quarter, compared to the consensus estimate of $733.20 million. Hovnanian Enterprises had a return on equity of 33.18% and a net margin of 7.03%.The firm's revenue for the quarter was down 3.1% compared to the same quarter last year.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc, through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas.

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