Hovnanian Enterprises (NYSE:HOV) Announces Earnings Results

Key Points

• Hovnanian Enterprises reported a quarterly loss of $0.70 per share, missing the consensus estimate of a $0.56 loss and declining from $1.99 EPS in the same quarter last year.
• The stock fell 12.1% to $112.19 following the results, while analysts maintained a cautious outlook with a consensus “Reduce” rating and a $97 price target.
• Company insiders, including CEO Ara K. Hovnanian and Director J. Larry Sorsby, recently sold shares; insiders own 22.67% of the company, while institutional investors hold 65.40%.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) posted its quarterly earnings results on Thursday. The construction company reported ($0.70) EPS for the quarter, missing the consensus estimate of ($0.56) by ($0.14), RTT News reports. Hovnanian Enterprises had a net margin of 1.25% and a return on equity of 11.23%. During the same quarter last year, the business earned $1.99 earnings per share.

Hovnanian Enterprises Stock Down 12.1%

Hovnanian Enterprises stock traded down $15.48 during mid-day trading on Thursday, reaching $112.19. The stock had a trading volume of 31,088 shares, compared to its average volume of 117,094. Hovnanian Enterprises has a fifty-two week low of $91.52 and a fifty-two week high of $162.05. The firm has a market capitalization of $657.43 million, a PE ratio of 30.69 and a beta of 1.83. The stock's 50-day simple moving average is $131.40 and its 200-day simple moving average is $119.79. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.40 and a current ratio of 1.50.

Wall Street Analyst Weigh In

Separately, Weiss Ratings raised Hovnanian Enterprises from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, July 16th. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Hovnanian Enterprises has a consensus rating of "Reduce" and a consensus price target of $97.00.

Insider Buying and Selling at Hovnanian Enterprises

In other news, CEO Ara K. Hovnanian sold 12,880 shares of Hovnanian Enterprises stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $125.78, for a total transaction of $1,620,046.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director J Larry Sorsby sold 1,032 shares of Hovnanian Enterprises stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $142.57, for a total transaction of $147,132.24. Following the completion of the sale, the director directly owned 187,416 shares of the company's stock, valued at approximately $26,719,899.12. This trade represents a 0.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 22.67% of the company's stock.

Institutional Trading of Hovnanian Enterprises

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Intech Investment Management LLC boosted its position in Hovnanian Enterprises by 6.5% during the fourth quarter. Intech Investment Management LLC now owns 2,340 shares of the construction company's stock valued at $228,000 after purchasing an additional 142 shares in the last quarter. JPMorgan Chase & Co. grew its stake in Hovnanian Enterprises by 1.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 9,283 shares of the construction company's stock valued at $1,193,000 after acquiring an additional 144 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Hovnanian Enterprises by 5.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,979 shares of the construction company's stock valued at $312,000 after purchasing an additional 156 shares during the period. Deutsche Bank AG boosted its position in shares of Hovnanian Enterprises by 4.1% during the 4th quarter. Deutsche Bank AG now owns 4,134 shares of the construction company's stock worth $403,000 after purchasing an additional 163 shares during the period. Finally, Franklin Resources Inc. increased its stake in Hovnanian Enterprises by 1.9% during the third quarter. Franklin Resources Inc. now owns 9,547 shares of the construction company's stock worth $1,227,000 after purchasing an additional 179 shares during the period. 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.

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