Hovnanian Enterprises (NYSE:HOV) Cut to Sell at Wall Street Zen

Key Points

• Hovnanian Enterprises has been downgraded by Wall Street Zen from a "hold" to a "sell" rating, reflecting a negative shift in market sentiment.
• The company reported $1.99 earnings per share for the last quarter, missing consensus estimates significantly, and had a revenue of $800.58 million, also below expectations.
• Institutional investors hold 65.40% of Hovnanian's stock, indicating significant interest from larger investment firms despite the recent downgrade.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Separately, Wedbush reissued a "neutral" rating and issued a $120.00 price objective on shares of Hovnanian Enterprises in a research report on Wednesday, August 27th. One investment 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, the company currently has an average rating of "Reduce" and a consensus target price of $120.00.

Hovnanian Enterprises Price Performance

HOV stock traded up $10.31 during midday trading on Friday, reaching $149.31. The company had a trading volume of 125,573 shares, compared to its average volume of 109,062. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.62 and a quick ratio of 0.28. The company has a market capitalization of $883.92 million, a price-to-earnings ratio of 7.18 and a beta of 2.12. The stock has a 50 day moving average price of $128.43 and a 200-day moving average price of $110.42. Hovnanian Enterprises has a 1-year low of $81.15 and a 1-year high of $233.15.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last issued its earnings results on Thursday, August 21st. The construction company reported $1.99 EPS for the quarter, missing the consensus estimate of $3.51 by ($1.52). Hovnanian Enterprises had a return on equity of 23.31% and a net margin of 5.06%.The business had revenue of $800.58 million for the quarter, compared to analyst estimates of $806.20 million. During the same period in the previous year, the firm posted $9.75 EPS. The firm's revenue was up 10.8% compared to the same quarter last year. Hovnanian Enterprises has set its Q4 2025 guidance at EPS.

Insider Activity at Hovnanian Enterprises

In related news, Director Edward A. Kangas sold 5,500 shares of Hovnanian Enterprises stock in a transaction on 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 in the company, 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 at this link. Also, CEO Ara K. Hovnanian sold 609 shares of the stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $138.31, for a total value of $84,230.79. Following the completion of the transaction, the chief executive officer directly owned 62,896 shares of the company's stock, valued at $8,699,145.76. This represents a 0.96% decrease in their position. The disclosure for this sale can be found here. Insiders own 19.77% of the company's stock.

Institutional Investors Weigh In On Hovnanian Enterprises

A number of institutional investors have recently made changes to their positions in HOV. Farther Finance Advisors LLC raised its stake in Hovnanian Enterprises by 46.5% during the 1st quarter. Farther Finance Advisors LLC now owns 2,913 shares of the construction company's stock valued at $305,000 after buying an additional 925 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Hovnanian Enterprises by 64.7% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 9,905 shares of the construction company's stock valued at $1,325,000 after purchasing an additional 3,891 shares during the period. Exchange Traded Concepts LLC grew its stake in Hovnanian Enterprises by 10.1% during the first quarter. Exchange Traded Concepts LLC now owns 2,350 shares of the construction company's stock valued at $246,000 after acquiring an additional 215 shares in the last quarter. Kazazian Asset Management LLC purchased a new position in Hovnanian Enterprises during the 1st quarter valued at approximately $377,000. Finally, New York State Common Retirement Fund raised its holdings in shares of Hovnanian Enterprises by 18.2% in the first quarter. New York State Common Retirement Fund now owns 5,841 shares of the construction company's stock valued at $612,000 after acquiring an additional 900 shares in the last quarter. Hedge funds and other institutional investors own 65.40% of the company's stock.

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.