Hovnanian Enterprises (NYSE:HOV) Downgraded by Wall Street Zen to "Sell"

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 research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Separately, Wedbush reaffirmed a "neutral" rating and issued a $120.00 price objective on shares of Hovnanian Enterprises in a report on Wednesday, August 27th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $120.00.

Hovnanian Enterprises Stock Performance

HOV traded up $0.97 on Friday, hitting $140.24. 76,232 shares of the company's stock were exchanged, compared to its average volume of 119,539. The firm has a market cap of $830.19 million, a PE ratio of 6.75 and a beta of 2.12. Hovnanian Enterprises has a twelve month low of $81.15 and a twelve month high of $233.15. The stock has a fifty day moving average of $126.12 and a two-hundred day moving average of $109.94. The company has a current ratio of 1.58, a quick ratio of 0.28 and a debt-to-equity ratio of 0.11.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last released its quarterly earnings data on Thursday, August 21st. The construction company reported $1.99 earnings per share for the quarter, missing analysts' consensus estimates of $3.51 by ($1.52). Hovnanian Enterprises had a return on equity of 23.52% and a net margin of 5.06%.The firm had revenue of $800.58 million during the quarter, compared to analyst estimates of $806.20 million. During the same period last year, the business earned $9.75 EPS. The firm's revenue was up 10.8% on a year-over-year basis. Hovnanian Enterprises has set its Q4 2025 guidance at EPS.

Insider Transactions at Hovnanian Enterprises

In other Hovnanian Enterprises news, Director Edward A. Kangas sold 5,500 shares of the firm's stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $107.12, for a total transaction of $589,160.00. Following the completion of the sale, the director directly owned 5,338 shares in the company, valued at approximately $571,806.56. This trade represents a 50.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Ara K. Hovnanian sold 609 shares of the firm's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $138.31, for a total value of $84,230.79. Following the sale, the chief executive officer owned 62,896 shares of the company's stock, valued at $8,699,145.76. The trade was a 0.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 19.77% of the company's stock.

Institutional Trading of Hovnanian Enterprises

A number of institutional investors have recently bought and sold shares of HOV. Forager Capital Management LLC raised its stake in shares of Hovnanian Enterprises by 61.6% during the 4th quarter. Forager Capital Management LLC now owns 189,068 shares of the construction company's stock worth $25,301,000 after purchasing an additional 72,068 shares in the last quarter. Cubist Systematic Strategies LLC raised its stake in shares of Hovnanian Enterprises by 3,566.3% during the 4th quarter. Cubist Systematic Strategies LLC now owns 21,741 shares of the construction company's stock worth $2,909,000 after purchasing an additional 21,148 shares in the last quarter. First Trust Advisors LP purchased a new stake in shares of Hovnanian Enterprises during the 4th quarter worth about $2,772,000. GAMMA Investing LLC raised its stake in shares of Hovnanian Enterprises by 12,432.3% during the 1st quarter. GAMMA Investing LLC now owns 15,916 shares of the construction company's stock worth $16,670,000 after purchasing an additional 15,789 shares in the last quarter. Finally, Nuveen LLC purchased a new stake in shares of Hovnanian Enterprises during the 1st quarter worth about $1,605,000. Institutional investors and hedge funds 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.