Hovnanian Enterprises' (HOV) Neutral Rating Reiterated at Wedbush

Key Points

• Hovnanian Enterprises has received a "neutral" rating from Wedbush, with a price target of $120.00 indicating a potential downside of 14.78% from its current stock price.
• Wall Street Zen downgraded Hovnanian's stock from a "hold" to a "sell" rating, leading to a consensus rating of "Reduce" across analysts.
• The company reported a miss in quarterly earnings, with earnings per share of $1.99 against an estimate of $3.51, despite a year-over-year revenue increase of 10.8%.

Wedbush restated their neutral rating on shares of Hovnanian Enterprises (NYSE:HOV - Free Report) in a report released on Wednesday morning, MarketBeat.com reports. Wedbush currently has a $120.00 target price on the construction company's stock. Wedbush also issued estimates for Hovnanian Enterprises' Q1 2026 earnings at ($0.98) EPS, Q2 2026 earnings at ($0.29) EPS, Q3 2026 earnings at $0.27 EPS and Q4 2026 earnings at $1.16 EPS.

Separately, Wall Street Zen lowered Hovnanian Enterprises from a "hold" rating to a "sell" rating in a report on Wednesday, May 21st. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus target price of $120.00.

Hovnanian Enterprises Stock Up 0.7%

Shares of Hovnanian Enterprises stock traded up $0.97 during trading on Wednesday, hitting $140.24. 76,232 shares of the stock traded hands, compared to its average volume of 119,539. The stock has a market cap of $830.19 million, a P/E ratio of 6.75 and a beta of 2.12. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.28 and a current ratio of 1.58. Hovnanian Enterprises has a twelve month low of $81.15 and a twelve month high of $233.15. The company has a fifty day moving average price of $125.39 and a two-hundred day moving average price of $109.91.

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

Insider Buying and Selling

In related news, CEO Ara K. Hovnanian sold 609 shares of the firm's stock in a transaction 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 trade represents a 0.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Edward A. Kangas sold 5,500 shares of the firm's stock in a transaction on Monday, June 30th. The stock was sold at an average price of $107.12, for a total value of $589,160.00. Following the completion of the transaction, the director directly owned 5,338 shares of the company's stock, valued at approximately $571,806.56. This trade represents a 50.75% decrease in their ownership of the stock. The disclosure for this sale can be found here. 19.77% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of HOV. Tower Research Capital LLC TRC increased its stake in shares of Hovnanian Enterprises by 614.1% in the second quarter. Tower Research Capital LLC TRC now owns 557 shares of the construction company's stock valued at $58,000 after buying an additional 479 shares in the last quarter. Creative Financial Designs Inc. ADV acquired a new stake in shares of Hovnanian Enterprises in the first quarter valued at $80,000. GAMMA Investing LLC increased its stake in shares of Hovnanian Enterprises by 553.9% in the second quarter. GAMMA Investing LLC now owns 994 shares of the construction company's stock valued at $104,000 after buying an additional 842 shares in the last quarter. Harbor Capital Advisors Inc. increased its stake in shares of Hovnanian Enterprises by 1,655.2% in the first quarter. Harbor Capital Advisors Inc. now owns 1,018 shares of the construction company's stock valued at $107,000 after buying an additional 960 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in shares of Hovnanian Enterprises in the first quarter valued at $109,000. 65.40% of the stock is currently owned by institutional investors and hedge funds.

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.