Hovnanian Enterprises (NYSE:HOV) Shares Down 6.1% - Here's Why

Key Points

• Shares fell 6.1% midday to about $106, trading as low as $106.78 on Tuesday with volume roughly 33% below its average and a prior close of $112.91.
• Big quarterly beat: Hovnanian reported EPS of $2.62 (versus a -$0.98 consensus) and revenue of $631.95M (vs. $628.50M est.), while net margin was 1.92% and ROE 14.14%.
• Analyst view: Hold — three analysts rate the stock a Hold with a consensus price target of $120, above the current trading level.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report)'s share price dropped 6.1% during mid-day trading on Tuesday . The company traded as low as $106.78 and last traded at $106.01. Approximately 69,501 shares traded hands during trading, a decline of 33% from the average daily volume of 103,849 shares. The stock had previously closed at $112.91.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on HOV shares. Weiss Ratings reiterated a "hold (c)" rating on shares of Hovnanian Enterprises in a research report on Thursday, January 22nd. Wall Street Zen upgraded shares of Hovnanian Enterprises from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat, Hovnanian Enterprises has a consensus rating of "Hold" and an average price target of $120.00.

Hovnanian Enterprises Stock Down 5.8%

The firm has a market capitalization of $631.71 million, a price-to-earnings ratio of 16.31 and a beta of 2.08. The business's 50-day moving average is $116.80 and its two-hundred day moving average is $117.98. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.43 and a current ratio of 1.50.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last announced its quarterly earnings results on Wednesday, February 25th. The construction company reported $2.62 earnings per share for the quarter, beating analysts' consensus estimates of ($0.98) by $3.60. The business had revenue of $631.95 million for the quarter, compared to the consensus estimate of $628.50 million. Hovnanian Enterprises had a net margin of 1.92% and a return on equity of 14.14%.

Institutional Trading of Hovnanian Enterprises

Several hedge funds have recently bought and sold shares of HOV. State of Alaska Department of Revenue acquired a new stake in Hovnanian Enterprises during the 3rd quarter worth approximately $35,000. Osaic Holdings Inc. raised its holdings in Hovnanian Enterprises by 72.1% during the 2nd quarter. Osaic Holdings Inc. now owns 432 shares of the construction company's stock worth $45,000 after buying an additional 181 shares during the period. Tower Research Capital LLC TRC raised its holdings in Hovnanian Enterprises by 614.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 557 shares of the construction company's stock worth $58,000 after buying an additional 479 shares during the period. International Assets Investment Management LLC bought a new stake in shares of Hovnanian Enterprises in the fourth quarter valued at about $117,000. Finally, Harbor Capital Advisors Inc. lifted its holdings in shares of Hovnanian Enterprises by 38.1% in the fourth quarter. Harbor Capital Advisors Inc. now owns 1,369 shares of the construction company's stock valued at $134,000 after purchasing an additional 378 shares in the last quarter. 65.40% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.