Hovnanian Enterprises (NYSE:HOV) Shares Pass Above 200-Day Moving Average - Time to Sell?

Key Points

• Hovnanian Enterprises shares moved above their 200-day moving average, trading as high as $138.04 before last changing hands at $131.40.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a consensus target price of $97.00, with one firm assigning a $74 target.
• The company recently beat earnings expectations, reporting a smaller-than-expected loss and higher revenue than forecast, even as insiders sold shares in recent transactions.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $116.53 and traded as high as $138.04. Hovnanian Enterprises shares last traded at $131.4020, with a volume of 159,373 shares traded.

Analyst Upgrades and Downgrades

HOV has been the subject of a number of research analyst reports. Citizens Jmp assumed coverage on shares of Hovnanian Enterprises in a research report on Thursday, April 9th. They set a "market underperform" rating and a $74.00 target price for the company. Weiss Ratings raised shares of Hovnanian Enterprises from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday. Three research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Hovnanian Enterprises has an average rating of "Reduce" and a consensus target price of $97.00.

Hovnanian Enterprises Stock Performance

The stock has a 50 day simple moving average of $119.86 and a 200 day simple moving average of $116.53. The company has a market cap of $770.02 million, a price-to-earnings ratio of 36.10 and a beta of 1.81. The company has a quick ratio of 0.40, a current ratio of 1.50 and a debt-to-equity ratio of 0.05.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last issued its earnings results on Thursday, May 21st. The construction company reported ($0.46) earnings per share for the quarter, topping the consensus estimate of ($2.04) by $1.58. The company had revenue of $667.65 million during the quarter, compared to the consensus estimate of $626.40 million. Hovnanian Enterprises had a return on equity of 11.23% and a net margin of 1.25%.

Insider Buying and Selling

In other Hovnanian Enterprises news, CEO Ara K. Hovnanian sold 12,880 shares of the stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $125.78, for a total value of $1,620,046.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director J Larry Sorsby sold 1,032 shares of Hovnanian Enterprises stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $142.57, for a total transaction of $147,132.24. Following the sale, the director owned 187,416 shares in the company, valued at $26,719,899.12. This represents a 0.55% decrease in their position. The disclosure for this sale is available in the SEC filing. 22.67% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hovnanian Enterprises

A number of large investors have recently added to or reduced their stakes in HOV. Mutual Advisors LLC increased its holdings in Hovnanian Enterprises by 98.8% during the 4th quarter. Mutual Advisors LLC now owns 11,448 shares of the construction company's stock worth $1,117,000 after purchasing an additional 5,690 shares during the last quarter. Jennison Associates LLC boosted its stake in shares of Hovnanian Enterprises by 150.0% during the 4th quarter. Jennison Associates LLC now owns 12,950 shares of the construction company's stock valued at $1,263,000 after buying an additional 7,770 shares during the last quarter. Pacer Advisors Inc. boosted its stake in shares of Hovnanian Enterprises by 21.2% during the 4th quarter. Pacer Advisors Inc. now owns 42,063 shares of the construction company's stock valued at $4,103,000 after buying an additional 7,353 shares during the last quarter. Sterling Capital Management LLC grew its position in shares of Hovnanian Enterprises by 733.1% during the first quarter. Sterling Capital Management LLC now owns 2,291 shares of the construction company's stock worth $254,000 after buying an additional 2,016 shares in the last quarter. Finally, Legal Advantage Investments Inc. acquired a new stake in shares of Hovnanian Enterprises during the first quarter worth approximately $216,000. 65.40% of the stock is 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.

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