Hovnanian Enterprises (NYSE:HOV) Stock Price Crosses Above 200 Day Moving Average - Time to Sell?

Key Points

• Hovnanian Enterprises stock moved above its 200-day moving average, trading as high as $127.27 and last changing hands at $125.60.
• Despite the price strength, Wall Street sentiment remains cautious: the stock has an average rating of “Reduce” and a consensus price target of $97.
• The company recently beat quarterly expectations, posting a smaller-than-expected loss and higher-than-forecast revenue, while insiders, including CEO Ara K. Hovnanian, have sold shares recently.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $115.38 and traded as high as $127.27. Hovnanian Enterprises shares last traded at $125.5980, with a volume of 102,483 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have commented on HOV shares. Weiss Ratings downgraded Hovnanian Enterprises from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, May 8th. Citizens Jmp assumed coverage on Hovnanian Enterprises in a research note on Thursday, April 9th. They issued a "market underperform" rating and a $74.00 price target for the company. Three analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $97.00.

Hovnanian Enterprises Stock Performance

The company has a market cap of $736.00 million, a P/E ratio of 34.51 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. The business has a fifty day simple moving average of $117.37 and a two-hundred day simple moving average of $115.38.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The construction company reported ($0.46) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($2.04) by $1.58. The business 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 Activity at Hovnanian Enterprises

In other news, CEO Ara K. Hovnanian sold 12,880 shares of the business's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $125.78, for a total transaction of $1,620,046.40. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director J Larry Sorsby sold 1,032 shares of the business's stock in a transaction 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 directly owned 187,416 shares of the company's stock, valued at approximately $26,719,899.12. The trade was a 0.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 22.67% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Hovnanian Enterprises

Institutional investors and hedge funds have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Hovnanian Enterprises by 5.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,979 shares of the construction company's stock valued at $312,000 after purchasing an additional 156 shares during the period. Jane Street Group LLC raised its stake in shares of Hovnanian Enterprises by 436.3% in the first quarter. Jane Street Group LLC now owns 9,106 shares of the construction company's stock worth $953,000 after buying an additional 7,408 shares during the period. Cetera Investment Advisers purchased a new position in shares of Hovnanian Enterprises during the 2nd quarter valued at about $506,000. Legal & General Group Plc lifted its position in shares of Hovnanian Enterprises by 6.9% during the 2nd quarter. Legal & General Group Plc now owns 5,239 shares of the construction company's stock valued at $548,000 after buying an additional 337 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its stake in shares of Hovnanian Enterprises by 26.1% during the 2nd quarter. Russell Investments Group Ltd. now owns 2,422 shares of the construction company's stock valued at $253,000 after acquiring an additional 502 shares during the period. 65.40% of the stock is currently owned by hedge funds and other institutional investors.

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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