Hovnanian Enterprises (NYSE:HOV) Stock Price Down 8.1% - Here's What Happened

Key Points

• Fell by 8.1% — Hovnanian shares dropped to $101.52 on Monday on lighter-than-average volume (57,628 shares, down 45% vs. average) and trade below the 50-day ($113.33) and 200-day ($116.04) moving averages.
• Analysts' consensus rating is 'Reduce' with a $97 target, reflecting three Hold ratings and one Sell after recent coverage and rating changes.
• Fundamentals: the company reported quarterly EPS of $2.62 vs. a consensus of (‑$0.98) and revenue of $631.95M; market cap is $594.19M, P/E 15.32 and debt-to-equity is very low at 0.04.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) traded down 8.1% on Monday . The stock traded as low as $102.81 and last traded at $101.52. 57,628 shares were traded during trading, a decline of 45% from the average session volume of 105,313 shares. The stock had previously closed at $110.46.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Wall Street Zen upgraded shares of Hovnanian Enterprises from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th. Citizens Jmp started coverage on shares of Hovnanian Enterprises in a report on Thursday, April 9th. They set a "market underperform" rating and a $74.00 price target for the company. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Hovnanian Enterprises in a report on Thursday, January 22nd. Three investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $97.00.

Hovnanian Enterprises Price Performance

The stock has a market cap of $594.19 million, a price-to-earnings ratio of 15.32 and a beta of 1.87. The company's 50 day moving average is $113.33 and its 200 day moving average is $116.04. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.50 and a quick ratio of 0.43.

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

Hedge Funds Weigh In On Hovnanian Enterprises

Several hedge funds have recently bought and sold shares of HOV. State Street Corp boosted its position in Hovnanian Enterprises by 8.6% during the fourth quarter. State Street Corp now owns 228,613 shares of the construction company's stock worth $22,299,000 after purchasing an additional 18,086 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Hovnanian Enterprises by 2.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 175,186 shares of the construction company's stock valued at $17,089,000 after buying an additional 3,514 shares in the last quarter. GW&K Investment Management LLC raised its stake in shares of Hovnanian Enterprises by 7.6% during the 4th quarter. GW&K Investment Management LLC now owns 121,488 shares of the construction company's stock worth $11,850,000 after buying an additional 8,571 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Hovnanian Enterprises by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 111,600 shares of the construction company's stock worth $10,888,000 after buying an additional 1,057 shares during the last quarter. Finally, Towle & Co. boosted its position in shares of Hovnanian Enterprises by 51.2% in the 4th quarter. Towle & Co. now owns 99,402 shares of the construction company's stock worth $9,696,000 after buying an additional 33,681 shares in the last quarter. 65.40% of the stock is owned by hedge funds and other institutional investors.

About Hovnanian Enterprises

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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