Hovnanian Enterprises (NYSE:HOV) Stock Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Hovnanian shares moved above their 200-day moving average of $116.33, trading as high as $121.15 and last at about $117.26 on Friday (volume ~108k shares).
• Analyst sentiment is cautious: three Holds and one Sell translate to a consensus rating of Reduce with a consensus target price of $97.00.
• Fundamentals show a strong quarterly beat — EPS of $2.62 vs. an expected ($0.98) and revenue of $631.95M — while the company has a market cap of ~$696M, a P/E around 18, and ~65.4% institutional ownership.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $116.33 and traded as high as $121.15. Hovnanian Enterprises shares last traded at $117.2550, with a volume of 108,223 shares.

Analysts Set New Price Targets

HOV has been the subject of several research analyst reports. Citizens Jmp initiated coverage on Hovnanian Enterprises in a research note on Thursday, April 9th. They issued a "market underperform" rating and a $74.00 price objective for the company. Wall Street Zen upgraded Hovnanian Enterprises from a "sell" rating to a "hold" rating in a research note on Saturday, February 28th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Hovnanian Enterprises in a research note on Thursday, January 22nd. Three investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus target price of $97.00.

Hovnanian Enterprises Stock Performance

The stock has a market capitalization of $696.49 million, a PE ratio of 17.96 and a beta of 2.08. The company has a quick ratio of 0.43, a current ratio of 1.50 and a debt-to-equity ratio of 0.04. The firm has a 50 day moving average price of $114.61 and a 200-day moving average price of $116.33.

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

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of HOV. State of Alaska Department of Revenue purchased a new position in Hovnanian Enterprises during the third quarter valued at approximately $35,000. Osaic Holdings Inc. raised its position in Hovnanian Enterprises by 72.1% during the second quarter. Osaic Holdings Inc. now owns 432 shares of the construction company's stock valued at $45,000 after acquiring an additional 181 shares in the last quarter. Tower Research Capital LLC TRC raised its position in Hovnanian Enterprises by 614.1% during the second quarter. Tower Research Capital LLC TRC now owns 557 shares of the construction company's stock valued at $58,000 after acquiring an additional 479 shares in the last quarter. International Assets Investment Management LLC purchased a new position in Hovnanian Enterprises during the fourth quarter valued at approximately $117,000. Finally, Harbor Capital Advisors Inc. raised its position in Hovnanian Enterprises by 38.1% during the fourth quarter. Harbor Capital Advisors Inc. now owns 1,369 shares of the construction company's stock valued at $134,000 after acquiring an additional 378 shares in the last quarter. 65.40% of the stock is currently 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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