Hovnanian Enterprises (NYSE:HOV) Stock Price Up 11% - Still a Buy?

Key Points

• Hovnanian's shares jumped about 11% intraday to roughly $116 on Friday, though trading was light (≈37,587 shares, down ~64% from the average).
• The company reported a big earnings beat—Q (quarter) EPS of $2.62 versus a consensus -$0.98 and revenue of $631.95M—and shows low leverage (debt-to-equity 0.04) with a 14.14% ROE.
• Despite the move and strong results, analyst sentiment is cautious: MarketBeat lists an average rating of Reduce with an average price target of $97 (three Holds and one Sell).

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report)'s share price rose 11% during mid-day trading on Friday . The company traded as high as $115.22 and last traded at $116.1790. Approximately 37,587 shares traded hands during trading, a decline of 64% from the average daily volume of 104,746 shares. The stock had previously closed at $104.71.

Wall Street Analysts Forecast Growth

HOV has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Hovnanian Enterprises in a research note on Thursday, January 22nd. Citizens Jmp initiated coverage on shares of Hovnanian Enterprises in a research note on Thursday, April 9th. They set a "market underperform" rating and a $74.00 price target on the stock. Finally, Wall Street Zen raised shares of Hovnanian Enterprises from a "sell" rating to a "hold" rating in a research note on Saturday, February 28th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $97.00.

Hovnanian Enterprises Trading Up 10.9%

The firm has a market cap of $689.63 million, a PE ratio of 17.78 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 company's 50 day moving average price is $115.58 and its two-hundred day moving average price is $116.73.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last announced its earnings results on Wednesday, February 25th. The construction company reported $2.62 earnings per share for the quarter, beating 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 business had revenue of $631.95 million for the quarter, compared to the consensus estimate of $628.50 million.

Institutional Investors Weigh In On Hovnanian Enterprises

Hedge funds and other institutional investors have recently made changes to their positions in the company. State of Alaska Department of Revenue purchased a new stake in shares of Hovnanian Enterprises in the third quarter valued at $35,000. Osaic Holdings Inc. raised its stake in shares of Hovnanian Enterprises by 72.1% in 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 during the period. Tower Research Capital LLC TRC raised its stake in shares of Hovnanian Enterprises by 614.1% in 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 during the period. GAMMA Investing LLC raised its stake in shares of Hovnanian Enterprises by 9.8% in the third quarter. GAMMA Investing LLC now owns 1,091 shares of the construction company's stock valued at $140,000 after acquiring an additional 97 shares during the period. Finally, International Assets Investment Management LLC purchased a new stake in shares of Hovnanian Enterprises in the fourth quarter valued at $117,000. Hedge funds and other institutional investors own 65.40% of the company's stock.

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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