Hovnanian Enterprises (NYSE:HOV) Trading Down 4.3% - Time to Sell?

Key Points

• Hovnanian Enterprises' shares fell 4.3% to $125.50 amid significantly lower trading volume, indicating potential investor concern.
• Analysts have issued mixed ratings on Hovnanian, with two holding a "Hold" rating and one a "Sell," while the stock has a consensus rating of "Reduce" and an average price target of $120.00.
• Recent earnings results showed Hovnanian missed expectations with an EPS of $1.99, significantly lower than the consensus estimate of $3.51, despite a revenue increase of 10.8% year-over-year.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) shares traded down 4.3% during mid-day trading on Monday . The company traded as low as $127.01 and last traded at $125.50. 43,298 shares were traded during trading, a decline of 61% from the average session volume of 110,084 shares. The stock had previously closed at $131.20.

Wall Street Analyst Weigh In

HOV has been the subject of several recent research reports. Weiss Ratings restated a "hold (c)" rating on shares of Hovnanian Enterprises in a report on Saturday, September 27th. Wall Street Zen upgraded Hovnanian Enterprises from a "sell" rating to a "hold" rating in a research report on Sunday, September 7th. Finally, Wedbush reissued a "neutral" rating and set a $120.00 price target on shares of Hovnanian Enterprises in a research report on Wednesday, August 27th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Hovnanian Enterprises has a consensus rating of "Reduce" and an average price target of $120.00.

Hovnanian Enterprises Stock Performance

The company has a debt-to-equity ratio of 0.08, a current ratio of 1.62 and a quick ratio of 0.36. The company has a market cap of $730.02 million, a PE ratio of 5.96 and a beta of 2.12. The company's fifty day moving average price is $139.82 and its 200 day moving average price is $115.18.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last posted its earnings results on Thursday, August 21st. The construction company reported $1.99 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.51 by ($1.52). Hovnanian Enterprises had a return on equity of 23.31% and a net margin of 5.06%.The firm had revenue of $800.58 million during the quarter, compared to analysts' expectations of $806.20 million. During the same quarter in the prior year, the company earned $9.75 earnings per share. The business's revenue for the quarter was up 10.8% compared to the same quarter last year. Hovnanian Enterprises has set its Q4 2025 guidance at EPS.

Insider Transactions at Hovnanian Enterprises

In related news, CEO Ara K. Hovnanian sold 609 shares of the company's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $138.31, for a total transaction of $84,230.79. Following the completion of the transaction, the chief executive officer owned 62,896 shares in the company, valued at approximately $8,699,145.76. This represents a 0.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 19.77% of the company's stock.

Institutional Investors Weigh In On Hovnanian Enterprises

A number of hedge funds have recently made changes to their positions in the stock. Forager Capital Management LLC increased its holdings in Hovnanian Enterprises by 18.2% in the 2nd quarter. Forager Capital Management LLC now owns 239,500 shares of the construction company's stock worth $25,040,000 after buying an additional 36,828 shares during the period. GW&K Investment Management LLC lifted its position in Hovnanian Enterprises by 2.9% in the first quarter. GW&K Investment Management LLC now owns 117,739 shares of the construction company's stock valued at $12,328,000 after buying an additional 3,270 shares during the last quarter. Foundry Partners LLC lifted its position in shares of Hovnanian Enterprises by 1.4% during the first quarter. Foundry Partners LLC now owns 66,520 shares of the construction company's stock worth $6,965,000 after purchasing an additional 897 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Hovnanian Enterprises by 20.7% during the first quarter. Charles Schwab Investment Management Inc. now owns 55,067 shares of the construction company's stock worth $5,766,000 after buying an additional 9,445 shares during the period. Finally, Assenagon Asset Management S.A. lifted its position in shares of Hovnanian Enterprises by 26.2% during the 1st quarter. Assenagon Asset Management S.A. now owns 40,423 shares of the construction company's stock worth $4,233,000 after buying an additional 8,388 shares during the last quarter. 65.40% of the stock is currently owned by hedge funds and other institutional investors.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc, through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas.

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