Hovnanian Enterprises (NYSE:HOV) Trading Down 6.2% - Time to Sell?

Key Points

• Hovnanian Enterprises (NYSE:HOV) experienced a significant decline of 6.2% during trading on Monday, with shares dropping to $135.03 from a previous close of $143.96.
• According to recent analyst ratings, Hovnanian currently holds a consensus rating of "Reduce" with a price target of $120.00, indicating cautious sentiment among analysts.
• Hovnanian's latest quarterly earnings report showed an earnings per share of $1.99, falling short of the expected $3.51, alongside a revenue of $800.58 million, which also missed analyst expectations.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) fell 6.2% during mid-day trading on Monday . The company traded as low as $135.23 and last traded at $135.03. 39,010 shares changed hands during trading, a decline of 65% from the average session volume of 111,262 shares. The stock had previously closed at $143.96.

Analyst Ratings Changes

A number of brokerages have weighed in on HOV. Wedbush reiterated a "neutral" rating and issued a $120.00 price objective on shares of Hovnanian Enterprises in a research report on Wednesday, August 27th. Wall Street Zen upgraded shares of Hovnanian Enterprises from a "sell" rating to a "hold" rating in a research report on Sunday, September 7th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $120.00.

Hovnanian Enterprises Stock Performance

The company has a market cap of $792.18 million, a PE ratio of 6.48 and a beta of 2.12. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.36 and a current ratio of 1.62. The firm's 50 day moving average is $136.37 and its 200-day moving average is $113.49.

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

Insider Buying and Selling

In other Hovnanian Enterprises news, Director Edward A. Kangas sold 5,500 shares of the stock in a transaction that occurred on Monday, June 30th. The shares were sold at an average price of $107.12, for a total transaction of $589,160.00. Following the sale, the director directly owned 5,338 shares in the company, valued at $571,806.56. This represents a 50.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Ara K. Hovnanian sold 609 shares of the stock in a transaction that occurred on Thursday, August 28th. The stock was sold at an average price of $138.31, for a total transaction of $84,230.79. Following the sale, the chief executive officer owned 62,896 shares in the company, valued at approximately $8,699,145.76. This trade represents a 0.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. 19.77% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Hovnanian Enterprises

A number of hedge funds and other institutional investors have recently modified their holdings of HOV. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Hovnanian Enterprises by 4.3% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,823 shares of the construction company's stock valued at $378,000 after buying an additional 117 shares during the last quarter. Osaic Holdings Inc. grew its position in shares of Hovnanian Enterprises by 72.1% in the 2nd quarter. Osaic Holdings Inc. now owns 432 shares of the construction company's stock valued at $45,000 after buying an additional 181 shares during the last quarter. California State Teachers Retirement System grew its position in shares of Hovnanian Enterprises by 4.0% in the 4th quarter. California State Teachers Retirement System now owns 4,724 shares of the construction company's stock valued at $632,000 after buying an additional 182 shares during the last quarter. Exchange Traded Concepts LLC grew its position in shares of Hovnanian Enterprises by 10.1% in the 1st quarter. Exchange Traded Concepts LLC now owns 2,350 shares of the construction company's stock valued at $246,000 after buying an additional 215 shares during the last quarter. Finally, Harbor Capital Advisors Inc. grew its position in shares of Hovnanian Enterprises by 23.7% in the 2nd quarter. Harbor Capital Advisors Inc. now owns 1,259 shares of the construction company's stock valued at $132,000 after buying an additional 241 shares during the last quarter. 65.40% of the stock is currently owned by institutional investors and hedge funds.

Hovnanian Enterprises Company Profile

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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