Hovnanian Enterprises (NYSE:HOV) Trading Down 6.2% - Should You 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)'s share price fell 6.2% on Monday . The stock traded as low as $135.23 and last traded at $135.03. 39,010 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 111,262 shares. The stock had previously closed at $143.96.

Analysts Set New Price Targets

Several research firms have weighed in on HOV. Wedbush reissued a "neutral" rating and issued a $120.00 price target on shares of Hovnanian Enterprises in a research note on Wednesday, August 27th. Wall Street Zen raised shares of Hovnanian Enterprises from a "sell" rating to a "hold" rating in a research note on Sunday, September 7th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Hovnanian Enterprises currently has a consensus rating of "Reduce" and an average target price of $120.00.

Hovnanian Enterprises Trading Up 0.5%

The stock has a market capitalization of $797.82 million, a P/E ratio of 6.53 and a beta of 2.12. The firm's 50 day moving average price is $136.73 and its 200 day moving average price is $113.67. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.62 and a quick ratio of 0.36.

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

Insider Activity

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

Hedge Funds Weigh In On Hovnanian Enterprises

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Osaic Holdings Inc. increased its position in shares of 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 buying an additional 181 shares during the period. Caxton Associates LLP grew its holdings in Hovnanian Enterprises by 72.0% in the second quarter. Caxton Associates LLP now owns 9,820 shares of the construction company's stock worth $1,027,000 after purchasing an additional 4,112 shares during the period. Tower Research Capital LLC TRC grew its holdings in Hovnanian Enterprises by 614.1% in the second quarter. Tower Research Capital LLC TRC now owns 557 shares of the construction company's stock worth $58,000 after purchasing an additional 479 shares during the period. Rafferty Asset Management LLC grew its holdings in Hovnanian Enterprises by 14.0% in the second quarter. Rafferty Asset Management LLC now owns 3,752 shares of the construction company's stock worth $392,000 after purchasing an additional 461 shares during the period. Finally, BNP Paribas Financial Markets grew its holdings in Hovnanian Enterprises by 39.1% in the second quarter. BNP Paribas Financial Markets now owns 17,942 shares of the construction company's stock worth $1,876,000 after purchasing an additional 5,043 shares during the period. Hedge funds and other institutional investors own 65.40% of the company's stock.

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.