Hovnanian Enterprises (NYSE:HOV) Hits New 1-Year Low - Time to Sell?

Key Points

• Hovnanian Enterprises shares fell 7.1%, reaching a new 52-week low of $90.17, well below its 50-day and 200-day moving averages of $117.69 and $119.12.
• Analysts remain cautious: the stock has an average “Reduce” rating and a $74 price target, with two analysts assigning Hold ratings and two assigning Sell ratings.
• The company’s latest quarterly results missed expectations, reporting a $0.70 loss per share versus a projected $0.56 loss and revenue of $705.75 million versus estimates of $723.50 million.

Shares of Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) hit a new 52-week low during trading on Tuesday. The stock traded as low as $90.17 and last traded at $90.36, with a volume of 250,309 shares changing hands. The stock had previously closed at $97.27.

Analysts Set New Price Targets

HOV has been the subject of several analyst reports. Weiss Ratings lowered shares of Hovnanian Enterprises from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, August 31st. Citigroup restated a "market underperform" rating on shares of Hovnanian Enterprises in a research report on Friday, August 21st. Two equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and an average price target of $74.00.

Hovnanian Enterprises Trading Down 7.1%

The company has a debt-to-equity ratio of 0.05, a current ratio of 1.46 and a quick ratio of 0.36. The firm has a market cap of $538.55 million, a price-to-earnings ratio of 95.12 and a beta of 1.82. The firm's fifty day moving average is $117.69 and its 200-day moving average is $119.12.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last issued its quarterly earnings results on Thursday, August 20th. The construction company reported ($0.70) earnings per share for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.14). Hovnanian Enterprises had a return on equity of 8.64% and a net margin of 0.64%. The business had revenue of $705.75 million for the quarter, compared to analyst estimates of $723.50 million. During the same quarter in the previous year, the business posted $1.99 earnings per share.

Institutional Investors Weigh In On Hovnanian Enterprises

Several institutional investors and hedge funds have recently made changes to their positions in the business. Public Employees Retirement System of Ohio acquired a new stake in Hovnanian Enterprises during the second quarter worth approximately $43,000. GAMMA Investing LLC increased its holdings in Hovnanian Enterprises by 24.8% in the third quarter. GAMMA Investing LLC now owns 473 shares of the construction company's stock worth $53,000 after purchasing an additional 94 shares in the last quarter. State of Wyoming bought a new stake in Hovnanian Enterprises in the first quarter worth approximately $62,000. Legal Advantage Investments Inc. acquired a new position in Hovnanian Enterprises in the first quarter valued at approximately $216,000. Finally, Sterling Capital Management LLC lifted its stake in Hovnanian Enterprises by 733.1% in the first quarter. Sterling Capital Management LLC now owns 2,291 shares of the construction company's stock valued at $254,000 after buying an additional 2,016 shares during the period. Institutional investors own 65.40% of the company's stock.

Hovnanian Enterprises Company Profile

Hovnanian Enterprises, Inc is a residential homebuilder that operates under the K. Hovnanian Homes brand. The company designs, constructs and markets new homes, including single-family detached houses, townhomes, condominiums and active-adult communities. Its homes are offered in a range of sizes, styles and price points to serve first-time buyers, move-up buyers and customers seeking age-restricted housing.

The company also provides related services that support its homebuilding operations, including mortgage financing and title and settlement services, where available.

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