Hovnanian Enterprises (NYSE:HOV) Sees Large Volume Increase - What's Next?

Key Points

• Hovnanian Enterprises shares traded below their prior close at approximately $127.50, while volume reached 49,278 shares—59% lower than the previous session.
• Analysts remain cautious: the stock has an average “Reduce” rating and a consensus price target of $74, well below its recent trading level.
• The company missed quarterly expectations, reporting a loss of $0.70 per share versus a projected loss of $0.56, while revenue of $705.75 million also fell short of estimates.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) shares saw unusually-strong trading volume on Monday . 49,278 shares changed hands during mid-day trading, a decline of 59% from the previous session's volume of 119,006 shares.The stock last traded at $127.5030 and had previously closed at $129.77.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of Hovnanian Enterprises from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, July 16th. 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 given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $74.00.

Hovnanian Enterprises Stock Performance

The stock's 50 day moving average is $131.84 and its two-hundred day moving average is $120.13. The firm has a market capitalization of $743.17 million, a P/E ratio of 133.50 and a beta of 1.83. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.50 and a quick ratio of 0.40.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last released its earnings results on Thursday, August 20th. The construction company reported ($0.70) EPS for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.14). The business had revenue of $705.75 million for the quarter, compared to analyst estimates of $723.50 million. Hovnanian Enterprises had a return on equity of 8.60% and a net margin of 0.64%.During the same period in the prior year, the firm posted $1.99 EPS.

Insider Transactions at Hovnanian Enterprises

In other news, Director J Larry Sorsby sold 1,032 shares of the business's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $142.57, for a total transaction of $147,132.24. Following the completion of the transaction, the director directly owned 187,416 shares in the company, valued at approximately $26,719,899.12. The trade was a 0.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Ara K. Hovnanian sold 12,880 shares of the company's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $125.78, for a total value of $1,620,046.40. The SEC filing for this sale provides additional information. Corporate insiders own 22.67% of the company's stock.

Institutional Investors Weigh In On Hovnanian Enterprises

Large investors have recently bought and sold shares of the company. Public Employees Retirement System of Ohio bought a new stake in shares of Hovnanian Enterprises in the 2nd quarter valued at $43,000. Osaic Holdings Inc. raised 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 worth $45,000 after purchasing an additional 181 shares during the period. Tower Research Capital LLC TRC lifted its holdings in shares of Hovnanian Enterprises by 614.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 557 shares of the construction company's stock valued at $58,000 after purchasing an additional 479 shares in the last quarter. State of Wyoming acquired a new position in shares of Hovnanian Enterprises in the 1st quarter valued at approximately $62,000. Finally, International Assets Investment Management LLC bought a new stake in Hovnanian Enterprises during the 4th quarter worth approximately $117,000. Institutional investors own 65.40% of the company's stock.

About Hovnanian Enterprises

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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