Hovnanian Enterprises (NYSE:HOV) Shares Gap Up - Here's What Happened

Key Points

• Hovnanian Enterprises shares opened sharply higher, rising from a prior close of $115.01 to $120.31 before trading around $116.47.
• Analyst sentiment remains weak: the stock carries an average “Reduce” rating and a $74 price target, with ratings split between Hold and Sell.
• 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.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) gapped up before the market opened on Friday. The stock had previously closed at $115.01, but opened at $120.31. Hovnanian Enterprises shares last traded at $116.4710, with a volume of 16,075 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on HOV shares. Weiss Ratings cut Hovnanian Enterprises from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, August 31st. Citigroup reissued a "market underperform" rating on shares of Hovnanian Enterprises in a research report on Friday, August 21st. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Hovnanian Enterprises presently has an average rating of "Reduce" and an average price target of $74.00.

Hovnanian Enterprises Trading Up 0.5%

The stock's fifty day simple moving average is $124.39 and its two-hundred day simple moving average is $119.39. The firm has a market cap of $688.62 million, a PE ratio of 121.78 and a beta of 1.82. The company has a quick ratio of 0.36, a current ratio of 1.46 and a debt-to-equity ratio of 0.05.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last released its earnings results on Thursday, August 20th. The construction company reported ($0.70) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.56) by ($0.14). Hovnanian Enterprises had a net margin of 0.64% and a return on equity of 8.64%. The business had revenue of $705.75 million for the quarter, compared to analysts' expectations 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

Hedge funds have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio bought a new position in shares of Hovnanian Enterprises during the second quarter valued at $43,000. State of Wyoming bought a new position in Hovnanian Enterprises in the 1st quarter worth about $62,000. Legal Advantage Investments Inc. purchased a new stake in Hovnanian Enterprises during the 1st quarter valued at about $216,000. Squarepoint Ops LLC purchased a new stake in Hovnanian Enterprises during the 2nd quarter valued at about $301,000. Finally, Sterling Capital Management LLC increased its stake in Hovnanian Enterprises by 733.1% during the 1st quarter. Sterling Capital Management LLC now owns 2,291 shares of the construction company's stock valued at $254,000 after purchasing an additional 2,016 shares in the last quarter. 65.40% of the stock is owned by institutional investors.

Hovnanian Enterprises Company Profile

Hovnanian Enterprises, Inc is a residential homebuilding company that designs, constructs and sells new homes in the United States. Its offerings include single-family homes, townhomes and other attached housing, as well as communities designed for active-adult and age-targeted buyers. The company serves a range of customer segments, including first-time, move-up and luxury homebuyers.

Founded in 1959 by Kevork S. Hovnanian, the company has expanded from its New Jersey roots into selected markets across the Northeast, Mid-Atlantic and Southeast regions of the United States, along with other markets served through its operating divisions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.