Hovnanian Enterprises (NYSE:HOV) Shares Pass Above Two Hundred Day Moving Average - Here's What Happened

Key Points

• Hovnanian Enterprises shares briefly moved above their 200-day moving average of $119.62, reaching $120.64 before last trading at $116.21 on volume of 90,214 shares.
• Analysts remain cautious, with the stock carrying a consensus rating of “Reduce” and an average price target of $74.00; Citigroup maintained its “market underperform” rating, while Weiss Ratings downgraded its hold assessment.
• The company reported weaker-than-expected quarterly results, posting a $0.70 loss per share versus the $0.56 expected and revenue of $705.75 million versus the $723.50 million consensus estimate. Insiders also sold shares, while institutional ownership stands at 65.40%.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $119.62 and traded as high as $120.64. Hovnanian Enterprises shares last traded at $116.2050, with a volume of 90,214 shares traded.

Analyst Upgrades and Downgrades

HOV has been the topic of a number of recent research reports. Citigroup reiterated a "market underperform" rating on shares of Hovnanian Enterprises in a research note on Friday, August 21st. Weiss Ratings lowered shares of Hovnanian Enterprises from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, August 31st. Two investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $74.00.

Hovnanian Enterprises Stock Down 1.8%

The stock has a market cap of $692.58 million, a price-to-earnings ratio of 122.32 and a beta of 1.83. The firm has a 50 day simple moving average of $128.98 and a two-hundred day simple moving average of $119.62. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.46 and a quick ratio of 0.36.

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

Insider Buying and Selling at Hovnanian Enterprises

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

Institutional Investors Weigh In On Hovnanian Enterprises

Large investors have recently made changes to their positions in the stock. Engineers Gate Manager LP bought a new stake in shares of Hovnanian Enterprises in the 2nd quarter valued at about $986,000. Squarepoint Ops LLC acquired a new stake in Hovnanian Enterprises during the second quarter worth approximately $301,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Hovnanian Enterprises during the 2nd quarter worth approximately $1,225,000. California State Teachers Retirement System lifted its holdings in shares of Hovnanian Enterprises by 23,681.0% during the second quarter. California State Teachers Retirement System now owns 711,765 shares of the construction company's stock worth $101,362,000 after buying an additional 708,772 shares in the last quarter. Finally, Public Employees Retirement System of Ohio bought a new stake in Hovnanian Enterprises in the 2nd quarter valued at about $43,000. Institutional investors and hedge funds 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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