Hovnanian Enterprises (NYSE:HOV) Stock Falls 5.5% - Here's What Happened

Key Points

• Hovnanian Enterprises shares fell 5.5% in mid-day trading to about $91.94, while trading volume was 73% below the average session volume.
• Analyst sentiment remains negative: the stock carries an average “Reduce” rating and a $74 price target, with two analysts rating it Hold and two rating it Sell.
• The company missed quarterly expectations, reporting a loss of $0.70 per share versus the $0.56 expected and revenue of $705.75 million versus estimates of $723.50 million.

Shares of Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report) were down 5.5% during mid-day trading on Monday. The stock traded as low as $93.16 and last traded at $91.9360. 32,185 shares were traded during trading, a decline of 73% from the average session volume of 117,978 shares. The stock had previously closed at $97.27.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. 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 report on Friday, August 21st. Two equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Hovnanian Enterprises currently has an average rating of "Reduce" and an average price target of $74.00.

Hovnanian Enterprises Stock Down 3.4%

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 company has a market capitalization of $560.07 million, a P/E ratio of 99.03 and a beta of 1.82. The stock has a 50-day moving average price of $118.52 and a 200-day moving average price of $119.27.

Hovnanian Enterprises (NYSE:HOV - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $705.75 million during the quarter, compared to analyst estimates of $723.50 million. Hovnanian Enterprises had a return on equity of 8.64% and a net margin of 0.64%. During the same period in the prior year, the firm earned $1.99 earnings per share.

Institutional Investors Weigh In On Hovnanian Enterprises

A number of institutional investors have recently modified their holdings of the company. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Hovnanian Enterprises during the second quarter worth $1,225,000. Empowered Funds LLC raised its holdings in shares of Hovnanian Enterprises by 46.5% during the first quarter. Empowered Funds LLC now owns 73,146 shares of the construction company's stock valued at $8,113,000 after purchasing an additional 23,234 shares during the period. Globeflex Capital L P bought a new position in shares of Hovnanian Enterprises during the 2nd quarter worth about $2,497,000. Engineers Gate Manager LP acquired a new stake in shares of Hovnanian Enterprises in the 2nd quarter valued at about $986,000. Finally, Sei Investments Co. raised its stake in Hovnanian Enterprises by 101.9% during the 1st quarter. Sei Investments Co. now owns 35,288 shares of the construction company's stock worth $3,914,000 after buying an additional 17,811 shares during the period. 65.40% of the stock is owned by institutional investors.

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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