Hovnanian Enterprises (NYSE:HOV) Stock Price Up 6.8% - Should You Buy?

Key Points

• Hovnanian Enterprises shares rose 6.8% to about $102.17, although trading volume was 91% below the average daily level.
• Analysts remain cautious: the stock has a consensus “Reduce” rating and an average price target of $74, well below its recent trading price.
• The company missed quarterly expectations, reporting a $0.70 loss per share versus the $0.56 expected loss and revenue of $705.75 million versus $723.50 million forecast.

Hovnanian Enterprises Inc (NYSE:HOV - Get Free Report)'s stock price shot up 6.8% on Thursday. The company traded as high as $100.96 and last traded at $102.1670. Approximately 10,930 shares changed hands during trading, a decline of 91% from the average daily volume of 117,564 shares. The stock had previously closed at $95.63.

Wall Street Analysts Forecast Growth

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

Hovnanian Enterprises Price Performance

The company has a current ratio of 1.46, a quick ratio of 0.36 and a debt-to-equity ratio of 0.05. The business has a fifty day moving average price of $119.98 and a 200-day moving average price of $119.38. The stock has a market capitalization of $613.75 million, a PE ratio of 108.67 and a beta of 1.82.

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 analysts' consensus estimates of ($0.56) by ($0.14). The business had revenue of $705.75 million during the quarter, compared to analysts' expectations of $723.50 million. Hovnanian Enterprises had a return on equity of 8.64% and a net margin of 0.64%. During the same quarter in the previous year, the business earned $1.99 EPS.

Hedge Funds Weigh In On Hovnanian Enterprises

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Public Employees Retirement System of Ohio purchased a new stake in shares of Hovnanian Enterprises in the 2nd quarter worth about $43,000. GAMMA Investing LLC grew its stake in shares of 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 acquiring an additional 94 shares during the period. State of Wyoming bought a new stake in shares of Hovnanian Enterprises in the first quarter worth $62,000. Legal Advantage Investments Inc. purchased a new stake in Hovnanian Enterprises during the first quarter valued at approximately $216,000. Finally, Squarepoint Ops LLC purchased a new stake in Hovnanian Enterprises in the 2nd quarter worth approximately $301,000. Hedge funds and other institutional investors own 65.40% of the company's stock.

About Hovnanian Enterprises

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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