Hovnanian Enterprises (NYSE:HOV) Trading 9.6% Higher – Here’s Why

Hovnanian Enterprises Inc (NYSE:HOV) shares rose 9.6% on Wednesday . The stock traded as high as $140.00 and last traded at $139.7760. 36,148 shares changed hands during trading, a decline of 67% from the average daily volume of 109,542 shares. The stock had previously closed at $127.49.

Wall Street Analysts Forecast Growth

HOV has been the subject of a number of research reports. Wall Street Zen raised shares of Hovnanian Enterprises from a “sell” rating to a “hold” rating in a research report on Saturday, February 28th. Citizens Jmp started coverage on Hovnanian Enterprises in a research note on Thursday, April 9th. They issued a “market underperform” rating and a $74.00 price objective on the stock. Finally, Weiss Ratings downgraded Hovnanian Enterprises from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, May 8th. Three equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $97.00.

Hovnanian Enterprises Stock Performance

The company’s fifty day simple moving average is $112.43 and its 200 day simple moving average is $112.73. The stock has a market capitalization of $847.53 million, a P/E ratio of 39.73 and a beta of 1.84. The company has a current ratio of 1.50, a quick ratio of 0.40 and a debt-to-equity ratio of 0.05.

Hovnanian Enterprises (NYSE:HOV) last announced its earnings results on Thursday, May 21st. The construction company reported ($0.46) earnings per share for the quarter, topping analysts’ consensus estimates of ($2.04) by $1.58. The business had revenue of $667.65 million for the quarter, compared to analyst estimates of $626.40 million. Hovnanian Enterprises had a return on equity of 11.23% and a net margin of 1.25%.

Insider Activity

In other news, CEO Ara K. Hovnanian sold 12,880 shares of the firm’s 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 sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Company insiders own 22.67% of the company’s stock.

Hedge Funds Weigh In On Hovnanian Enterprises

A number of hedge funds have recently modified their holdings of HOV. Penn Capital Management Company LLC bought a new position in Hovnanian Enterprises in the 3rd quarter valued at approximately $683,000. Mutual Advisors LLC increased its holdings in shares of Hovnanian Enterprises by 98.8% in the 4th quarter. Mutual Advisors LLC now owns 11,448 shares of the construction company’s stock worth $1,117,000 after purchasing an additional 5,690 shares in the last quarter. Jennison Associates LLC increased its holdings in shares of Hovnanian Enterprises by 150.0% in the 4th quarter. Jennison Associates LLC now owns 12,950 shares of the construction company’s stock worth $1,263,000 after purchasing an additional 7,770 shares in the last quarter. Pacer Advisors Inc. raised its stake in shares of Hovnanian Enterprises by 21.2% in the fourth quarter. Pacer Advisors Inc. now owns 42,063 shares of the construction company’s stock worth $4,103,000 after purchasing an additional 7,353 shares during the last quarter. Finally, International Assets Investment Management LLC purchased a new position in shares of Hovnanian Enterprises in the fourth quarter worth $117,000. Hedge funds and other 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.