Hovnanian Enterprises (NYSE:HOV) Shares Gap Down Following Weak Earnings

Shares of Hovnanian Enterprises Inc (NYSE:HOV) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $127.67, but opened at $119.99. Hovnanian Enterprises shares last traded at $111.70, with a volume of 31,088 shares.

The construction company reported ($0.70) EPS for the quarter, missing the consensus estimate of ($0.56) by ($0.14). The company had revenue of $705.75 million for the quarter, compared to analysts’ expectations of $723.50 million. Hovnanian Enterprises had a net margin of 1.25% and a return on equity of 11.23%. During the same period in the prior year, the company earned $1.99 earnings per share.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings upgraded Hovnanian Enterprises from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, July 16th. Three research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average target price of $97.00.

Insiders Place Their Bets

In related news, CEO Ara K. Hovnanian sold 12,880 shares of the stock in a transaction on 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 document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director J Larry Sorsby sold 1,032 shares of Hovnanian Enterprises stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $142.57, for a total value of $147,132.24. Following the sale, the director directly owned 187,416 shares of the company’s stock, valued at approximately $26,719,899.12. The trade was a 0.55% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 22.67% of the company’s stock.

Institutional Investors Weigh In On Hovnanian Enterprises

Several large investors have recently made changes to their positions in HOV. Empowered Funds LLC lifted its stake in Hovnanian Enterprises by 46.5% in the first quarter. Empowered Funds LLC now owns 73,146 shares of the construction company’s stock valued at $8,113,000 after acquiring an additional 23,234 shares during the last quarter. Jennison Associates LLC increased its stake in shares of Hovnanian Enterprises by 150.0% during 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 during the last quarter. Pacer Advisors Inc. raised its holdings in shares of Hovnanian Enterprises by 21.2% during the 4th quarter. Pacer Advisors Inc. now owns 42,063 shares of the construction company’s stock valued at $4,103,000 after purchasing an additional 7,353 shares in the last quarter. Mutual Advisors LLC raised its holdings in shares of Hovnanian Enterprises by 98.8% during the 4th quarter. Mutual Advisors LLC now owns 11,448 shares of the construction company’s stock valued at $1,117,000 after purchasing an additional 5,690 shares in the last quarter. Finally, Sei Investments Co. lifted its stake in shares of Hovnanian Enterprises by 101.9% in the 1st quarter. Sei Investments Co. now owns 35,288 shares of the construction company’s stock valued at $3,914,000 after purchasing an additional 17,811 shares during the last quarter. Institutional investors own 65.40% of the company’s stock.

Hovnanian Enterprises Stock Performance

The firm has a market cap of $654.42 million, a price-to-earnings ratio of 31.00 and a beta of 1.83. The firm’s 50 day moving average is $131.40 and its 200-day moving average is $119.79. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.40 and a current ratio of 1.50.

Hovnanian Enterprises Company Profile

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.