Hovnanian Enterprises Inc (NYSE:HOV) Receives Average Recommendation of “Reduce” from Brokerages

Shares of Hovnanian Enterprises Inc (NYSE:HOV) have earned a consensus rating of “Reduce” from the five ratings firms that are presently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation and three have issued a hold recommendation on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $97.00.

A number of brokerages have issued reports on HOV. Citigroup reiterated a “market underperform” rating on shares of Hovnanian Enterprises in a research report on Friday. Weiss Ratings upgraded Hovnanian Enterprises from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, July 16th.

Hovnanian Enterprises News Summary

Here are the key news stories impacting Hovnanian Enterprises this week:

• Positive Sentiment: Hovnanian forecast fiscal fourth-quarter revenue of $800 million to $900 million, above the roughly $784 million analyst consensus, and set a gross-margin target of 15% to 16.5%. Hovnanian forecasts fourth-quarter revenue and gross margin
• Positive Sentiment: The company said it met or exceeded guidance on nearly all reported metrics, while gross margins improved sequentially for the second consecutive quarter. The dollar value of its consolidated domestic backlog also increased 5% year over year. Hovnanian fiscal 2026 third-quarter results
• Neutral Sentiment: Management’s earnings call emphasized an uncertain, “frozen” housing market, suggesting that elevated affordability challenges and cautious buyers remain important factors for future orders and home deliveries. Hovnanian Q3 2026 earnings call transcript
• Negative Sentiment: Fiscal third-quarter EPS was a $0.70 loss, worse than the expected $0.56 loss and sharply below the $1.99 profit recorded a year earlier. Revenue of $705.75 million also missed the $723.5 million consensus estimate. Hovnanian reports fiscal 2026 third-quarter results
• Negative Sentiment: The earnings shortfall and ongoing housing-market weakness raised concerns about near-term profitability, prompting the negative investor reaction despite the company’s better fourth-quarter revenue outlook. Hovnanian falls after weak third-quarter results

Hovnanian Enterprises Trading Down 7.4%

Shares of Hovnanian Enterprises stock opened at $118.19 on Friday. The firm has a 50-day simple moving average of $131.35 and a two-hundred day simple moving average of $119.83. The company has a market cap of $692.59 million, a P/E ratio of 32.47 and a beta of 1.83. Hovnanian Enterprises has a fifty-two week low of $91.52 and a fifty-two week high of $162.05. 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 (NYSE:HOV) last posted 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). Hovnanian Enterprises had a net margin of 1.25% and a return on equity of 11.23%. The business had revenue of $705.75 million for the quarter, compared to analyst estimates of $723.50 million. During the same quarter last year, the business earned $1.99 earnings per share.

Insiders Place Their Bets

In other Hovnanian Enterprises news, CEO Ara K. Hovnanian sold 12,880 shares of the company’s stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $125.78, for a total transaction of $1,620,046.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director J Larry Sorsby sold 1,032 shares of the stock in a transaction on Thursday, June 25th. The shares were 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 in the company, valued at approximately $26,719,899.12. The trade was a 0.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 22.67% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of HOV. Marshall Wace LLP increased its stake in Hovnanian Enterprises by 686.3% during the 4th quarter. Marshall Wace LLP now owns 42,460 shares of the construction company’s stock worth $4,142,000 after buying an additional 37,060 shares in the last quarter. Towle & Co. lifted its position in shares of Hovnanian Enterprises by 51.2% in the fourth quarter. Towle & Co. now owns 99,402 shares of the construction company’s stock valued at $9,696,000 after acquiring an additional 33,681 shares in the last quarter. Empowered Funds LLC boosted its stake in shares of Hovnanian Enterprises by 46.5% in the first quarter. Empowered Funds LLC now owns 73,146 shares of the construction company’s stock worth $8,113,000 after acquiring an additional 23,234 shares during the last quarter. State Street Corp boosted its stake in shares of Hovnanian Enterprises by 8.6% in the fourth quarter. State Street Corp now owns 228,613 shares of the construction company’s stock worth $22,299,000 after acquiring an additional 18,086 shares during the last quarter. Finally, Sei Investments Co. increased its position in shares of Hovnanian Enterprises by 101.9% during the first quarter. Sei Investments Co. now owns 35,288 shares of the construction company’s stock worth $3,914,000 after purchasing an additional 17,811 shares in the last quarter. Institutional investors and hedge funds own 65.40% of the company’s stock.

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.