Hovnanian Enterprises (NYSE:HOV) Shares Gap Down After Earnings Miss

Hovnanian Enterprises Inc (NYSE:HOV)’s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $133.98, but opened at $123.02. Hovnanian Enterprises shares last traded at $114.0370, with a volume of 80,888 shares traded.

The construction company reported ($0.51) earnings per share for the quarter, missing the consensus estimate of $0.63 by ($1.14). Hovnanian Enterprises had a return on equity of 23.31% and a net margin of 5.06%.Hovnanian Enterprises’s revenue was down 16.5% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Wall Street Zen raised shares of Hovnanian Enterprises from a “sell” rating to a “hold” rating in a research note on Sunday, September 7th. Wedbush reiterated a “neutral” rating and set a $120.00 price objective on shares of Hovnanian Enterprises in a research report on Wednesday, August 27th. Weiss Ratings reissued a “hold (c)” rating on shares of Hovnanian Enterprises in a report on Wednesday, October 8th. Finally, Zacks Research raised Hovnanian Enterprises from a “strong sell” rating to a “hold” rating in a research note on Monday, November 10th. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus price target of $120.00.

Institutional Trading of Hovnanian Enterprises

Institutional investors and hedge funds have recently bought and sold shares of the stock. Corton Capital Inc. acquired a new position in Hovnanian Enterprises during the second quarter valued at $481,000. Forager Capital Management LLC grew its stake in Hovnanian Enterprises by 18.2% during the 2nd quarter. Forager Capital Management LLC now owns 239,500 shares of the construction company’s stock valued at $25,040,000 after acquiring an additional 36,828 shares in the last quarter. Aristeia Capital L.L.C. acquired a new position in shares of Hovnanian Enterprises in the 1st quarter valued at about $400,000. GAMMA Investing LLC lifted its position in shares of Hovnanian Enterprises by 553.9% in the second quarter. GAMMA Investing LLC now owns 994 shares of the construction company’s stock worth $104,000 after purchasing an additional 842 shares in the last quarter. Finally, Inceptionr LLC acquired a new stake in shares of Hovnanian Enterprises during the second quarter worth approximately $234,000. Institutional investors and hedge funds own 65.40% of the company’s stock.

Hovnanian Enterprises Price Performance

The stock has a market capitalization of $633.65 million, a PE ratio of 5.20 and a beta of 2.10. The company has a quick ratio of 0.36, a current ratio of 1.62 and a debt-to-equity ratio of 0.08. The stock’s 50-day moving average is $125.07 and its 200 day moving average is $122.47.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc, through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas.