Hovnanian Enterprises (NYSE:HOV) Shares Up 7.9% on Earnings Beat

Hovnanian Enterprises Inc (NYSE:HOV) shares rose 7.9% on Thursday following a better than expected earnings announcement. The company traded as high as $106.01 and last traded at $105.7980. Approximately 20,531 shares traded hands during trading, a decline of 81% from the average daily volume of 106,545 shares. The stock had previously closed at $98.01.

The construction company reported ($0.46) earnings per share (EPS) for the quarter, topping the consensus estimate of ($2.04) by $1.58. Hovnanian Enterprises had a net margin of 1.92% and a return on equity of 14.14%.

Analyst Ratings Changes

Several brokerages have issued reports on HOV. Weiss Ratings lowered Hovnanian Enterprises from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, May 8th. Citizens Jmp started coverage on Hovnanian Enterprises in a research report on Thursday, April 9th. They set a “market underperform” rating and a $74.00 target price on the stock. Finally, Wall Street Zen upgraded Hovnanian Enterprises from a “sell” rating to a “hold” rating in a report on Saturday, February 28th. Three equities 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, the stock currently has a consensus rating of “Reduce” and an average target price of $97.00.

Institutional Trading of Hovnanian Enterprises

Institutional investors and hedge funds have recently modified their holdings of the stock. Teacher Retirement System of Texas increased its holdings in Hovnanian Enterprises by 292.2% during the third quarter. Teacher Retirement System of Texas now owns 59,080 shares of the construction company’s stock worth $7,591,000 after buying an additional 44,017 shares during the last quarter. Marshall Wace LLP boosted its stake in Hovnanian Enterprises by 686.3% in the fourth quarter. Marshall Wace LLP now owns 42,460 shares of the construction company’s stock valued at $4,142,000 after acquiring an additional 37,060 shares during the last quarter. Towle & Co. grew its position in shares of Hovnanian Enterprises by 51.2% during the 4th 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 during the period. Empowered Funds LLC grew its position in shares of Hovnanian Enterprises by 46.5% during the 1st 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 period. Finally, State Street Corp increased its stake in shares of Hovnanian Enterprises by 8.6% during the 4th quarter. State Street Corp now owns 228,613 shares of the construction company’s stock worth $22,299,000 after purchasing an additional 18,086 shares during the last quarter. 65.40% of the stock is owned by hedge funds and other institutional investors.

Hovnanian Enterprises Trading Up 5.5%

The firm has a 50 day moving average of $109.02 and a 200 day moving average of $113.85. The firm has a market cap of $614.11 million, a PE ratio of 15.73 and a beta of 1.87. The company has a quick ratio of 0.43, a current ratio of 1.50 and a debt-to-equity ratio of 0.04.

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.