Hovnanian Enterprises (NYSE:HOV) Shares Up 4.8% – Should You Buy?

Shares of Hovnanian Enterprises Inc (NYSE:HOV) traded up 4.8% during mid-day trading on Friday . The company traded as high as $128.47 and last traded at $128.1550. 1,988 shares changed hands during mid-day trading, a decline of 98% from the average daily volume of 113,120 shares. The stock had previously closed at $122.29.

Wall Street Analysts Forecast Growth

HOV has been the subject of several research analyst reports. Weiss Ratings downgraded Hovnanian Enterprises from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, May 8th. Citizens Jmp started coverage on Hovnanian Enterprises in a report on Thursday, April 9th. They set a “market underperform” rating and a $74.00 price target for the company. Three investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $97.00.

Hovnanian Enterprises Price Performance

The company has a market cap of $762.09 million, a price-to-earnings ratio of 35.62 and a beta of 1.81. The company has a current ratio of 1.50, a quick ratio of 0.40 and a debt-to-equity ratio of 0.05. The company has a fifty day moving average price of $117.37 and a two-hundred day moving average price of $115.38.

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

Insider Activity at Hovnanian Enterprises

In other news, Director J Larry Sorsby sold 1,032 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $142.57, for a total value of $147,132.24. Following the completion of the sale, the director directly owned 187,416 shares of the company’s stock, valued at $26,719,899.12. This trade represents a 0.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, 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 SEC filing for this sale provides additional information. 22.67% of the stock is owned by insiders.

Hedge Funds Weigh In On Hovnanian Enterprises

Hedge funds have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. lifted its stake in Hovnanian Enterprises by 72.1% in the 2nd quarter. Osaic Holdings Inc. now owns 432 shares of the construction company’s stock valued at $45,000 after purchasing an additional 181 shares during the last quarter. Tower Research Capital LLC TRC raised its holdings in shares of Hovnanian Enterprises by 614.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 557 shares of the construction company’s stock worth $58,000 after acquiring an additional 479 shares during the last quarter. State of Wyoming bought a new stake in shares of Hovnanian Enterprises in the 1st quarter worth $62,000. International Assets Investment Management LLC purchased a new stake in Hovnanian Enterprises in the 4th quarter valued at about $117,000. Finally, Harbor Capital Advisors Inc. boosted its stake in shares of Hovnanian Enterprises by 38.1% in the 4th quarter. Harbor Capital Advisors Inc. now owns 1,369 shares of the construction company’s stock worth $134,000 after buying an additional 378 shares during the last quarter. Institutional investors 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.