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

Hovnanian Enterprises Inc (NYSE:HOV)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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 traded.

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 company had revenue of $705.75 million for the quarter, compared to analyst estimates of $723.50 million. During the same period in the prior year, the company posted $1.99 EPS.

Analysts Set New Price Targets

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

Insider Transactions at Hovnanian Enterprises

In other news, Director J Larry Sorsby sold 1,032 shares of Hovnanian Enterprises stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $142.57, for a total value 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 transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Ara K. Hovnanian sold 12,880 shares of the business’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $125.78, for a total value of $1,620,046.40. The SEC filing for this sale provides additional information. 22.67% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Public Employees Retirement System of Ohio bought a new stake in shares of Hovnanian Enterprises in the second quarter valued at approximately $43,000. Globeflex Capital L P bought a new position in Hovnanian Enterprises during the second quarter worth $2,497,000. Assenagon Asset Management S.A. increased its position in Hovnanian Enterprises by 39.4% during the second quarter. Assenagon Asset Management S.A. now owns 20,451 shares of the construction company’s stock worth $2,912,000 after acquiring an additional 5,777 shares during the period. Empowered Funds LLC increased its position in Hovnanian Enterprises by 46.5% during 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 period. Finally, Quantinno Capital Management LP raised its stake in Hovnanian Enterprises by 62.4% during the 1st quarter. Quantinno Capital Management LP now owns 6,319 shares of the construction company’s stock valued at $701,000 after purchasing an additional 2,429 shares during the last quarter. 65.40% of the stock is owned by institutional investors.

Hovnanian Enterprises Trading Down 12.5%

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

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.