Hovnanian Enterprises (NYSE:HOV) Shares Climb 6% – Should You Buy?

Hovnanian Enterprises Inc (NYSE:HOV)’s stock price traded up 6% on Thursday. The company traded as high as $95.06 and last traded at $97.7620. Approximately 18,581 shares changed hands during trading, a decline of 84% from the average daily volume of 118,732 shares. The stock had previously closed at $92.20.

Wall Street Analysts Forecast Growth

HOV has been the subject of several research analyst reports. Weiss Ratings cut Hovnanian Enterprises from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, August 31st. Citigroup restated a “market underperform” rating on shares of Hovnanian Enterprises in a research report on Friday, August 21st. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus target price of $74.00.

Hovnanian Enterprises Stock Performance

The company has a market capitalization of $602.26 million, a PE ratio of 106.37 and a beta of 1.82. The company has a current ratio of 1.46, a quick ratio of 0.36 and a debt-to-equity ratio of 0.05. The firm’s 50-day simple moving average is $115.97 and its 200-day simple moving average is $118.88.

Hovnanian Enterprises (NYSE:HOV) last announced its quarterly earnings results on Thursday, August 20th. The construction company reported ($0.70) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.56) by ($0.14). The firm had revenue of $705.75 million during the quarter, compared to analysts’ expectations of $723.50 million. Hovnanian Enterprises had a net margin of 0.64% and a return on equity of 8.64%. During the same quarter in the previous year, the firm posted $1.99 EPS.

Institutional Trading of Hovnanian Enterprises

Several institutional investors and hedge funds have recently made changes to their positions in HOV. Empowered Funds LLC lifted its position in shares of Hovnanian Enterprises by 46.5% in the 1st quarter. Empowered Funds LLC now owns 73,146 shares of the construction company’s stock worth $8,113,000 after purchasing an additional 23,234 shares during the period. Sei Investments Co. boosted its stake 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 valued at $3,914,000 after purchasing an additional 17,811 shares in the last quarter. Globeflex Capital L P purchased a new position in Hovnanian Enterprises during the second quarter valued at approximately $2,497,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Hovnanian Enterprises during the second quarter valued at approximately $1,225,000. Finally, Engineers Gate Manager LP purchased a new position in Hovnanian Enterprises during the second quarter valued at approximately $986,000. 65.40% of the stock is currently owned by institutional investors.

Hovnanian Enterprises Company Profile

Hovnanian Enterprises, Inc is a residential homebuilder that designs, constructs and sells single-family homes, townhomes and condominiums. The company markets homes under the K. Hovnanian’s brand and develops communities for a range of buyers, including first-time, move-up and active-adult purchasers.

Through its K. Hovnanian’s Four Seasons business, the company also develops age-qualified communities featuring amenities and home designs intended for active-adult lifestyles. Its communities generally include planned features such as clubhouses, recreational facilities and other neighborhood amenities.

Founded in 1959 by Kevork S.