Hovnanian Enterprises (NYSE:HOV) Trading 7.9% Higher Following Strong Earnings

Hovnanian Enterprises Inc (NYSE:HOV)’s share price shot up 7.9% on Thursday following a stronger than expected earnings report. The company traded as high as $106.01 and last traded at $105.7980. 20,531 shares traded hands during trading, a decline of 81% from the average session volume of 106,545 shares. The stock had previously closed at $98.01.

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

Analysts Set New Price Targets

A number of brokerages have recently issued reports on HOV. Wall Street Zen upgraded Hovnanian Enterprises from a “sell” rating to a “hold” rating in a research report on Saturday, February 28th. Citizens Jmp assumed coverage on Hovnanian Enterprises in a report on Thursday, April 9th. They issued a “market underperform” rating and a $74.00 target price on the stock. Finally, Weiss Ratings lowered shares of Hovnanian Enterprises from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, May 8th. Three analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $97.00.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. State of Alaska Department of Revenue bought a new stake in shares of Hovnanian Enterprises during the 3rd quarter valued at about $35,000. Osaic Holdings Inc. grew its stake in Hovnanian Enterprises by 72.1% during the second quarter. Osaic Holdings Inc. now owns 432 shares of the construction company’s stock worth $45,000 after purchasing an additional 181 shares during the period. Tower Research Capital LLC TRC increased its holdings in Hovnanian Enterprises by 614.1% in the second quarter. Tower Research Capital LLC TRC now owns 557 shares of the construction company’s stock worth $58,000 after purchasing an additional 479 shares in the last quarter. State of Wyoming acquired a new position in Hovnanian Enterprises in the first quarter valued at approximately $62,000. Finally, International Assets Investment Management LLC acquired a new position in Hovnanian Enterprises in the fourth quarter valued at approximately $117,000. 65.40% of the stock is owned by institutional investors.

Hovnanian Enterprises Price Performance

The stock has a market capitalization of $614.11 million, a P/E ratio of 15.73 and a beta of 1.87. The business has a fifty day simple moving average of $109.02 and a 200-day simple moving average of $113.85. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.43 and a current ratio of 1.50.

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.