Hovnanian Enterprises (NYSE:HOV) Shares Gap Down on Disappointing Earnings

Hovnanian Enterprises, Inc. (NYSE:HOV) shares gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $109.85, but opened at $106.65. Hovnanian Enterprises shares last traded at $109.97, with a volume of 3,457 shares traded.

The construction company reported $2.43 earnings per share for the quarter, missing the consensus estimate of $2.45 by ($0.02). Hovnanian Enterprises had a net margin of 8.05% and a return on equity of 43.47%. The firm had revenue of $686.47 million during the quarter, compared to analysts’ expectations of $733.20 million. Hovnanian Enterprises’s quarterly revenue was down 3.1% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Zelman & Associates reissued an “underperform” rating on shares of Hovnanian Enterprises in a research note on Wednesday, February 12th. Wedbush reissued a “neutral” rating and set a $120.00 target price on shares of Hovnanian Enterprises in a research note on Tuesday. Finally, StockNews.com downgraded Hovnanian Enterprises from a “hold” rating to a “sell” rating in a research note on Tuesday, March 18th.

Hedge Funds Weigh In On Hovnanian Enterprises

A number of large investors have recently modified their holdings of the business. Quantbot Technologies LP purchased a new position in Hovnanian Enterprises in the 4th quarter valued at approximately $25,000. Creative Financial Designs Inc. ADV purchased a new position in Hovnanian Enterprises in the 1st quarter valued at approximately $80,000. KLP Kapitalforvaltning AS purchased a new position in Hovnanian Enterprises in the 4th quarter valued at approximately $120,000. Harbor Capital Advisors Inc. increased its stake in Hovnanian Enterprises by 1,655.2% in the 1st quarter. Harbor Capital Advisors Inc. now owns 1,018 shares of the construction company’s stock valued at $107,000 after purchasing an additional 960 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank purchased a new position in Hovnanian Enterprises in the 1st quarter valued at approximately $109,000. 65.40% of the stock is owned by hedge funds and other institutional investors.

Hovnanian Enterprises Stock Down 12.5%

The firm has a 50 day moving average of $101.12 and a two-hundred day moving average of $128.57. The stock has a market capitalization of $569.21 million, a PE ratio of 2.99 and a beta of 2.28. The company has a current ratio of 1.52, a quick ratio of 0.34 and a debt-to-equity ratio of 0.14.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc, through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States. It offers single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes with amenities, such as clubhouses, swimming pools, tennis courts, tot lots, and open areas.