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

Hovnanian Enterprises, Inc. (NYSE:HOV) 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.

The construction company reported $2.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.45 by ($0.02). The business had revenue of $686.47 million for the quarter, compared to analyst estimates of $733.20 million. Hovnanian Enterprises had a return on equity of 43.47% and a net margin of 8.05%. Hovnanian Enterprises’s revenue for the quarter was down 3.1% compared to the same quarter last year.

Wall Street Analyst Weigh In

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Quantbot Technologies LP acquired a new position in Hovnanian Enterprises during the 4th quarter worth $25,000. Creative Financial Designs Inc. ADV acquired a new position in shares of Hovnanian Enterprises during the 1st quarter worth about $80,000. KLP Kapitalforvaltning AS acquired a new position in shares of Hovnanian Enterprises during the 4th quarter worth about $120,000. Harbor Capital Advisors Inc. boosted its position in shares of Hovnanian Enterprises by 1,655.2% during the 1st quarter. Harbor Capital Advisors Inc. now owns 1,018 shares of the construction company’s stock worth $107,000 after acquiring an additional 960 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank acquired a new position in shares of Hovnanian Enterprises during the 1st quarter worth about $109,000. 65.40% of the stock is owned by institutional investors and hedge funds.

Hovnanian Enterprises Trading Down 12.5%

The company has a 50-day moving average price of $101.12 and a 200-day moving average price of $128.57. The firm has a market capitalization of $569.21 million, a price-to-earnings ratio of 2.99 and a beta of 2.28. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.34 and a current ratio of 1.52.

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.