Hovnanian Enterprises (NYSE:HOV) Sees Unusually-High Trading Volume – Here’s Why

Shares of Hovnanian Enterprises Inc (NYSE:HOV) saw strong trading volume on Monday . Approximately 49,278 shares changed hands during trading, a decline of 59% from the previous session’s volume of 119,006 shares.The stock last traded at $127.5030 and had previously closed at $129.77.

Analyst Ratings Changes

A number of research firms have commented on HOV. Citigroup reissued a “market underperform” rating on shares of Hovnanian Enterprises in a report on Friday, August 21st. Weiss Ratings downgraded Hovnanian Enterprises from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday. Two equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Hovnanian Enterprises has a consensus rating of “Reduce” and an average target price of $74.00.

Hovnanian Enterprises Price Performance

The firm has a 50 day moving average of $131.66 and a 200-day moving average of $120.02. The company has a current ratio of 1.46, a quick ratio of 0.40 and a debt-to-equity ratio of 0.05. The company has a market cap of $702.44 million, a P/E ratio of 126.18 and a beta of 1.83.

Hovnanian Enterprises (NYSE:HOV) last released its quarterly earnings data 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). Hovnanian Enterprises had a return on equity of 8.64% and a net margin of 0.64%.The firm had revenue of $705.75 million during the quarter, compared to the consensus estimate of $723.50 million. During the same period in the previous year, the firm earned $1.99 EPS.

Insider Buying and Selling at Hovnanian Enterprises

In related news, Director J Larry Sorsby sold 1,032 shares of the stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $142.57, for a total value of $147,132.24. Following the completion of the transaction, the director directly owned 187,416 shares of the company’s stock, valued at $26,719,899.12. This trade represents a 0.55% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Ara K. Hovnanian sold 12,880 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $125.78, for a total transaction of $1,620,046.40. The SEC filing for this sale provides additional information. Company insiders own 22.67% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Hovnanian Enterprises during the second quarter worth about $1,225,000. California State Teachers Retirement System increased its holdings in shares of Hovnanian Enterprises by 23,681.0% in the second quarter. California State Teachers Retirement System now owns 711,765 shares of the construction company’s stock valued at $101,362,000 after purchasing an additional 708,772 shares during the period. Public Employees Retirement System of Ohio acquired a new position in shares of Hovnanian Enterprises in the second quarter valued at approximately $43,000. Globeflex Capital L P purchased a new stake in shares of Hovnanian Enterprises during the second quarter worth approximately $2,497,000. Finally, Assenagon Asset Management S.A. lifted its holdings in shares of 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 purchasing an additional 5,777 shares during the period. Institutional investors and hedge funds own 65.40% of the company’s stock.

About Hovnanian Enterprises

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.