Hovnanian Enterprises (HOV) Trading Down 6% Following Weak Earnings

Hovnanian Enterprises (NYSE:HOV) was down 6% during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $1.80 and last traded at $1.89. Approximately 1,062,410 shares were traded during mid-day trading, a decline of 43% from the average daily volume of 1,858,813 shares. The stock had previously closed at $2.01.

The construction company reported ($0.07) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.02). Hovnanian Enterprises had a negative return on equity of 1.29% and a negative net margin of 15.66%. The company had revenue of $502.50 million during the quarter, compared to the consensus estimate of $511.10 million. During the same quarter in the prior year, the business earned ($0.05) EPS. The firm’s revenue for the quarter was down 14.2% compared to the same quarter last year.

Separately, ValuEngine downgraded Hovnanian Enterprises from a “buy” rating to a “hold” rating in a research report on Wednesday, May 2nd.

Several institutional investors and hedge funds have recently modified their holdings of HOV. Schwab Charles Investment Management Inc. boosted its position in shares of Hovnanian Enterprises by 26.8% during the 4th quarter. Schwab Charles Investment Management Inc. now owns 573,274 shares of the construction company’s stock valued at $1,921,000 after acquiring an additional 121,064 shares during the last quarter. Teacher Retirement System of Texas purchased a new position in shares of Hovnanian Enterprises during the 4th quarter valued at about $136,000. Tricadia Capital Management LLC purchased a new position in shares of Hovnanian Enterprises during the 4th quarter valued at about $1,351,000. Wells Fargo & Company MN raised its holdings in shares of Hovnanian Enterprises by 186.6% during the 4th quarter. Wells Fargo & Company MN now owns 543,106 shares of the construction company’s stock valued at $1,819,000 after buying an additional 353,587 shares in the last quarter. Finally, Virtu Financial LLC raised its holdings in shares of Hovnanian Enterprises by 179.1% during the 4th quarter. Virtu Financial LLC now owns 472,528 shares of the construction company’s stock valued at $1,583,000 after buying an additional 303,217 shares in the last quarter. Hedge funds and other institutional investors own 41.27% of the company’s stock.

The company has a current ratio of 0.79, a quick ratio of 0.25 and a debt-to-equity ratio of -0.10.

About Hovnanian Enterprises

Hovnanian Enterprises, Inc designs, constructs, markets, and sells residential homes in the United States. It constructs single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes. The company markets its build homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters in 130 communities in 24 markets.

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