Wedbush Predicts Weaker Earnings for Hovnanian Enterprises

Hovnanian Enterprises Inc (NYSE:HOV) – Wedbush lowered their FY2025 earnings per share estimates for Hovnanian Enterprises in a research report issued on Wednesday, August 27th. Wedbush analyst J. Mccanless now forecasts that the construction company will post earnings of $8.66 per share for the year, down from their previous estimate of $12.04. Wedbush has a “Neutral” rating and a $120.00 price objective on the stock. Wedbush also issued estimates for Hovnanian Enterprises’ Q4 2025 earnings at $0.63 EPS, FY2026 earnings at $0.17 EPS and FY2027 earnings at $4.21 EPS.

Separately, Wall Street Zen downgraded Hovnanian Enterprises from a “hold” rating to a “sell” rating in a research report on Saturday. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $120.00.

Hovnanian Enterprises Price Performance

Shares of Hovnanian Enterprises stock opened at $136.22 on Monday. The stock’s 50-day simple moving average is $126.76 and its 200-day simple moving average is $110.12. Hovnanian Enterprises has a 52 week low of $81.15 and a 52 week high of $233.15. The company has a market capitalization of $806.42 million, a price-to-earnings ratio of 6.55 and a beta of 2.12. The company has a quick ratio of 0.28, a current ratio of 1.58 and a debt-to-equity ratio of 0.11.

Hovnanian Enterprises (NYSE:HOV) last released its quarterly earnings results on Thursday, August 21st. The construction company reported $1.99 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.51 by ($1.52). Hovnanian Enterprises had a net margin of 5.06% and a return on equity of 23.52%. The company had revenue of $800.58 million for the quarter, compared to the consensus estimate of $806.20 million. During the same period in the prior year, the firm posted $9.75 EPS. The business’s revenue for the quarter was up 10.8% on a year-over-year basis. Hovnanian Enterprises has set its Q4 2025 guidance at EPS.

Institutional Investors Weigh In On Hovnanian Enterprises

A number of hedge funds have recently made changes to their positions in the company. Tower Research Capital LLC TRC increased its stake in Hovnanian Enterprises by 614.1% during the second quarter. Tower Research Capital LLC TRC now owns 557 shares of the construction company’s stock worth $58,000 after acquiring an additional 479 shares during the last quarter. Creative Financial Designs Inc. ADV bought a new stake in Hovnanian Enterprises during the first quarter worth approximately $80,000. GAMMA Investing LLC increased its stake in Hovnanian Enterprises by 553.9% during the second quarter. GAMMA Investing LLC now owns 994 shares of the construction company’s stock worth $104,000 after acquiring an additional 842 shares during the last quarter. Harbor Capital Advisors Inc. increased its stake in Hovnanian Enterprises by 1,655.2% during the first 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 during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in Hovnanian Enterprises during the first quarter worth approximately $109,000. 65.40% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Hovnanian Enterprises

In related news, Director Edward A. Kangas sold 5,500 shares of the business’s stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $107.12, for a total value of $589,160.00. Following the sale, the director directly owned 5,338 shares in the company, valued at approximately $571,806.56. The trade was a 50.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Ara K. Hovnanian sold 609 shares of the business’s stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $138.31, for a total value of $84,230.79. Following the completion of the sale, the chief executive officer owned 62,896 shares in the company, valued at $8,699,145.76. This represents a 0.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. 19.77% of the stock is currently owned by insiders.

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.