Hovnanian Enterprises Inc (HOV) stock slides, “Market Underperform” rating reiterated by JMP Securities Analysts

Hovnanian Enterprises Inc (NYSE: HOV) shares fell on Friday January 13 on heavier trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.

Meanwhile, The Dow Jones Industrial Average DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.

U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.

The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.

Stock Picks and Investing in the Stock Market

JMP Securities analysts reiterated its Market Underperform rating on Hovnanian Enterprises Inc (NYSE: HOV) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Market Underperform on the stock, Hovnanian Enterprises Inc has a 52-week high of $2.96. The one-year price target of $1.78 is a decrease compared to the opening price of $2.44, resulting a number of other analysts to report on the company recently. Stock prices sometimes get a boost to the upside when analysts reiterate coverage.

Yesterday Hovnanian Enterprises Inc (NYSE: HOV) shares last traded at $2.28, which is a dip of $0.17 compared to the previous closing price. Opening at $2.44, they varied from $2.26 and $2.50 throughout the day.

Hovnanian Enterprises Inc (NYSE: HOV) now has a market cap of 335.84M.

Hovnanian Enterprises Inc (NYSE: HOV) Average Daily Trading Volume

3,793,742 shares crossed the trading desk yesterday, 80 percent above normal, out of a total float 122,524,000. higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.

However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts researching thousands of stocks, so it is good corroboration to see them buying a stock you are researching.

Hovnanian Enterprises Inc (NYSE: HOV) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.

With that in mind, Hovnanian Enterprises Inc (NYSE: HOV) now has a 50-day MA of $2.55 and 200-day MA of $1.93. It has traded in a 52-week range between $1.19 – 2.96 and today’s last price is 22.97%% lower than the 52 week high of $2.96.

Earnings growth is a critical factor to research when investing in stocks and investors identify companies that have raised their earnings at least 25% or more for the past 3 years.

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