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

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

Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.

Hovnanian Enterprises Inc (NYSE: HOV) had its Market Underperform rating reiterated by equities researchers at JMP Securities in a research note to investors. With a rating of Market Underperform on the shares, the company has a 52-week high of $2.96. The one-year price target of $1.88 is less than the opening price of $2.60, that has caused a fair amount of other analysts to issue statements on the stock recently. Usually, after analysts publish a “reiterated rating” report on a stock, they will later issue recurring revisions, usually followed by a price target change.

Shares of Hovnanian Enterprises Inc (NYSE: HOV) opened at $2.60 yesterday and traded in a range between, $2.50 and $2.63, and last traded at $2.53, which is a decrease of $0.19 over the previous closing price.

Hovnanian Enterprises Inc (NYSE: HOV) now has a market cap of 372.16M.

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

905,158 shares crossed the trading desk yesterday, 1 percent lower than the average, out of a total float 122,524,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to identify heavy volume accumulation or distribution 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 commonly refers to 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. Thus, watching their interests is a good way to ensure you are buying the right stocks.

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 identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

With that in mind, Hovnanian Enterprises Inc (NYSE: HOV) now has a 50-day MA of $2.55 and 200-day MA of $1.92. It has traded in a 52-week range between $1.19 – 2.9600 and today’s last price is 14.64%% lower than the 52 week high of $2.96.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have increased their earnings by at least 25% for a 3 year period.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.

Leave a Reply

Your email address will not be published. Required fields are marked *