Why Hovnanian Stock Just Dropped 10%
One day after shares of homebuilder Hovnanian Enterprises, Inc. (NYSE: HOV) stock surged 11% in response to an earnings report that showed rising gross margins and (by one metric at least) increasing market penetration, Hovnanian stock is heading the other way Friday morning. Earlier today, the stock was down more than 10%. As of 10:55 a.m. EST, Hovnanian stock was spotted down 8.7% and falling once again.
You can thank the analysts at MKM Partners for that. This morning, MKM railed against the rally in Hovnanian stock, warning that investors are pricing in "unrealistic" expectations for growth and according Hovnanian stock too high a valuation. MKM cut its own rating on Hovnanian stock to "sell" in response -- and investors appear to be taking that advice today.
Investors are boarding up Hovnanian stock today and walking away. Image source: Getty Images.
Source: Fool.com
