Is Hovnanian Enterprises, Inc. (HOV) A Good Stock to Own?

Consequently, key money managers were breaking ground themselves. Radix Partners established the biggest position in Hovnanian Enterprises, Inc. (NYSE:HOV). Radix Partners had $0.4 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.2 million investment in the stock during the quarter. The only other fund with a new position in the stock was Millennium Management, one of the 10 largest hedge funds in the world.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Hovnanian Enterprises, Inc. (NYSE:HOV) but similarly valued. These stocks are Trinity Place Holdings Inc. (NYSE:TPHS), BankFinancial Corporation (NASDAQ:BFIN), Capital City Bank Group, Inc. (NASDAQ:CCBG), and Regional Management Corp (NYSE:RM). This group of stocks’ market valuations resemble HOV’s market valuation.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $44 million. That figure was $13 million in HOV’s case. Regional Management Corp (NYSE:RM) is the most popular stock in this table. On the other hand Capital City Bank Group, Inc. (NASDAQ:CCBG) is the least popular one with only 3 bullish hedge fund positions. Hovnanian Enterprises, Inc. (NYSE:HOV) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RM might be a better candidate to consider taking a long position in.

Disclosure: None