Howard Hughes (NYSE:HHH) Trading Down 7% After Earnings Miss

Shares of Howard Hughes Holdings Inc. (NYSE:HHH) dropped 7% during trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $76.27 and last traded at $76.4930. Approximately 386,501 shares changed hands during mid-day trading, an increase of 15% from the average daily volume of 335,244 shares. The stock had previously closed at $82.25.

The company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.31 by ($0.21). The firm had revenue of $624.45 million during the quarter. Howard Hughes had a net margin of 8.40% and a return on equity of 5.57%. Howard Hughes’s quarterly revenue was down 36.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $3.25 EPS.

Key Stories Impacting Howard Hughes

Here are the key news stories impacting Howard Hughes this week:

• Positive Sentiment: Small new investor stake noted — a reported $11 million investor entry was highlighted as a vote of confidence by some commentators, which could provide modest support for the stock. Howard Hughes Just Got a New $11 Million Investor
• Neutral Sentiment: Company published its press release, slide deck and full earnings call/transcript and presentation — useful for investors wanting detail on segment performance and management commentary. Press Release & Investor Materials
• Neutral Sentiment: Several outlets posted full earnings call transcripts and presentations — useful context but not market-moving by itself. Earnings Call Transcript (Seeking Alpha) Earnings Transcript (Yahoo) Earnings Presentation
• Negative Sentiment: Big EPS miss: Reported Q4 EPS of $0.10 vs. consensus ~$0.31 — the miss was the primary headline driver and triggered the sell-off. Zacks: Lags Q4 Estimates
• Negative Sentiment: Revenue fell sharply year-over-year (reported $624.45M, down ~36.5% YoY) — the combination of lower top-line and the EPS miss raises questions about near-term growth and margins. Q4 & Full-Year Results
• Negative Sentiment: Analyst and news coverage emphasize the miss and weaker metrics versus estimates, amplifying negative sentiment; consensus long-run EPS estimates remain materially higher than the quarter’s result, leaving room for downward forecast revisions. Zacks: Key Metrics vs Estimates

Analyst Upgrades and Downgrades

HHH has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Howard Hughes from a “sell” rating to a “hold” rating in a research report on Saturday, November 15th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Howard Hughes in a research note on Monday, December 29th. Finally, Zacks Research cut Howard Hughes from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 28th. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $83.33.

Insider Activity at Howard Hughes

In other Howard Hughes news, Director R Scot Sellers purchased 5,000 shares of the stock in a transaction dated Tuesday, December 23rd. The stock was acquired at an average cost of $77.94 per share, for a total transaction of $389,700.00. Following the acquisition, the director owned 67,517 shares in the company, valued at $5,262,274.98. This trade represents a 8.00% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mary Ann Tighe sold 6,000 shares of the firm’s stock in a transaction dated Wednesday, November 26th. The stock was sold at an average price of $88.83, for a total value of $532,980.00. Following the sale, the director directly owned 13,495 shares of the company’s stock, valued at $1,198,760.85. The trade was a 30.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 48.00% of the company’s stock.

Institutional Trading of Howard Hughes

Hedge funds have recently modified their holdings of the stock. Mcguire Capital Advisors Inc. acquired a new stake in Howard Hughes in the 4th quarter valued at about $171,000. Compound Planning Inc. purchased a new position in Howard Hughes in the fourth quarter worth approximately $200,000. Invesco Ltd. lifted its stake in Howard Hughes by 1.2% in the fourth quarter. Invesco Ltd. now owns 75,921 shares of the company’s stock worth $6,056,000 after acquiring an additional 936 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in Howard Hughes by 11.2% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 6,145 shares of the company’s stock worth $490,000 after acquiring an additional 618 shares in the last quarter. Finally, JCP Investment Management LLC increased its position in shares of Howard Hughes by 1,711.0% in the 4th quarter. JCP Investment Management LLC now owns 181,100 shares of the company’s stock valued at $14,446,000 after purchasing an additional 171,100 shares during the last quarter. 93.83% of the stock is currently owned by institutional investors and hedge funds.

Howard Hughes Price Performance

The firm has a market capitalization of $4.41 billion, a price-to-earnings ratio of 35.21 and a beta of 1.24. The stock’s fifty day moving average price is $81.32 and its two-hundred day moving average price is $80.92. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 1.80.

About Howard Hughes

Howard Hughes Holdings Inc, together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona.