NEW YORK (TheStreet) -- Hovnanian Enterprises  (HOV - Get Report)  stock remained unchanged at $1.36 at the close of Wednesday's trading session despite bearish housing starts data released by the Commerce Department earlier today.

For the month of December, home-building in the U.S. unexpectedly dropped.

Residential starts fell 2.5% from a month earlier to a seasonally adjusted annual rate of 1.15 million. 

Aanalysts had expected an increase to 1.2 million, according to Bloomberg.

Additionally, permits slumped 3.9% to 1.23 million in December due to fewer applications for multifamily projects, a sign that the housing industry lost some momentum heading into the new year. 

Based in Red Bank, NJ, Hovnanian Enterprises designs, constructs, markets, and sells residential homes in the U.S. 

TheStreet Ratings currently has a Sell rating on the stock with a letter grade of D+. 

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: HOV

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