NVR (NYSE:NVR) Stock Gets Downgrade from Bank of America

Key Points

• Bank of America downgraded NVR from “buy” to “underperform” and set a $5,900 price target, implying approximately 3.32% downside from the reported share price.
• NVR’s latest quarterly results missed expectations: EPS was $89.45 versus a $102.77 consensus estimate, while revenue of $2.42 billion fell short of $2.57 billion and declined 8.2% year over year.
• Analyst sentiment is cautious, with NVR carrying an average “Reduce” rating and a $6,593 consensus price target; three analysts rate it a sell, three a hold and two a buy.

NVR (NYSE:NVR - Get Free Report) was downgraded by equities researchers at Bank of America from a "buy" rating to an "underperform" rating in a research note issued to investors on Friday, Briefing.com reports. They currently have a $5,900.00 price target on the construction company's stock. Bank of America's price target suggests a potential downside of 3.32% from the company's current price.

NVR has been the topic of several other reports. Wall Street Zen downgraded shares of NVR from a "hold" rating to a "sell" rating in a research report on Saturday, October 3rd. BTIG Research set a $7,125.00 target price on shares of NVR in a research note on Tuesday, September 22nd. Zelman & Associates upgraded shares of NVR from a "hold" rating to a "buy" rating in a research report on Tuesday, July 7th. Truist Financial dropped their price target on shares of NVR from $6,600.00 to $6,400.00 and set a "hold" rating on the stock in a research note on Friday, July 24th. Finally, Weiss Ratings upgraded shares of NVR from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, NVR currently has an average rating of "Reduce" and a consensus price target of $6,593.00.

NVR Stock Performance

NVR stock opened at $6,102.54 on Friday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 2.24 and a current ratio of 5.28. The stock has a market capitalization of $16.23 billion, a price-to-earnings ratio of 15.83 and a beta of 0.90. NVR has a 1 year low of $5,501.01 and a 1 year high of $8,200.00. The stock's fifty day moving average is $6,171.27 and its two-hundred day moving average is $6,305.19.

NVR (NYSE:NVR - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The construction company reported $89.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $102.77 by ($13.32). The firm had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.57 billion. NVR had a net margin of 12.26% and a return on equity of 31.02%. The business's revenue was down 8.2% compared to the same quarter last year. During the same period last year, the firm posted $112.33 EPS. On average, research analysts predict that NVR will post 361.98 EPS for the current year.

Insider Activity

In other NVR news, Director George Oliver purchased 63 shares of the stock in a transaction dated Friday, August 7th. The shares were bought at an average cost of $6,431.51 per share, with a total value of $405,185.13. Following the completion of the acquisition, the director owned 63 shares of the company's stock, valued at approximately $405,185.13. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 8.60% of the company's stock.

Institutional Investors Weigh In On NVR

Institutional investors have recently bought and sold shares of the stock. MBL Wealth LLC grew its position in NVR by 232.4% in the 3rd quarter. MBL Wealth LLC now owns 113 shares of the construction company's stock valued at $695,000 after buying an additional 79 shares in the last quarter. Root Financial Partners LLC acquired a new position in NVR during the 3rd quarter valued at about $148,000. Obermeyer Wealth Partners increased its stake in NVR by 110.0% during the 3rd quarter. Obermeyer Wealth Partners now owns 126 shares of the construction company's stock valued at $775,000 after buying an additional 66 shares during the period. Crossmark Global Holdings Inc. raised its holdings in NVR by 12.9% during the third quarter. Crossmark Global Holdings Inc. now owns 35 shares of the construction company's stock worth $215,000 after purchasing an additional 4 shares in the last quarter. Finally, Nisa Investment Advisors LLC boosted its stake in NVR by 12.4% during the 3rd quarter. Nisa Investment Advisors LLC now owns 545 shares of the construction company's stock valued at $3,354,000 after purchasing an additional 60 shares in the last quarter. Institutional investors and hedge funds own 83.67% of the company's stock.

NVR News Roundup

Here are the key news stories impacting NVR this week:

• Positive Sentiment: Two NVR insiders reportedly purchased shares during the past six months, including purchases by George Oliver and Michael J. DeVito. While relatively small, insider buying can signal management confidence. NVR Releases Q3 2026 Earnings
• Positive Sentiment: Institutional ownership activity was mixed but included notable additions from AQR Capital Management, Goldman Sachs, BlackRock and JPMorgan, potentially providing some support for the stock. NVR Releases Q3 2026 Earnings
• Neutral Sentiment: NVR reported third-quarter net income of $248.6 million, or $89.45 per diluted share. Its net margin was 12.26% and return on equity was 31.02%, indicating the company remains profitable despite weaker operating results. NVR Announces Third Quarter Results
• Negative Sentiment: Third-quarter EPS of $89.45 missed analyst estimates ranging from approximately $102.77 to $106.11, while revenue of roughly $2.35 billion to $2.42 billion also fell short of expectations near $2.57 billion to $2.60 billion. NVR Q3 Earnings and Revenues Lag Estimates
• Negative Sentiment: EPS declined from $112.33 in the year-earlier quarter, and revenue fell 8.2% year over year. Reports attributed the pressure to a broader housing slowdown weighing on major U.S. homebuilders. Housing Slump Weighs on Major US Homebuilders

NVR Company Profile

NVR, Inc is a homebuilding and mortgage banking company headquartered in Reston, Virginia. Through its homebuilding operations, the company designs and constructs single-family detached homes, townhomes and condominiums for buyers in a range of residential markets.

NVR markets homes primarily under the Ryan Homes, NVHomes and Heartland Homes brands. Ryan Homes generally serves a broad range of buyers, while NVHomes focuses on higher-end communities. The company's homebuilding operations serve selected markets across the Mid-Atlantic, Midwest and Southeast regions of the United States.

Through NVR Mortgage, the company provides mortgage loan origination services to many of its homebuyers.

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