NVR (NYSE:NVR) Posts Quarterly Earnings Results, Misses Expectations By $13.32 EPS

Key Points

• NVR reported quarterly EPS of $89.45, missing the $102.77 consensus estimate by $13.32. The company posted a 12.26% net margin and 31.02% return on equity.
• Shares fell 0.3% to $5,883.54, with the stock trading below its 50-day and 200-day moving averages. NVR has a $15.65 billion market capitalization and a 52-week range of $5,501.01 to $8,200.00.
• Analyst sentiment weakened, with several firms cutting price targets and Morgan Stanley initiating coverage with an “underweight” rating and a $5,058 target. The consensus rating remains “Hold,” with an average price target of $6,809.67.

NVR (NYSE:NVR - Get Free Report) released its quarterly earnings data on Thursday. The construction company reported $89.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $102.77 by ($13.32), Zacks reports. NVR had a net margin of 12.26% and a return on equity of 31.02%.

NVR Trading Down 0.3%

NVR traded down $16.46 during midday trading on Thursday, hitting $5,883.54. 10,984 shares of the company were exchanged, compared to its average volume of 31,263. The firm's 50 day moving average price is $6,176.79 and its 200-day moving average price is $6,309.18. NVR has a 1-year low of $5,501.01 and a 1-year high of $8,200.00. The firm has a market capitalization of $15.65 billion, a P/E ratio of 15.28 and a beta of 0.90. The company has a quick ratio of 2.24, a current ratio of 5.28 and a debt-to-equity ratio of 0.27.

Analysts Set New Price Targets

Several equities research analysts recently commented on NVR shares. Wall Street Zen downgraded shares of NVR from a "hold" rating to a "sell" rating in a research report on Saturday, October 3rd. Zacks Research cut shares of NVR from a "hold" rating to a "strong sell" rating in a research report on Monday, September 21st. Truist Financial decreased their price target on shares of NVR from $6,600.00 to $6,400.00 and set a "hold" rating for the company in a research report on Friday, July 24th. UBS Group dropped their price target on shares of NVR from $7,700.00 to $7,400.00 and set a "neutral" rating for the company in a research note on Friday, July 24th. Finally, Morgan Stanley started coverage on shares of NVR in a report on Thursday, October 1st. They set an "underweight" rating and a $5,058.00 price target on the stock. Three investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, NVR has an average rating of "Hold" and a consensus target price of $6,809.67.

Insider Buying and Selling at NVR

In related news, Director George Oliver purchased 63 shares of the firm's stock in a transaction dated Friday, August 7th. The stock was bought at an average price of $6,431.51 per share, with a total value of $405,185.13. Following the completion of the purchase, the director owned 63 shares in the company, valued at approximately $405,185.13. This represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 8.60% of the company's stock.

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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