BlackRock Inc. Makes New $2 Billion Investment in NVR, Inc. $NVR

Key Points

• BlackRock acquired 294,174 NVR shares worth approximately $2.0 billion, giving it an estimated 10.9% stake. Institutional investors collectively own 83.67% of the homebuilder.
• NVR reported quarterly revenue of $2.34 billion, below expectations, while revenue declined 10.5% year over year. The company posted a 12.26% net margin and 31.02% return on equity.
• Analysts have a consensus “Hold” rating and an average price target of $7,224.20, compared with shares opening at $6,415.36; recent targets range from $6,400 to $7,446.

BlackRock Inc. bought a new stake in shares of NVR, Inc. (NYSE:NVR - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 294,174 shares of the construction company's stock, valued at approximately $2,004,324,000. BlackRock Inc. owned approximately 10.90% of NVR as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in the company. Clearstead Trust LLC bought a new position in shares of NVR during the 2nd quarter worth $27,000. DV Equities LLC bought a new stake in shares of NVR in the fourth quarter valued at about $29,000. Strive Financial Group LLC purchased a new stake in NVR in the fourth quarter worth about $29,000. Trust Co. of Vermont purchased a new stake in NVR in the second quarter worth about $34,000. Finally, Oakworth Capital Inc. bought a new position in NVR during the 4th quarter worth about $36,000. 83.67% of the stock is currently owned by hedge funds and other institutional investors.

NVR Stock Up 2.7%

Shares of NVR stock opened at $6,415.36 on Thursday. The firm's 50 day moving average price is $6,452.70 and its 200-day moving average price is $6,626.78. The company has a quick ratio of 2.24, a current ratio of 5.28 and a debt-to-equity ratio of 0.27. NVR, Inc. has a 52-week low of $5,501.01 and a 52-week high of $8,618.28. The company has a market cap of $17.06 billion, a P/E ratio of 16.64, a PEG ratio of 10.45 and a beta of 0.91.

NVR (NYSE:NVR - Get Free Report) last posted its earnings results on Thursday, July 23rd. The construction company reported $83.96 EPS for the quarter, beating analysts' consensus estimates of $0.90 by $83.06. The company had revenue of $2.34 billion during the quarter, compared to analysts' expectations of $2.40 billion. NVR had a net margin of 12.26% and a return on equity of 31.02%. NVR's revenue for the quarter was down 10.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $108.54 earnings per share. On average, sell-side analysts predict that NVR, Inc. will post 366.98 EPS for the current fiscal year.

Insider Activity at NVR

In other NVR news, Director George Oliver acquired 63 shares of the firm's stock in a transaction dated Friday, August 7th. The stock was purchased at an average price of $6,431.51 per share, for a total transaction of $405,185.13. Following the acquisition, the director owned 63 shares in the company, valued at approximately $405,185.13. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 8.60% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently issued reports on NVR. Truist Financial dropped their price objective 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. Zelman & Associates upgraded NVR from a "hold" rating to a "buy" rating in a report on Tuesday, July 7th. Wall Street Zen raised NVR from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Bank of America cut their price target on NVR from $7,600.00 to $7,200.00 and set a "buy" rating on the stock in a report on Monday, July 20th. Finally, BTIG Research set a $7,446.00 price target on NVR in a research report on Friday, July 24th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $7,224.20.

NVR Profile

NVR, Inc is a U.S.-based homebuilding and mortgage banking company that designs, constructs and sells single-family detached homes, townhomes and condominiums. The company operates primarily through its homebuilding business and a mortgage banking subsidiary, providing financing and related closing services to its homebuyers. NVR's homebuilding activities include land development, community planning, model home sales and construction management aimed at a range of buyer demographics.

Its homes are marketed under recognizable regional brands, including Ryan Homes and NVHomes, along with other market-specific trade names, and are offered across multiple geographic markets in the United States.

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