Capital Research Global Investors Grows Holdings in NVR, Inc. $NVR

Key Points

• Capital Research Global Investors slightly increased its NVR stake in the fourth quarter, owning 133,554 shares valued at about $974 million after buying 551 additional shares.
• NVR reported weaker-than-expected quarterly results, with EPS of $67.76 and revenue of $1.91 billion, both below analyst estimates, while revenue fell 21.7% year over year.
• The company also authorized a $750 million stock buyback, and analysts currently rate the stock a consensus Hold with an average price target of $7,649.33.

Capital Research Global Investors grew its holdings in shares of NVR, Inc. (NYSE:NVR - Free Report) by 0.4% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 133,554 shares of the construction company's stock after buying an additional 551 shares during the quarter. Capital Research Global Investors owned 4.70% of NVR worth $973,979,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Murphy Middleton Hinkle & Parker Inc. purchased a new position in shares of NVR during the 4th quarter valued at approximately $11,610,000. Alberta Investment Management Corp purchased a new position in shares of NVR during the 3rd quarter valued at approximately $4,017,000. American Century Companies Inc. boosted its stake in shares of NVR by 17.0% during the 3rd quarter. American Century Companies Inc. now owns 6,370 shares of the construction company's stock valued at $51,181,000 after buying an additional 925 shares during the last quarter. SG Americas Securities LLC boosted its stake in shares of NVR by 669.5% during the 4th quarter. SG Americas Securities LLC now owns 4,232 shares of the construction company's stock valued at $30,863,000 after buying an additional 3,682 shares during the last quarter. Finally, Marshfield Associates boosted its stake in shares of NVR by 4.7% during the 3rd quarter. Marshfield Associates now owns 25,042 shares of the construction company's stock valued at $201,204,000 after buying an additional 1,130 shares during the last quarter. 83.67% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, Director Michael J. Devito bought 11 shares of the company's stock in a transaction on Friday, April 24th. The shares were purchased at an average cost of $6,699.50 per share, with a total value of $73,694.50. Following the completion of the transaction, the director directly owned 25 shares of the company's stock, valued at approximately $167,487.50. This represents a 78.57% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. 8.60% of the stock is owned by corporate insiders.

NVR Stock Performance

NVR stock opened at $6,195.06 on Friday. The company has a current ratio of 5.19, a quick ratio of 2.67 and a debt-to-equity ratio of 0.26. The firm has a market cap of $16.73 billion, a P/E ratio of 15.10, a P/E/G ratio of 4.55 and a beta of 0.93. NVR, Inc. has a 12-month low of $5,501.01 and a 12-month high of $8,618.28. The stock's 50 day simple moving average is $6,331.98 and its 200 day simple moving average is $7,009.27.

NVR (NYSE:NVR - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The construction company reported $67.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $79.97 by ($12.21). The firm had revenue of $1.91 billion for the quarter, compared to analyst estimates of $2.09 billion. NVR had a net margin of 12.93% and a return on equity of 32.66%. The business's revenue was down 21.7% on a year-over-year basis. During the same period in the prior year, the company posted $94.83 earnings per share. As a group, equities research analysts predict that NVR, Inc. will post 375.15 EPS for the current year.

NVR announced that its Board of Directors has authorized a stock buyback program on Wednesday, February 11th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the construction company to repurchase up to 3.3% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Truist Financial reduced their target price on NVR from $7,100.00 to $6,600.00 and set a "hold" rating for the company in a research note on Thursday, April 23rd. Bank of America dropped their price target on NVR from $8,600.00 to $8,225.00 and set a "buy" rating on the stock in a research report on Monday, April 20th. UBS Group dropped their price target on NVR from $8,100.00 to $7,700.00 and set a "neutral" rating on the stock in a research report on Thursday, April 23rd. BTIG Research reissued a "buy" rating and set a $8,096.00 price target on shares of NVR in a research report on Wednesday, April 22nd. Finally, Wall Street Zen raised NVR from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $7,649.33.

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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