Diamond Hill Capital Management Inc. Has $221.91 Million Stake in NVR, Inc. $NVR

Key Points

• Diamond Hill Capital Management cut its NVR stake by 24.2% in the fourth quarter, but still held 30,429 shares valued at about $221.9 million.
• Analysts are cautious overall: NVR has a consensus “Hold” rating, with two Buy, four Hold, and one Sell ratings, and an average price target of $7,649.33.
• Recent results disappointed, as NVR missed both earnings and revenue estimates for the quarter and reported revenue down 21.7% year over year, even as the company authorized a $750 million share buyback.

Diamond Hill Capital Management Inc. lowered its position in NVR, Inc. (NYSE:NVR - Free Report) by 24.2% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund owned 30,429 shares of the construction company's stock after selling 9,689 shares during the period. Diamond Hill Capital Management Inc. owned 1.07% of NVR worth $221,912,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Drive Wealth Management LLC increased its holdings in NVR by 7.1% in the third quarter. Drive Wealth Management LLC now owns 30 shares of the construction company's stock worth $241,000 after buying an additional 2 shares during the last quarter. Deseret Mutual Benefit Administrators increased its holdings in NVR by 8.3% in the third quarter. Deseret Mutual Benefit Administrators now owns 26 shares of the construction company's stock worth $209,000 after buying an additional 2 shares during the last quarter. CI Investments Inc. increased its holdings in NVR by 13.3% in the third quarter. CI Investments Inc. now owns 17 shares of the construction company's stock worth $137,000 after buying an additional 2 shares during the last quarter. Castleview Partners LLC increased its holdings in NVR by 2.8% in the fourth quarter. Castleview Partners LLC now owns 74 shares of the construction company's stock worth $540,000 after buying an additional 2 shares during the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd increased its holdings in NVR by 0.5% in the fourth quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 425 shares of the construction company's stock worth $3,099,000 after buying an additional 2 shares during the last quarter. Institutional investors and hedge funds own 83.67% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts recently commented on NVR shares. BTIG Research restated a "buy" rating and issued a $8,096.00 price objective on shares of NVR in a report on Wednesday, April 22nd. Bank of America dropped their price objective on NVR from $8,600.00 to $8,225.00 and set a "buy" rating on the stock in a report on Monday, April 20th. Zelman & Associates upgraded NVR from a "sell" rating to a "hold" rating and set a $7,675.00 price objective on the stock in a report on Thursday, January 29th. Seaport Research Partners restated a "sell" rating and issued a $5,664.00 price objective on shares of NVR in a report on Tuesday, April 7th. Finally, Wall Street Zen upgraded NVR from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $7,649.33.

NVR Stock Up 0.9%

Shares of NVR stock opened at $6,046.36 on Friday. The stock has a market capitalization of $16.33 billion, a P/E ratio of 14.74, a PEG ratio of 4.41 and a beta of 0.95. The company has a quick ratio of 2.67, a current ratio of 5.19 and a debt-to-equity ratio of 0.26. The stock has a 50 day moving average price of $6,416.75 and a two-hundred day moving average price of $7,093.67. NVR, Inc. has a 12-month low of $5,501.01 and a 12-month high of $8,618.28.

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

NVR announced that its Board of Directors has initiated a stock repurchase 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 buy up to 3.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Insider Transactions at NVR

In related news, Director Michael J. Devito bought 11 shares of the firm's stock in a transaction on Friday, April 24th. The stock was purchased at an average price 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 $167,487.50. This trade represents a 78.57% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 8.60% of the stock is owned by insiders.

About NVR

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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