Geode Capital Management LLC Cuts Stake in NVR, Inc. $NVR

Key Points

• Geode Capital Management trimmed its NVR stake slightly in the fourth quarter, selling 260 shares and ending with 75,268 shares worth about $552.9 million.
• NVR reported weaker-than-expected quarterly results, with EPS of $67.76 and revenue of $1.91 billion, both below analyst estimates and down sharply from the prior year.
• The company’s board authorized a $750 million share repurchase program, while analysts currently have a mixed view with an overall Hold rating and an average price target of $7,649.33.

Geode Capital Management LLC reduced its holdings in shares of NVR, Inc. (NYSE:NVR - Free Report) by 0.3% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 75,268 shares of the construction company's stock after selling 260 shares during the period. Geode Capital Management LLC owned about 2.65% of NVR worth $552,855,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the business. Capital Research Global Investors increased its stake in NVR by 8.0% during the 3rd quarter. Capital Research Global Investors now owns 133,003 shares of the construction company's stock worth $1,068,634,000 after buying an additional 9,877 shares during the period. Principal Financial Group Inc. increased its stake in NVR by 4.0% during the 3rd quarter. Principal Financial Group Inc. now owns 60,307 shares of the construction company's stock worth $484,546,000 after buying an additional 2,331 shares during the period. M&T Bank Corp increased its stake in NVR by 34,923.5% during the 4th quarter. M&T Bank Corp now owns 56,738 shares of the construction company's stock worth $413,777,000 after buying an additional 56,576 shares during the period. JPMorgan Chase & Co. increased its stake in NVR by 4.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 43,318 shares of the construction company's stock worth $348,051,000 after buying an additional 1,718 shares during the period. Finally, Capital World Investors increased its stake in NVR by 0.3% during the 3rd quarter. Capital World Investors now owns 40,576 shares of the construction company's stock worth $326,014,000 after buying an additional 109 shares during the period. 83.67% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, Director Michael J. Devito purchased 11 shares of the stock in a transaction on Friday, April 24th. The stock was bought at an average price of $6,699.50 per share, for a total transaction of $73,694.50. Following the acquisition, the director directly owned 25 shares of the company's stock, valued at approximately $167,487.50. The trade was a 78.57% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 8.60% of the stock is owned by company insiders.

NVR Trading Down 0.9%

NYSE NVR opened at $6,102.06 on Friday. The company has a quick ratio of 2.67, a current ratio of 5.19 and a debt-to-equity ratio of 0.26. NVR, Inc. has a 52 week low of $5,501.01 and a 52 week high of $8,618.28. The stock has a market capitalization of $16.48 billion, a PE ratio of 14.88, a price-to-earnings-growth ratio of 4.50 and a beta of 0.95. The firm has a 50 day moving average of $6,362.93 and a two-hundred day moving average of $7,048.61.

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

NVR declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, February 11th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the construction company to buy up to 3.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Wall Street Zen raised shares of NVR from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. BTIG Research reaffirmed a "buy" rating and set a $8,096.00 target price on shares of NVR in a research note on Wednesday, April 22nd. Weiss Ratings downgraded shares of NVR from a "hold (c)" rating to a "sell (d+)" rating in a research note on Thursday, May 7th. UBS Group cut their target price on shares of NVR from $8,100.00 to $7,700.00 and set a "neutral" rating on the stock in a research note on Thursday, April 23rd. Finally, Truist Financial cut their target price on shares of NVR from $7,100.00 to $6,600.00 and set a "hold" rating on the stock in a research note on Thursday, April 23rd. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $7,649.33.

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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