Giverny Capital Inc. Trims Position in NVR, Inc. $NVR

Key Points

• Giverny Capital Inc. has reduced its stake in NVR, Inc. by 0.5%, owning 13,490 shares valued at approximately $97.7 million, which constitutes 3.6% of its portfolio.
• Institutional ownership of NVR is high at 83.67%, with major investors like GAMMA Investing LLC and JPMorgan Chase & Co. significantly increasing their positions.
• NVR's recent earnings report showed a decline in revenue year-over-year, but the company announced a $750 million share repurchase plan, indicating confidence in its stock value.

Giverny Capital Inc. decreased its position in NVR, Inc. (NYSE:NVR - Free Report) by 0.5% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 13,490 shares of the construction company's stock after selling 68 shares during the quarter. NVR accounts for 3.6% of Giverny Capital Inc.'s portfolio, making the stock its 10th biggest holding. Giverny Capital Inc. owned approximately 0.46% of NVR worth $97,727,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of NVR. GAMMA Investing LLC increased its stake in NVR by 838,726.3% in the 1st quarter. GAMMA Investing LLC now owns 159,377 shares of the construction company's stock worth $1,154,589,000 after buying an additional 159,358 shares during the period. Siemens Fonds Invest GmbH increased its position in NVR by 116,808.2% during the 4th quarter. Siemens Fonds Invest GmbH now owns 57,285 shares of the construction company's stock valued at $468,528,000 after purchasing an additional 57,236 shares during the period. Nuveen LLC purchased a new position in NVR during the first quarter valued at approximately $334,981,000. JPMorgan Chase & Co. raised its position in shares of NVR by 41.6% in the 1st quarter. JPMorgan Chase & Co. now owns 52,404 shares of the construction company's stock worth $379,639,000 after acquiring an additional 15,405 shares in the last quarter. Finally, Citadel Advisors LLC bought a new position in NVR in the fourth quarter worth about $118,087,000. Institutional investors own 83.67% of the company's stock.

Insider Buying and Selling at NVR

In other NVR news, Director Susan Williamson Ross sold 125 shares of NVR stock in a transaction on Monday, August 4th. The shares were sold at an average price of $7,850.28, for a total value of $981,285.00. Following the completion of the transaction, the director owned 386 shares of the company's stock, valued at approximately $3,030,208.08. The trade was a 24.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Matthew B. Kelpy sold 600 shares of the stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $8,100.00, for a total transaction of $4,860,000.00. Following the sale, the chief accounting officer directly owned 208 shares in the company, valued at approximately $1,684,800. The trade was a 74.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. 7.80% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on NVR. Wall Street Zen upgraded NVR from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. UBS Group raised their target price on NVR from $7,900.00 to $8,150.00 and gave the stock a "neutral" rating in a research note on Thursday, July 24th. Finally, JPMorgan Chase & Co. boosted their price target on NVR from $7,200.00 to $7,600.00 and gave the company a "neutral" rating in a research note on Thursday, July 24th. Four research analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $8,783.33.

NVR Stock Up 0.3%

Shares of NVR opened at $8,226.78 on Monday. The company has a market capitalization of $23.61 billion, a price-to-earnings ratio of 17.36, a PEG ratio of 11.78 and a beta of 0.94. NVR, Inc. has a 52 week low of $6,562.85 and a 52 week high of $9,964.77. The stock's 50-day moving average price is $7,577.10 and its 200-day moving average price is $7,353.00. The company has a quick ratio of 2.97, a current ratio of 5.79 and a debt-to-equity ratio of 0.24.

NVR (NYSE:NVR - Get Free Report) last announced its quarterly earnings results on Wednesday, July 23rd. The construction company reported $108.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $104.89 by $3.65. The company had revenue of $2.55 billion during the quarter, compared to the consensus estimate of $2.46 billion. NVR had a return on equity of 37.35% and a net margin of 14.68%. NVR's revenue for the quarter was down .5% on a year-over-year basis. During the same period in the previous year, the company posted $120.69 earnings per share. On average, sell-side analysts predict that NVR, Inc. will post 505.2 EPS for the current year.

NVR announced that its board has initiated a share repurchase plan on Tuesday, May 6th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the construction company to buy up to 3.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

About NVR

NVR, Inc operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers.

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