Hsbc Holdings PLC Reduces Stock Position in NVR, Inc. $NVR

Key Points

• Hsbc Holdings PLC reduced its stake in NVR, Inc. by 10.3%, now owning approximately 0.76% of the company, valued at $160.2 million.
• NVR reported a quarterly earnings per share (EPS) of $108.54, beating estimates and reflecting a net margin of 14.68% despite a 0.5% decline in revenue year-over-year.
• The company's board approved a $750 million stock buyback plan, allowing for repurchase of up to 3.6% of its outstanding shares, indicating management believes the stock is undervalued.

Hsbc Holdings PLC lessened its holdings in NVR, Inc. (NYSE:NVR - Free Report) by 10.3% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 22,127 shares of the construction company's stock after selling 2,544 shares during the quarter. Hsbc Holdings PLC owned approximately 0.76% of NVR worth $160,246,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. JDM Financial Group LLC acquired a new stake in shares of NVR during the fourth quarter worth about $25,000. Olde Wealth Management LLC acquired a new stake in shares of NVR during the 1st quarter valued at approximately $36,000. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in shares of NVR during the 1st quarter valued at approximately $36,000. Ridgewood Investments LLC lifted its position in shares of NVR by 150.0% during the 1st quarter. Ridgewood Investments LLC now owns 5 shares of the construction company's stock valued at $36,000 after acquiring an additional 3 shares during the period. Finally, SouthState Corp purchased a new position in shares of NVR during the 1st quarter worth approximately $36,000. Hedge funds and other institutional investors own 83.67% of the company's stock.

NVR Stock Up 1.3%

Shares of NYSE NVR opened at $8,257.1450 on Wednesday. NVR, Inc. has a 52-week low of $6,562.85 and a 52-week high of $9,964.77. The firm has a fifty day moving average of $7,615.04 and a 200-day moving average of $7,360.37. The stock has a market capitalization of $23.70 billion, a PE ratio of 17.43, a P/E/G ratio of 11.33 and a beta of 0.94. 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 data on Wednesday, July 23rd. The construction company reported $108.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $104.89 by $3.65. NVR had a net margin of 14.68% and a return on equity of 37.35%. The company had revenue of $2.55 billion during the quarter, compared to analysts' expectations of $2.46 billion. During the same period in the previous year, the company earned $120.69 EPS. The business's quarterly revenue was down .5% compared to the same quarter last year. On average, analysts anticipate that NVR, Inc. will post 505.2 EPS for the current year.

NVR declared that its board has authorized a stock buyback plan on Tuesday, May 6th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the construction company to reacquire up to 3.6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on NVR. UBS Group raised their price objective on shares of NVR from $7,900.00 to $8,150.00 and gave the stock a "neutral" rating in a research note on Thursday, July 24th. Wall Street Zen raised shares of NVR from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. Finally, JPMorgan Chase & Co. lifted their target price on shares of NVR from $7,200.00 to $7,600.00 and gave the stock a "neutral" rating in a research note on Thursday, July 24th. One analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $8,783.33.

Insider Buying and Selling at NVR

In related 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 transaction of $981,285.00. Following the transaction, the director owned 386 shares in the company, valued at approximately $3,030,208.08. The trade was a 24.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Matthew B. Kelpy sold 600 shares of NVR stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $8,100.00, for a total transaction of $4,860,000.00. Following the transaction, the chief accounting officer owned 208 shares in the company, valued at $1,684,800. The trade was a 74.26% decrease in their position. The disclosure for this sale can be found here. 7.80% of the stock is owned by insiders.

NVR Company Profile

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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