Smead Capital Management Inc. Sells 1,717 Shares of NVR, Inc. $NVR

Key Points

• Smead Capital Management reduced its NVR stake by 6.5% in the fourth quarter, selling 1,717 shares and leaving it with 24,745 shares valued at about $180.5 million. NVR remained a meaningful holding, making up 3.7% of the fund’s portfolio.
• NVR’s latest quarterly results disappointed, with EPS of $67.76 missing expectations of $79.97 and revenue falling 21.7% year over year to $1.91 billion. Despite the weak quarter, analysts still expect full-year EPS of 375.15.
• The company authorized a $750 million share repurchase plan, covering up to 3.3% of its shares, which typically signals management believes the stock may be undervalued. Analysts currently have a consensus “Hold” rating and average price target of $7,649.33.

Smead Capital Management Inc. lessened its stake in NVR, Inc. (NYSE:NVR - Free Report) by 6.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 24,745 shares of the construction company's stock after selling 1,717 shares during the period. NVR comprises 3.7% of Smead Capital Management Inc.'s portfolio, making the stock its 12th biggest holding. Smead Capital Management Inc. owned approximately 0.87% of NVR worth $180,458,000 as of its most recent filing with the SEC.

Other hedge funds have also made changes to their positions in the company. M&T Bank Corp lifted its stake in NVR by 34,923.5% during the fourth quarter. M&T Bank Corp now owns 56,738 shares of the construction company's stock worth $413,777,000 after purchasing an additional 56,576 shares during the period. Close Asset Management Ltd bought a new position in NVR during the third quarter worth about $148,939,000. Citadel Advisors LLC lifted its stake in NVR by 318.4% during the third quarter. Citadel Advisors LLC now owns 19,215 shares of the construction company's stock worth $154,386,000 after purchasing an additional 14,623 shares during the period. Capital Research Global Investors lifted its stake in NVR by 8.0% during the third quarter. Capital Research Global Investors now owns 133,003 shares of the construction company's stock worth $1,068,634,000 after purchasing an additional 9,877 shares during the period. Finally, Assenagon Asset Management S.A. lifted its stake in NVR by 104.6% during the fourth quarter. Assenagon Asset Management S.A. now owns 15,318 shares of the construction company's stock worth $111,711,000 after purchasing an additional 7,831 shares during the period. Institutional investors own 83.67% of the company's stock.

NVR Stock Performance

NYSE:NVR opened at $6,042.13 on Friday. NVR, Inc. has a 1 year low of $5,501.01 and a 1 year high of $8,618.28. The firm has a 50 day moving average of $6,405.30 and a 200-day moving average of $7,086.31. 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 stock has a market capitalization of $16.31 billion, a P/E ratio of 14.73, a price-to-earnings-growth ratio of 4.45 and a beta of 0.95.

NVR (NYSE:NVR - Get Free Report) last posted 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). NVR had a net margin of 12.93% and a return on equity of 32.66%. The firm had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $2.09 billion. During the same quarter last year, the firm posted $94.83 EPS. The business's revenue was down 21.7% on a year-over-year basis. As a group, sell-side analysts anticipate that NVR, Inc. will post 375.15 EPS for the current fiscal year.

NVR announced that its Board of Directors has authorized a share 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 shares through open market purchases. Shares repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

A number of brokerages have commented on NVR. Bank of America cut their price target on shares of NVR from $8,600.00 to $8,225.00 and set a "buy" rating for the company in a research note on Monday, April 20th. Wall Street Zen upgraded shares of NVR from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Truist Financial cut their price target on shares of 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. UBS Group cut their price target on shares of NVR from $8,100.00 to $7,700.00 and set a "neutral" rating for the company in a research note on Thursday, April 23rd. Finally, BTIG Research restated a "buy" rating and set a $8,096.00 price target on shares of NVR in a research note on Wednesday, April 22nd. Two 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's stock. According to data from MarketBeat, NVR has a consensus rating of "Hold" and a consensus target price of $7,649.33.

Insider Buying and Selling at NVR

In related news, Director Michael J. Devito purchased 11 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was acquired at an average price of $6,699.50 per share, with a total value of $73,694.50. Following the completion of the acquisition, the director directly owned 25 shares in the company, valued at approximately $167,487.50. This trade represents a 78.57% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 8.60% of the stock is currently owned by corporate 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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