Vanguard Group Inc. Trims Stake in NVR, Inc. $NVR

Key Points

• Vanguard trimmed its NVR stake by 2.5% in Q4, selling 8,373 shares and now owns 324,522 shares (about 11.43%) valued at roughly $2.37 billion.
• NVR missed quarterly expectations, reporting EPS of $67.76 versus $79.97 expected and revenue of $1.91 billion (down 21.7% year-over-year, versus $2.09 billion expected).
• The board approved a $750 million share buyback (up to 3.3% of shares) even as analysts trimmed price targets and the consensus rating sits at "Hold" with an average target of $7,649.33.

Vanguard Group Inc. cut its holdings in NVR, Inc. (NYSE:NVR - Free Report) by 2.5% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 324,522 shares of the construction company's stock after selling 8,373 shares during the period. Vanguard Group Inc. owned 11.43% of NVR worth $2,366,664,000 as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. Pure Financial Advisors LLC increased its stake in NVR by 0.7% in the third quarter. Pure Financial Advisors LLC now owns 308 shares of the construction company's stock worth $2,475,000 after purchasing an additional 2 shares during the period. CoreCap Advisors LLC boosted its stake in shares of NVR by 18.2% during the third quarter. CoreCap Advisors LLC now owns 13 shares of the construction company's stock valued at $104,000 after purchasing an additional 2 shares during the period. SkyOak Wealth LLC grew its holdings in shares of NVR by 6.9% in the third quarter. SkyOak Wealth LLC now owns 31 shares of the construction company's stock worth $249,000 after purchasing an additional 2 shares during the last quarter. Atwater Malick LLC grew its holdings in shares of NVR by 5.9% in the third quarter. Atwater Malick LLC now owns 36 shares of the construction company's stock worth $289,000 after purchasing an additional 2 shares during the last quarter. Finally, Drive Wealth Management LLC increased its stake in NVR by 7.1% in the 3rd 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 period. Institutional investors own 83.67% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently commented on NVR. Wall Street Zen lowered shares of NVR from a "hold" rating to a "sell" rating in a research report on Saturday, April 25th. Truist Financial decreased their target price on NVR from $7,100.00 to $6,600.00 and set a "hold" rating for the company in a research report on Thursday, April 23rd. UBS Group cut their price target on 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. Bank of America lowered their price objective 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. Finally, BTIG Research restated a "buy" rating and issued a $8,096.00 price target on shares of NVR in a report on Wednesday, April 22nd. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $7,649.33.

NVR Stock Performance

Shares of NVR opened at $6,203.65 on Thursday. The firm has a market cap of $17.23 billion, a PE ratio of 15.12, a P/E/G ratio of 4.55 and a beta of 1.07. NVR, Inc. has a 12 month low of $6,195.15 and a 12 month high of $8,618.28. The company has a current ratio of 6.21, a quick ratio of 3.71 and a debt-to-equity ratio of 0.24. The stock has a fifty day moving average price of $6,804.63 and a 200-day moving average price of $7,258.10.

NVR (NYSE:NVR - Get Free Report) last issued its quarterly 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 analyst estimates of $2.09 billion. NVR had a net margin of 12.93% and a return on equity of 31.82%. The company's revenue for the quarter was down 21.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $94.83 EPS. Equities research analysts predict that NVR, Inc. will post 393.81 earnings per share for the current fiscal year.

NVR declared that its Board of Directors has approved a share repurchase plan on Wednesday, February 11th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the construction company to repurchase up to 3.3% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, CAO Matthew B. Kelpy sold 500 shares of NVR stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $8,100.00, for a total value of $4,050,000.00. Following the sale, the chief accounting officer owned 208 shares of the company's stock, valued at approximately $1,684,800. This trade represents a 70.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Michael J. Devito acquired 11 shares of the business's stock in a transaction on Friday, April 24th. The shares were purchased at an average price of $6,699.50 per share, with a total value of $73,694.50. Following the completion of the purchase, the director owned 25 shares in the company, valued at $167,487.50. This represents a 78.57% increase in their position. The SEC filing for this purchase provides additional information. Insiders have sold a total of 1,120 shares of company stock valued at $9,012,736 over the last ninety days. Company insiders own 8.60% of the company's stock.

NVR Profile

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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