NVR, Inc. (NYSE:NVR) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• NVR currently carries a consensus "Hold" rating from seven analysts, with an average 1-year price target of about $7,649.
• The company recently reported weaker-than-expected quarterly results, with EPS of $67.76 versus an expected $79.97 and revenue of $1.91 billion, down 21.7% year over year.
• NVR’s board approved a $750 million share buyback, while insider and institutional activity has been positive, including a recent director purchase and continued institutional ownership of 83.67%.

Shares of NVR, Inc. (NYSE:NVR - Get Free Report) have been given an average rating of "Hold" by the seven analysts that are covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $7,649.3333.

A number of equities research analysts have recently weighed in on NVR shares. 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 reduced their price target 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. BTIG Research restated a "buy" rating and issued a $8,096.00 price target on shares of NVR in a research note on Wednesday, April 22nd. Zelman & Associates upgraded shares of NVR from a "sell" rating to a "hold" rating and set a $7,675.00 price target on the stock in a research note on Thursday, January 29th. Finally, UBS Group reduced their price target 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.

Insider Buying and Selling

In other NVR news, Director Michael J. Devito bought 11 shares of the business's stock in a transaction that occurred on Friday, April 24th. The shares were acquired at an average cost of $6,699.50 per share, for a total transaction of $73,694.50. Following the transaction, the director directly owned 25 shares in the company, valued at approximately $167,487.50. This represents a 78.57% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 8.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Wellington Grp LLC raised its holdings in NVR by 4.6% during the 1st quarter. Wellington Grp LLC now owns 68 shares of the construction company's stock worth $448,000 after purchasing an additional 3 shares during the last quarter. Western Wealth Management LLC bought a new position in NVR during the 1st quarter worth approximately $105,000. EMG Holdings L.P. raised its holdings in NVR by 9.2% during the 1st quarter. EMG Holdings L.P. now owns 273 shares of the construction company's stock worth $1,799,000 after purchasing an additional 23 shares during the last quarter. Bank of America Corp DE raised its holdings in NVR by 6.3% during the 1st quarter. Bank of America Corp DE now owns 13,520 shares of the construction company's stock worth $89,095,000 after purchasing an additional 804 shares during the last quarter. Finally, Amundi raised its holdings in NVR by 20.6% during the 1st quarter. Amundi now owns 7,365 shares of the construction company's stock worth $48,534,000 after purchasing an additional 1,256 shares during the last quarter. Institutional investors own 83.67% of the company's stock.

NVR Price Performance

NYSE:NVR opened at $6,042.13 on Monday. NVR has a 52 week low of $5,501.01 and a 52 week high of $8,618.28. The firm has a market cap of $16.31 billion, a price-to-earnings ratio of 14.73, a P/E/G ratio of 4.45 and a beta of 0.95. The firm's 50-day simple moving average is $6,405.30 and its 200 day simple moving average is $7,086.49. The company has a debt-to-equity ratio of 0.26, a quick ratio of 2.67 and a current ratio of 5.19.

NVR (NYSE:NVR - Get Free Report) last released its 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 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 period in the prior year, the business earned $94.83 earnings per share. NVR's quarterly revenue was down 21.7% compared to the same quarter last year. As a group, sell-side analysts predict that NVR will post 375.15 earnings per share for the current year.

NVR announced that its board has approved a stock repurchase program on Wednesday, February 11th that allows the company to buyback $750.00 million in outstanding shares. This buyback authorization allows the construction company to purchase up to 3.3% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its shares are undervalued.

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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