NVR (NYSE:NVR) Announces Earnings Results, Misses Expectations By $6.02 EPS

Key Points

• NVR reported quarterly EPS of $83.96, which missed analysts’ estimate of $89.98 by $6.02 and was well below the $108.54 posted in the same quarter last year.
• The stock fell 6.1% after the earnings release, trading down to $5,961.58 amid relatively light volume.
• Sentiment around NVR turned more cautious, with multiple firms cutting ratings or price targets, including Zacks downgrading the stock to “strong sell” and lowering several future earnings estimates.

NVR (NYSE:NVR - Get Free Report) issued its quarterly earnings data on Thursday. The construction company reported $83.96 earnings per share (EPS) for the quarter, missing the consensus estimate of $89.98 by ($6.02), RTT News reports. NVR had a net margin of 12.93% and a return on equity of 32.66%. During the same period in the prior year, the company posted $108.54 earnings per share.

NVR Trading Down 6.1%

Shares of NYSE NVR traded down $387.70 during midday trading on Thursday, hitting $5,961.58. The stock had a trading volume of 3,019 shares, compared to its average volume of 27,767. The company's 50-day simple moving average is $6,343.46 and its 200 day simple moving average is $6,797.21. The firm has a market cap of $16.10 billion, a P/E ratio of 14.62, a price-to-earnings-growth ratio of 16.23 and a beta of 0.90. NVR has a fifty-two week low of $5,501.01 and a fifty-two week high of $8,618.28. The company has a debt-to-equity ratio of 0.26, a current ratio of 5.19 and a quick ratio of 2.67.

Trending Headlines about NVR

Here are the key news stories impacting NVR this week:

• Negative Sentiment: Zacks Research downgraded NVR from hold to strong sell, which is likely weighing on investor sentiment. Zacks.com
• Negative Sentiment: The firm lowered earnings estimates for FY2027, Q1 2028, Q2 2027, Q4 2027 and FY2028, suggesting expectations for future profitability have weakened. Zacks.com
• Neutral Sentiment: Zacks nudged its Q3 2027 EPS estimate higher, but the increase was modest and does little to offset the broader downward revisions. Zacks.com
• Neutral Sentiment: A separate note said Bank of America also lowered expectations for NVR’s stock price, reinforcing the cautious tone around the name. American Banking News

Insider Buying and Selling at NVR

In other news, Director Michael J. Devito purchased 11 shares of the business's stock in a transaction dated Friday, April 24th. The shares were acquired 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 directly owned 25 shares of the company's stock, valued at $167,487.50. The trade was a 78.57% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 8.60% of the stock is currently owned by insiders.

Institutional Trading of NVR

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Quadrant Capital Group LLC raised its position in NVR by 2.4% during the third quarter. Quadrant Capital Group LLC now owns 87 shares of the construction company's stock worth $699,000 after acquiring an additional 2 shares in the last quarter. Vise Technologies Inc. increased its stake in shares of NVR by 0.8% during the 3rd quarter. Vise Technologies Inc. now owns 239 shares of the construction company's stock worth $1,920,000 after purchasing an additional 2 shares during the last quarter. Laird Norton Wetherby Wealth Management LLC raised its holdings in shares of NVR by 1.5% in the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 139 shares of the construction company's stock valued at $1,117,000 after purchasing an additional 2 shares during the period. State of Wyoming lifted its stake in NVR by 33.3% in the 4th quarter. State of Wyoming now owns 8 shares of the construction company's stock valued at $58,000 after purchasing an additional 2 shares during the last quarter. Finally, Great Valley Advisor Group Inc. lifted its stake in NVR by 5.7% in the 2nd quarter. Great Valley Advisor Group Inc. now owns 56 shares of the construction company's stock valued at $414,000 after purchasing an additional 3 shares during the last quarter. 83.67% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several analysts have recently commented on the company. Seaport Research Partners restated a "sell" rating and set a $5,664.00 target price on shares of NVR in a report on Tuesday, April 7th. UBS Group cut their price target on NVR from $8,100.00 to $7,700.00 and set a "neutral" rating for the company in a report on Thursday, April 23rd. Zacks Research downgraded shares of NVR from a "hold" rating to a "strong sell" rating in a research report on Tuesday. Weiss Ratings lowered shares of NVR from a "hold (c)" rating to a "sell (d+)" rating in a report on Thursday, May 7th. Finally, Zelman & Associates upgraded shares of NVR from a "hold" rating to a "buy" rating in a research report on Tuesday, July 7th. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $7,478.50.

NVR Company 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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