NVR (NYSE:NVR) Downgraded by Seaport Research Partners to "Strong Sell"

Key Points

• Seaport Research Partners downgraded NVR from a "hold" to a strong sell, though MarketBeat's consensus rating remains "Hold" with an average price target of about $8,182.83.
• NVR beat Q4 EPS estimates ($121.54 vs. $105.42) but reported revenue down 5.2% year‑over‑year, and the stock was reported down about 3.2% on the news.
• The board authorized a $750 million repurchase (about 3.3% of shares) even as insiders have sold shares recently and institutional investors own roughly 83.7% of the company.

NVR (NYSE:NVR - Get Free Report) was downgraded by equities researchers at Seaport Research Partners from a "hold" rating to a "strong sell" rating in a research report issued on Monday,Zacks.com reports.

Several other brokerages also recently issued reports on NVR. Weiss Ratings reissued a "hold (c+)" rating on shares of NVR in a report on Thursday, January 22nd. UBS Group set a $8,100.00 price target on shares of NVR in a report on Friday, February 13th. Wall Street Zen raised shares of NVR from a "sell" rating to a "hold" rating in a report on Saturday, January 31st. Truist Financial began coverage on shares of NVR in a report on Wednesday, March 4th. They set a "hold" rating and a $7,700.00 price target for the company. Finally, Zelman & Associates raised shares of NVR from a "sell" rating to a "hold" rating and set a $7,675.00 price target for the company in a report on Thursday, January 29th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $8,182.83.

NVR Stock Down 3.2%

NVR stock opened at $6,501.06 on Monday. The company has a debt-to-equity ratio of 0.24, a current ratio of 6.21 and a quick ratio of 3.71. NVR has a 1-year low of $6,301.02 and a 1-year high of $8,618.28. The firm has a fifty day moving average price of $7,147.91 and a two-hundred day moving average price of $7,391.81. The firm has a market cap of $18.06 billion, a price-to-earnings ratio of 14.87, a PEG ratio of 2.27 and a beta of 1.07.

NVR (NYSE:NVR - Get Free Report) last released its earnings results on Wednesday, January 28th. The construction company reported $121.54 earnings per share for the quarter, beating the consensus estimate of $105.42 by $16.12. NVR had a net margin of 13.27% and a return on equity of 34.28%. The firm had revenue of $2.74 billion during the quarter, compared to analyst estimates of $2.41 billion. During the same quarter in the previous year, the firm earned $139.93 earnings per share. The firm's revenue for the quarter was down 5.2% compared to the same quarter last year. Research analysts predict that NVR will post 505.2 EPS for the current year.

NVR announced that its board has authorized a stock repurchase program on Wednesday, February 11th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the construction company to reacquire up to 3.3% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, Director Susan Williamson Ross sold 200 shares of the company's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $7,922.06, for a total value of $1,584,412.00. Following the completion of the sale, the director owned 386 shares of the company's stock, valued at $3,057,915.16. This represents a 34.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Matthew B. Kelpy sold 500 shares of the company's stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $8,100.00, for a total transaction of $4,050,000.00. Following the completion of the sale, the chief accounting officer directly owned 208 shares of the company's stock, valued at $1,684,800. The trade was a 70.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,120 shares of company stock valued at $9,012,736 in the last ninety days. Corporate insiders own 8.60% of the company's stock.

Institutional Investors Weigh In On NVR

Several institutional investors have recently bought and sold shares of NVR. M&T Bank Corp lifted its holdings in NVR by 34,923.5% in 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. Norges Bank acquired a new stake in NVR in the 4th quarter valued at about $311,496,000. Corient Private Wealth LLC lifted its holdings in NVR by 407.5% in the 4th quarter. Corient Private Wealth LLC now owns 45,572 shares of the construction company's stock valued at $332,346,000 after acquiring an additional 36,592 shares during the last quarter. Close Asset Management Ltd acquired a new stake in NVR in the 3rd quarter valued at about $148,939,000. Finally, Citadel Advisors LLC lifted its holdings in NVR by 318.4% in the 3rd quarter. Citadel Advisors LLC now owns 19,215 shares of the construction company's stock valued at $154,386,000 after acquiring an additional 14,623 shares during the last quarter. Institutional investors and hedge funds own 83.67% of the company's stock.

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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