NVR (NYSE:NVR) Hits New 52-Week Low - Should You Sell?

Key Points

• NVR shares hit a new 52-week low, trading as low as $5,901 and last changing hands around $5,925, down about 1.1% on the day.
• Analysts have turned more cautious on the stock, with several lowering price targets and Weiss Ratings cutting NVR to “sell”; the consensus rating is now Hold with an average target of $7,649.33.
• The company recently reported weaker-than-expected earnings and revenue, missing estimates for both EPS and sales as quarterly revenue fell 21.7% from a year earlier.

NVR, Inc. (NYSE:NVR - Get Free Report)'s stock price reached a new 52-week low on Monday . The stock traded as low as $5,901.00 and last traded at $5,925.5550, with a volume of 3705 shares changing hands. The stock had previously closed at $5,974.07.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Bank of America lowered their target price on NVR from $8,600.00 to $8,225.00 and set a "buy" rating on the stock in a research note on Monday, April 20th. UBS Group lowered their price target on 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. Truist Financial lowered their price target on 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. Weiss Ratings cut NVR from a "hold (c)" rating to a "sell (d+)" rating in a research note on Thursday. Finally, Seaport Research Partners reissued a "sell" rating and issued a $5,664.00 price target on shares of NVR in a research note on Tuesday, April 7th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $7,649.33.

NVR Stock Down 1.1%

The stock has a market cap of $15.94 billion, a P/E ratio of 14.40, a PEG ratio of 4.34 and a beta of 0.95. The company has a quick ratio of 2.67, a current ratio of 5.19 and a debt-to-equity ratio of 0.26. The business has a 50-day simple moving average of $6,692.26 and a 200-day simple moving average of $7,212.09.

NVR (NYSE:NVR - Get Free Report) last announced 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). The company had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $2.09 billion. NVR had a return on equity of 32.66% and a net margin of 12.93%.The firm's revenue for the quarter was down 21.7% compared to the same quarter last year. During the same period in the previous year, the company earned $94.83 EPS. Analysts expect that NVR, Inc. will post 380.26 EPS for the current year.

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

Insiders Place Their Bets

In other NVR news, Director Susan Williamson Ross sold 200 shares of the company's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $7,922.06, for a total transaction 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Matthew B. Kelpy sold 500 shares of the company's stock in a transaction that occurred on Tuesday, February 10th. The stock was 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 directly owned 208 shares of the company's stock, valued at $1,684,800. The trade was a 70.62% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 8.60% of the company's stock.

Institutional Investors Weigh In On NVR

Hedge funds have recently modified their holdings of the business. Oslo Pensjonsforsikring AS acquired a new position in shares of NVR in the first quarter valued at $92,000. Baader Bank Aktiengesellschaft acquired a new position in shares of NVR in the first quarter valued at $382,000. Dimensional Fund Advisors LP raised its stake in shares of NVR by 4.1% in the first quarter. Dimensional Fund Advisors LP now owns 40,154 shares of the construction company's stock valued at $264,589,000 after purchasing an additional 1,588 shares in the last quarter. Parallel Advisors LLC raised its stake in shares of NVR by 3.7% in the first quarter. Parallel Advisors LLC now owns 56 shares of the construction company's stock valued at $369,000 after purchasing an additional 2 shares in the last quarter. Finally, KBC Group NV raised its stake in shares of NVR by 2.1% in the first quarter. KBC Group NV now owns 597 shares of the construction company's stock valued at $3,934,000 after purchasing an additional 12 shares in the last quarter. 83.67% of the stock is owned by institutional investors.

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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