NVR (NYSE:NVR) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded NVR from a "hold" to a "sell", though analysts remain mixed overall with MarketBeat showing an average rating of "Hold" and an average price target of $7,649.33.
• NVR missed quarterly expectations, reporting EPS of $67.76 versus $79.97 expected and revenue of $1.91B versus $2.09B expected (revenue down 21.7% year-over-year), and the stock traded down about 2.2%, near its 52-week low.
• The board authorized a $750 million share buyback (up to ~3.3% of shares) even as insiders sold roughly $9.0M of stock last quarter and institutional ownership remains high at 83.67%.

NVR (NYSE:NVR - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Other research analysts have also issued reports about the company. Truist Financial lowered 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. BTIG Research reaffirmed a "buy" rating and set a $8,096.00 target price on shares of NVR in a research report on Wednesday. Zelman & Associates raised NVR from a "sell" rating to a "hold" rating and set a $7,675.00 target price for the company in a research report on Thursday, January 29th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of NVR in a research report on Thursday, January 22nd. Finally, Seaport Research Partners reaffirmed a "sell" rating and set a $5,664.00 target price on shares of NVR in a research report on Tuesday, April 7th. Two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, NVR currently has an average rating of "Hold" and an average price target of $7,649.33.

NVR Stock Down 2.2%

Shares of NVR opened at $6,522.15 on Friday. NVR has a 52 week low of $6,301.02 and a 52 week high of $8,618.28. The stock has a market capitalization of $18.13 billion, a price-to-earnings ratio of 15.90, a PEG ratio of 3.01 and a beta of 1.07. The company has a debt-to-equity ratio of 0.24, a quick ratio of 3.71 and a current ratio of 6.21. The stock has a fifty day moving average of $6,870.94 and a 200-day moving average of $7,287.92.

NVR (NYSE:NVR - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The construction company reported $67.76 EPS for the quarter, missing analysts' consensus estimates of $79.97 by ($12.21). NVR had a net margin of 12.93% and a return on equity of 31.82%. The firm had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $2.09 billion. During the same quarter in the previous year, the company posted $94.83 earnings per share. The firm's revenue was down 21.7% on a year-over-year basis. As a group, sell-side analysts anticipate that NVR will post 402.87 earnings per share for the current fiscal year.

NVR announced that its Board of Directors has authorized a share buyback program on Wednesday, February 11th that allows the company to buyback $750.00 million in 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 generally an indication that the company's management believes its stock is undervalued.

Insider Transactions at NVR

In other NVR news, Director Susan Williamson Ross sold 200 shares of the stock in a transaction dated 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 directly owned 386 shares in the company, valued at approximately $3,057,915.16. This trade represents a 34.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Matthew B. Kelpy sold 500 shares of the stock in a transaction dated 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 owned 208 shares of the company's stock, valued at approximately $1,684,800. The trade was a 70.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,120 shares of company stock valued at $9,012,736. Company insiders own 8.60% of the company's stock.

Institutional Trading of NVR

A number of large investors have recently bought and sold shares of the business. USS Investment Management Ltd grew its holdings in NVR by 5.2% during the 1st quarter. USS Investment Management Ltd now owns 682 shares of the construction company's stock worth $4,490,000 after acquiring an additional 34 shares during the period. IFM Investors Pty Ltd acquired a new stake in NVR during the 1st quarter worth about $3,862,000. iA Global Asset Management Inc. grew its holdings in NVR by 36.0% during the 1st quarter. iA Global Asset Management Inc. now owns 272 shares of the construction company's stock worth $1,792,000 after acquiring an additional 72 shares during the period. Inspire Investing LLC grew its holdings in NVR by 13.3% during the 1st quarter. Inspire Investing LLC now owns 51 shares of the construction company's stock worth $336,000 after acquiring an additional 6 shares during the period. Finally, Apollon Wealth Management LLC acquired a new stake in shares of NVR in the 1st quarter valued at about $336,000. 83.67% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.