NVR (NYSE:NVR) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded NVR from “hold” to “strong sell,” while also issuing new multi-year earnings estimates for the homebuilder.
• The stock has mixed analyst sentiment overall: MarketBeat shows a consensus rating of Hold with an average target price of $7,478.50, as other firms recently kept or changed ratings and price targets.
• NVR’s latest quarterly results missed Wall Street estimates, with EPS of $67.76 versus $79.97 expected and revenue of $1.91 billion versus $2.09 billion expected, while revenue fell 21.7% year over year.

NVR (NYSE:NVR - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report issued on Tuesday,Zacks.com reports. Zacks Research also issued estimates for NVR's Q1 2027 earnings at $85.66 EPS, Q2 2027 earnings at $105.30 EPS, Q3 2027 earnings at $115.67 EPS, Q4 2027 earnings at $123.01 EPS, FY2027 earnings at $429.65 EPS, Q1 2028 earnings at $91.22 EPS and FY2028 earnings at $461.91 EPS.

A number of other research analysts have also weighed in on the stock. Wall Street Zen raised shares of NVR from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Weiss Ratings cut shares of NVR from a "hold (c)" rating to a "sell (d+)" rating in a research note on Thursday, May 7th. BTIG Research restated a "buy" rating and issued a $8,096.00 target price on shares of NVR in a report on Wednesday, April 22nd. Seaport Research Partners restated a "sell" rating and set a $5,664.00 target price on shares of NVR in a research report on Tuesday, April 7th. Finally, UBS Group lowered their price target on shares of NVR from $8,100.00 to $7,700.00 and set a "neutral" rating for the company in a report on Thursday, April 23rd. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, NVR has a consensus rating of "Hold" and an average target price of $7,478.50.

NVR Price Performance

NYSE:NVR opened at $6,363.37 on Tuesday. The business's 50-day moving average is $6,343.46 and its 200 day moving average is $6,797.21. NVR has a 12 month low of $5,501.01 and a 12 month high of $8,618.28. The company has a market capitalization of $17.18 billion, a P/E ratio of 15.51, a P/E/G ratio of 16.23 and a beta of 0.90. The company has a current ratio of 5.19, a quick ratio of 2.67 and a debt-to-equity ratio of 0.26.

NVR (NYSE:NVR - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The construction company reported $67.76 earnings per share for the quarter, missing the consensus estimate of $79.97 by ($12.21). The firm had revenue of $1.91 billion for the quarter, compared to analysts' expectations of $2.09 billion. NVR had a net margin of 12.93% and a return on equity of 32.66%. The business's quarterly revenue was down 21.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $94.83 EPS. On average, equities research analysts forecast that NVR will post 371.11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other NVR news, Director Michael J. Devito acquired 11 shares of the firm's stock in a transaction dated Friday, April 24th. The stock was purchased at an average price of $6,699.50 per share, for a total transaction of $73,694.50. Following the acquisition, the director owned 25 shares in the company, valued at approximately $167,487.50. This trade represents a 78.57% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 8.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On NVR

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NVR. Wedge Capital Management L L P NC grew its stake in shares of NVR by 27.5% during the second quarter. Wedge Capital Management L L P NC now owns 1,498 shares of the construction company's stock worth $10,206,000 after acquiring an additional 323 shares during the last quarter. Tema ETFs LLC grew its position in NVR by 38.1% during the 2nd quarter. Tema ETFs LLC now owns 58 shares of the construction company's stock worth $395,000 after purchasing an additional 16 shares during the last quarter. Handelsbanken Fonder AB grew its position in NVR by 65.9% during the 2nd quarter. Handelsbanken Fonder AB now owns 1,921 shares of the construction company's stock worth $13,089,000 after purchasing an additional 763 shares during the last quarter. Wealthcare Advisory Partners LLC increased its stake in NVR by 1.0% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 203 shares of the construction company's stock valued at $1,383,000 after purchasing an additional 2 shares in the last quarter. Finally, Everhart Financial Group Inc. raised its holdings in shares of NVR by 31.0% in the second quarter. Everhart Financial Group Inc. now owns 76 shares of the construction company's stock worth $518,000 after buying an additional 18 shares during the last quarter. 83.67% of the stock is currently owned by hedge funds and other 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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