NVR (NYSE:NVR) Reaches New 1-Year Low - What's Next?

Key Points

• Shares hit a new 52-week low, trading as low as $6,260.27 and last at $6,273.71, well below the 50‑day ($6,830.95) and 200‑day ($7,265.52) moving averages.
• NVR missed quarterly estimates, reporting EPS of $67.76 versus $79.97 expected and revenue of $1.91B versus $2.09B, with revenue down 21.7% year‑over‑year.
• The board authorized a $750M share buyback (up to ~3.3% of shares) while analysts maintain a consensus "Hold" with an average target of $7,649.33 amid notable insider selling of roughly $9M last quarter.

Shares of NVR, Inc. (NYSE:NVR - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $6,260.27 and last traded at $6,273.7090, with a volume of 4658 shares trading hands. The stock had previously closed at $6,442.36.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on NVR. Zelman & Associates raised shares of NVR from a "sell" rating to a "hold" rating and set a $7,675.00 price objective 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. Seaport Research Partners reaffirmed a "sell" rating and set a $5,664.00 price objective on shares of NVR in a research report on Tuesday, April 7th. Wall Street Zen lowered shares of NVR from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, UBS Group cut their price objective on shares of NVR from $8,100.00 to $7,700.00 and set a "neutral" rating for the company in a research report on Thursday, April 23rd. Two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $7,649.33.

NVR Price Performance

The company has a quick ratio of 3.71, a current ratio of 6.21 and a debt-to-equity ratio of 0.24. The stock has a market cap of $17.35 billion, a price-to-earnings ratio of 15.23, a price-to-earnings-growth ratio of 4.55 and a beta of 1.07. The company's 50-day moving average is $6,830.95 and its 200-day moving average is $7,265.52.

NVR (NYSE:NVR - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The construction company reported $67.76 earnings per share (EPS) for the quarter, missing the consensus estimate of $79.97 by ($12.21). NVR had a return on equity of 31.82% and a net margin of 12.93%.The business had revenue of $1.91 billion during the quarter, compared to analyst estimates of $2.09 billion. During the same period last year, the company earned $94.83 EPS. The business's revenue for the quarter was down 21.7% on a year-over-year basis. Equities research analysts expect that NVR, Inc. will post 393.81 earnings per share for the current fiscal year.

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

Insider Buying and Selling

In related news, CAO Matthew B. Kelpy sold 500 shares of the stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $8,100.00, for a total value of $4,050,000.00. Following the completion of the transaction, the chief accounting officer owned 208 shares of the company's stock, valued at $1,684,800. This represents a 70.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Susan Williamson Ross sold 220 shares of the firm's stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $8,000.00, for a total transaction of $1,760,000.00. Following the sale, the director directly owned 386 shares of the company's stock, valued at approximately $3,088,000. The trade was a 36.30% 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 over the last quarter. Corporate insiders own 8.60% of the company's stock.

Hedge Funds Weigh In On NVR

A number of hedge funds and other institutional investors have recently bought and sold shares of NVR. Atwater Malick LLC boosted its holdings in NVR by 5.9% in the 3rd quarter. Atwater Malick LLC now owns 36 shares of the construction company's stock valued at $289,000 after purchasing an additional 2 shares during the period. SkyOak Wealth LLC increased its position in NVR by 6.9% during the 3rd quarter. SkyOak Wealth LLC now owns 31 shares of the construction company's stock worth $249,000 after purchasing an additional 2 shares in the last quarter. Pure Financial Advisors LLC increased its position in NVR by 0.7% during the 3rd quarter. Pure Financial Advisors LLC now owns 308 shares of the construction company's stock worth $2,475,000 after purchasing an additional 2 shares in the last quarter. CoreCap Advisors LLC increased its position in NVR by 18.2% during the 3rd quarter. CoreCap Advisors LLC now owns 13 shares of the construction company's stock worth $104,000 after purchasing an additional 2 shares in the last quarter. Finally, Deseret Mutual Benefit Administrators increased its position in NVR by 8.3% during the 3rd quarter. Deseret Mutual Benefit Administrators now owns 26 shares of the construction company's stock worth $209,000 after purchasing an additional 2 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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