NVR (NYSE:NVR) Sets New 12-Month Low - Time to Sell?

Key Points

• NVR hit a new 52-week low at $5,930.00 (last $5,942.35), down about 3.4% with ~18,380 shares traded and trading below its 50- and 200-day moving averages.
• The company reported an earnings and revenue miss — $67.76 EPS vs. $79.97 expected and $1.91B revenue vs. $2.09B expected, with quarterly revenue down 21.7% year-over-year.
• Analysts are mixed (average rating "Hold" and average price target $7,649.33), while the board approved a $750M share buyback (~3.3% of shares) and insiders have both bought and sold small positions.

NVR, Inc. (NYSE:NVR - Get Free Report) shares hit a new 52-week low during trading on Tuesday . The company traded as low as $5,930.00 and last traded at $5,942.35, with a volume of 18380 shares trading hands. The stock had previously closed at $6,154.14.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of NVR in a report on Thursday, January 22nd. BTIG Research reaffirmed a "buy" rating and set a $8,096.00 target price on shares of NVR in a report on Wednesday, April 22nd. Seaport Research Partners reaffirmed a "sell" rating and set a $5,664.00 target price on shares of NVR in a report on Tuesday, April 7th. Zelman & Associates raised shares of NVR from a "sell" rating to a "hold" rating and set a $7,675.00 target price for the company in a report on Thursday, January 29th. Finally, Bank of America reduced their target price on shares of NVR from $8,600.00 to $8,225.00 and set a "buy" rating for the company in a report on Monday, April 20th. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, NVR presently has an average rating of "Hold" and an average price target of $7,649.33.

NVR Stock Down 3.4%

The firm's 50-day moving average price is $6,780.56 and its 200 day moving average price is $7,245.76. The company has a market capitalization of $16.51 billion, a price-to-earnings ratio of 14.49, a PEG ratio of 4.32 and a beta of 0.95. The company has a current ratio of 6.21, a quick ratio of 3.71 and a debt-to-equity ratio of 0.24.

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

NVR declared that its Board of Directors has approved a stock buyback plan on Wednesday, February 11th that authorizes the company to repurchase $750.00 million in shares. This repurchase authorization authorizes the construction company to buy up to 3.3% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

Insider Activity at NVR

In related news, Director Michael J. Devito acquired 11 shares of the company's stock in a transaction that occurred on Friday, April 24th. The stock was acquired at an average price of $6,699.50 per share, with a total value of $73,694.50. Following the purchase, the director directly owned 25 shares in the company, valued at approximately $167,487.50. This trade represents a 78.57% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Susan Williamson Ross sold 220 shares of the stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $8,000.00, for a total transaction of $1,760,000.00. Following the completion of the transaction, 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 a total of 1,120 shares of company stock valued at $9,012,736 in the last quarter. Insiders own 8.60% of the company's stock.

Hedge Funds Weigh In On NVR

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Atwater Malick LLC lifted its stake 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 last quarter. SkyOak Wealth LLC lifted its stake in NVR by 6.9% in the 3rd quarter. SkyOak Wealth LLC now owns 31 shares of the construction company's stock valued at $249,000 after purchasing an additional 2 shares during the last quarter. CoreCap Advisors LLC lifted its stake in NVR by 18.2% in the 3rd quarter. CoreCap Advisors LLC now owns 13 shares of the construction company's stock valued at $104,000 after purchasing an additional 2 shares during the last quarter. Deseret Mutual Benefit Administrators lifted its stake in NVR by 8.3% in the 3rd quarter. Deseret Mutual Benefit Administrators now owns 26 shares of the construction company's stock valued at $209,000 after purchasing an additional 2 shares during the last quarter. Finally, Drive Wealth Management LLC increased its position in NVR by 7.1% in the 3rd quarter. Drive Wealth Management LLC now owns 30 shares of the construction company's stock valued at $241,000 after acquiring an additional 2 shares during the period. Institutional investors own 83.67% of the company's stock.

NVR Company Profile

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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