NVR (NYSE:NVR) Shares Down 6.1% on Disappointing Earnings

Key Points

• NVR shares fell 6.1% after the company reported weaker-than-expected quarterly earnings, with the stock trading as low as $5,919.25 during the session.
• The company posted EPS of $83.96, missing analyst estimates of $89.98 and sharply below the $108.54 per share it earned in the same quarter last year.
• Sentiment has turned more cautious, with multiple analyst downgrades and lower price targets, including Zacks cutting NVR to strong sell and UBS reducing its target to $7,700.

Shares of NVR, Inc. (NYSE:NVR - Get Free Report) traded down 6.1% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $5,919.25 and last traded at $5,964.6250. Approximately 3,019 shares were traded during mid-day trading, a decline of 89% from the average session volume of 27,767 shares. The stock had previously closed at $6,349.28.

The construction company reported $83.96 earnings per share for the quarter, missing the consensus estimate of $89.98 by ($6.02). NVR had a return on equity of 32.66% and a net margin of 12.93%.During the same quarter in the prior year, the firm posted $108.54 earnings per share.

Trending Headlines about NVR

Here are the key news stories impacting NVR this week:

• Negative Sentiment: Zacks Research downgraded NVR from hold to strong sell, which is likely weighing on investor sentiment. Zacks.com
• Negative Sentiment: The firm lowered earnings estimates for FY2027, Q1 2028, Q2 2027, Q4 2027 and FY2028, suggesting expectations for future profitability have weakened. Zacks.com
• Neutral Sentiment: Zacks nudged its Q3 2027 EPS estimate higher, but the increase was modest and does little to offset the broader downward revisions. Zacks.com
• Neutral Sentiment: A separate note said Bank of America also lowered expectations for NVR’s stock price, reinforcing the cautious tone around the name. American Banking News

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on NVR. UBS Group dropped their price target on 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. Wall Street Zen upgraded shares of NVR from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Weiss Ratings lowered shares of NVR from a "hold (c)" rating to a "sell (d+)" rating in a report on Thursday, May 7th. Seaport Research Partners restated a "sell" rating and set a $5,664.00 price objective on shares of NVR in a research report on Tuesday, April 7th. Finally, Zacks Research downgraded shares of NVR from a "hold" rating to a "strong sell" rating in a report on Tuesday. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $7,478.50.

Insider Transactions at NVR

In other NVR news, Director Michael J. Devito purchased 11 shares of NVR stock in a transaction on Friday, April 24th. The shares were acquired at an average cost of $6,699.50 per share, for a total transaction of $73,694.50. Following the completion of the transaction, the director directly owned 25 shares of the company's stock, valued at approximately $167,487.50. The trade was a 78.57% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. 8.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On NVR

Institutional investors and hedge funds have recently made changes to their positions in the business. Wedge Capital Management L L P NC increased its holdings in shares of NVR by 27.5% in 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 buying an additional 323 shares during the period. Tema ETFs LLC boosted its holdings in NVR by 38.1% during the 2nd quarter. Tema ETFs LLC now owns 58 shares of the construction company's stock valued at $395,000 after acquiring an additional 16 shares during the period. 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 acquiring an additional 763 shares during the last quarter. Wealthcare Advisory Partners LLC grew its position in NVR by 1.0% during the 2nd quarter. Wealthcare Advisory Partners LLC now owns 203 shares of the construction company's stock worth $1,383,000 after acquiring an additional 2 shares during the last quarter. Finally, Everhart Financial Group Inc. increased its stake in NVR by 31.0% in the 2nd quarter. Everhart Financial Group Inc. now owns 76 shares of the construction company's stock worth $518,000 after purchasing an additional 18 shares during the period. Institutional investors own 83.67% of the company's stock.

NVR Stock Down 6.0%

The company has a current ratio of 5.19, a quick ratio of 2.67 and a debt-to-equity ratio of 0.26. The stock has a 50 day simple moving average of $6,343.46 and a 200 day simple moving average of $6,797.21. The firm has a market capitalization of $16.12 billion, a PE ratio of 14.56, a PEG ratio of 16.23 and a beta of 0.90.

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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