NVR (NYSE:NVR) Stock Price Breaks Below Fifty Day Moving Average on Analyst Downgrade

Key Points

• NVR shares fell below their 50-day moving average after Morgan Stanley cut its price target from $5,058 to $4,864 and maintained an underweight rating; shares traded around $6,033.
• Analyst views are mixed, but the consensus rating is “Reduce”, with an average price target of $6,564.83; ratings include two buys, three holds and three sells.
• NVR’s latest quarterly results missed expectations: earnings were $89.45 per share versus a $102.77 estimate, while revenue of $2.42 billion fell 8.2% year over year and came in below forecasts.

NVR, Inc. (NYSE:NVR - Get Free Report)'s share price passed below its 50 day moving average during trading on Tuesday after Morgan Stanley lowered their price target on the stock from $5,058.00 to $4,864.00. The stock has a 50 day moving average of $6,109.73 and traded as low as $6,024.72. Morgan Stanley currently has an underweight rating on the stock. NVR shares last traded at $6,033.0590, with a volume of 38,437 shares changing hands.

Several other research firms have also recently commented on NVR. Zacks Research cut shares of NVR from a "hold" rating to a "strong sell" rating in a research report on Monday, September 21st. BTIG Research reiterated a "buy" rating on shares of NVR in a research report on Friday, October 23rd. Weiss Ratings raised shares of NVR from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, October 19th. Zelman & Associates upgraded shares of NVR from a "hold" rating to a "buy" rating in a report on Tuesday, July 7th. Finally, UBS Group lifted their price objective on NVR from $7,400.00 to $7,425.00 and gave the company a "neutral" rating in a research report on Friday, October 23rd. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, NVR presently has a consensus rating of "Reduce" and an average target price of $6,564.83.

Insider Activity at NVR

In other NVR news, Director George Oliver bought 63 shares of NVR stock in a transaction dated Friday, August 7th. The shares were purchased at an average cost of $6,431.51 per share, with a total value of $405,185.13. Following the transaction, the director directly owned 63 shares of the company's stock, valued at $405,185.13. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 8.60% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of NVR. Activest Wealth Management bought a new stake in shares of NVR in the 3rd quarter worth approximately $25,000. Clearstead Trust LLC bought a new position in NVR during the 2nd quarter valued at approximately $27,000. Trust Co. of Vermont bought a new position in NVR during the 2nd quarter valued at approximately $34,000. Livforsakringsbolaget Skandia Omsesidigt purchased a new position in NVR during the second quarter valued at $34,000. Finally, Global Retirement Partners LLC purchased a new position in NVR during the second quarter valued at $41,000. 83.67% of the stock is owned by hedge funds and other institutional investors.

NVR Stock Down 3.7%

The company has a debt-to-equity ratio of 0.27, a current ratio of 5.28 and a quick ratio of 2.24. The stock has a 50 day simple moving average of $6,109.73 and a 200-day simple moving average of $6,542.55. The firm has a market cap of $16.05 billion, a PE ratio of 16.63 and a beta of 0.93.

NVR (NYSE:NVR - Get Free Report) last released its earnings results on Thursday, October 22nd. The construction company reported $89.45 EPS for the quarter, missing analysts' consensus estimates of $102.77 by ($13.32). NVR had a return on equity of 29.23% and a net margin of 11.51%. The company had revenue of $2.42 billion during the quarter, compared to analysts' expectations of $2.57 billion. During the same period in the prior year, the company posted $112.33 earnings per share. The company's revenue was down 8.2% on a year-over-year basis. Sell-side analysts predict that NVR, Inc. will post 350.65 EPS for the current fiscal year.

About NVR

NVR, Inc is a homebuilding and mortgage banking company headquartered in Reston, Virginia. Through its homebuilding operations, the company designs and constructs single-family detached homes, townhomes and condominiums for buyers in a range of residential markets.

NVR markets homes primarily under the Ryan Homes, NVHomes and Heartland Homes brands. Ryan Homes generally serves a broad range of buyers, while NVHomes focuses on higher-end communities. The company's homebuilding operations serve selected markets across the Mid-Atlantic, Midwest and Southeast regions of the United States.

Through NVR Mortgage, the company provides mortgage loan origination services to many of its homebuyers.

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