Seaport Research Partners Reaffirms Sell Rating for NVR (NYSE:NVR)

Key Points

• Seaport Research Partners reiterated a "sell" rating on NVR with a $5,664 price target, implying about a 15.7% downside from the current share price.
• Most analysts differ from Seaport — the consensus rating is Hold with a consensus price target of $8,182.83, and several firms have recently moved NVR from Sell to Hold with higher targets.
• NVR reported a big EPS beat but quarterly revenue was down 5.2% year-over-year, the board authorized a $750 million buyback (≈3.3% of shares), while insiders have been net sellers and institutional ownership is about 83.7%.

NVR (NYSE:NVR - Get Free Report)'s stock had its "sell" rating reiterated by Seaport Research Partners in a research report issued on Tuesday,Benzinga reports. They currently have a $5,664.00 price objective on the construction company's stock. Seaport Research Partners' target price would suggest a potential downside of 15.67% from the stock's current price.

Other research analysts have also issued reports about the company. Zelman & Associates upgraded NVR from a "sell" rating to a "hold" rating and set a $7,675.00 price target on the stock in a research report on Thursday, January 29th. UBS Group set a $8,100.00 price target on NVR in a research report on Friday, February 13th. Wall Street Zen upgraded NVR from a "sell" rating to a "hold" rating in a research report on Saturday, January 31st. Truist Financial assumed coverage on NVR in a research report on Wednesday, March 4th. They issued a "hold" rating and a $7,700.00 price target on the stock. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of NVR in a research report on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, NVR currently has a consensus rating of "Hold" and a consensus price target of $8,182.83.

NVR Stock Up 0.8%

Shares of NVR opened at $6,716.74 on Tuesday. The firm has a market capitalization of $18.67 billion, a price-to-earnings ratio of 15.36, a PEG ratio of 2.27 and a beta of 1.07. The company has a debt-to-equity ratio of 0.24, a quick ratio of 3.71 and a current ratio of 6.21. The business's fifty day moving average price is $7,168.30 and its two-hundred day moving average price is $7,403.10. NVR has a 52 week low of $6,301.02 and a 52 week high of $8,618.28.

NVR (NYSE:NVR - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The construction company reported $121.54 EPS for the quarter, beating analysts' consensus estimates of $105.42 by $16.12. The firm had revenue of $2.74 billion for the quarter, compared to analyst estimates of $2.41 billion. NVR had a return on equity of 34.28% and a net margin of 13.27%.The business's quarterly revenue was down 5.2% compared to the same quarter last year. During the same period last year, the company earned $139.93 EPS. On average, analysts predict that NVR will post 505.2 earnings per share for the current year.

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

Insider Buying and Selling at NVR

In other NVR news, CAO Matthew B. Kelpy sold 500 shares of NVR stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $8,100.00, for a total transaction of $4,050,000.00. Following the transaction, the chief accounting officer directly owned 208 shares in the company, valued at approximately $1,684,800. The trade was a 70.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Susan Williamson Ross sold 220 shares of NVR stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $8,000.00, for a total value of $1,760,000.00. Following the transaction, the director owned 386 shares in the company, valued at approximately $3,088,000. This represents a 36.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,120 shares of company stock worth $9,012,736 over the last 90 days. 7.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Capital Research Global Investors lifted its holdings in NVR by 0.4% during the fourth quarter. Capital Research Global Investors now owns 133,554 shares of the construction company's stock worth $973,979,000 after acquiring an additional 551 shares in the last quarter. Principal Financial Group Inc. lifted its holdings in NVR by 4.0% during the third quarter. Principal Financial Group Inc. now owns 60,307 shares of the construction company's stock worth $484,546,000 after acquiring an additional 2,331 shares in the last quarter. M&T Bank Corp lifted its holdings in NVR by 34,923.5% during the fourth quarter. M&T Bank Corp now owns 56,738 shares of the construction company's stock worth $413,777,000 after acquiring an additional 56,576 shares in the last quarter. Corient Private Wealth LLC lifted its holdings in NVR by 407.5% during the fourth quarter. Corient Private Wealth LLC now owns 45,572 shares of the construction company's stock worth $332,346,000 after acquiring an additional 36,592 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its holdings in NVR by 4.1% during the third quarter. JPMorgan Chase & Co. now owns 43,318 shares of the construction company's stock worth $348,051,000 after acquiring an additional 1,718 shares in the last quarter. 83.67% of the stock is currently 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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