NVR (NYSE:NVR) Lowered to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of NVR (NYSE:NVR) from a buy rating to a hold rating in a report published on Tuesday, Zacks.com reports. They currently have $5,217.00 price objective on the construction company’s stock.

According to Zacks, “NVR’s disciplined business model, and focus on maximizing liquidity and minimizing risks are likely to generate more returns for its shareholders in the long term. Moreover, solid housing market fundamentals in the United States has been driving its performance. Higher demand for new homes backed by declining mortgage rates and low inventory levels bodes well. Second-quarter end backlog, on a unit and dollar basis, was up 19% and 35% from the year-ago quarter to 12,627 units and $5.41 billion, respectively. NVR’s superior return on equity (ROE) is also indicative of its growth potential. Shares of NVR have outperformed the industry so far this year. However, impacts of coronavirus pandemic and supply related constraints are growing concerns. Notably, earnings estimates for 2021 has remained unchanged over the past 30 days.”

NVR opened at $4,966.72 on Tuesday. The company has a debt-to-equity ratio of 0.50, a current ratio of 5.89 and a quick ratio of 3.57. The company has a market cap of $17.71 billion, a price-to-earnings ratio of 17.26 and a beta of 1.02. The firm has a 50 day simple moving average of $5,098.99 and a 200 day simple moving average of $4,926.06. NVR has a fifty-two week low of $3,823.31 and a fifty-two week high of $5,332.08.

NVR (NYSE:NVR) last issued its quarterly earnings data on Tuesday, July 20th. The construction company reported $82.45 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $72.43 by $10.02. The firm had revenue of $2.22 billion during the quarter, compared to analysts’ expectations of $2.21 billion. NVR had a net margin of 13.51% and a return on equity of 37.37%. The business’s revenue for the quarter was up 40.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $42.50 earnings per share. As a group, analysts expect that NVR will post 348.1 EPS for the current year.

NVR declared that its board has authorized a stock buyback plan on Wednesday, August 4th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the construction company to buy up to 2.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

In related news, Director Manuel H. Johnson sold 1,000 shares of the stock in a transaction on Friday, August 27th. The shares were sold at an average price of $5,143.21, for a total transaction of $5,143,210.00. Following the completion of the transaction, the director now owns 1,400 shares in the company, valued at $7,200,494. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Eugene James Bredow sold 92 shares of the company’s stock in a transaction on Friday, July 30th. The stock was sold at an average price of $5,260.00, for a total transaction of $483,920.00. Following the sale, the insider now directly owns 918 shares in the company, valued at $4,828,680. The disclosure for this sale can be found here. Insiders sold 1,392 shares of company stock valued at $7,205,130 in the last quarter. Corporate insiders own 9.00% of the company’s stock.

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. boosted its stake in shares of NVR by 1.1% in the 1st quarter. BlackRock Inc. now owns 295,670 shares of the construction company’s stock valued at $1,392,882,000 after purchasing an additional 3,188 shares in the last quarter. Capital International Investors raised its holdings in NVR by 0.6% in the 2nd quarter. Capital International Investors now owns 174,007 shares of the construction company’s stock valued at $865,389,000 after buying an additional 1,118 shares during the last quarter. Diamond Hill Capital Management Inc. raised its holdings in NVR by 3.7% in the 2nd quarter. Diamond Hill Capital Management Inc. now owns 118,565 shares of the construction company’s stock valued at $589,659,000 after buying an additional 4,257 shares during the last quarter. Principal Financial Group Inc. raised its holdings in NVR by 0.6% in the 2nd quarter. Principal Financial Group Inc. now owns 84,544 shares of the construction company’s stock valued at $420,462,000 after buying an additional 544 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD raised its holdings in NVR by 3.3% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 31,333 shares of the construction company’s stock valued at $147,608,000 after buying an additional 995 shares during the last quarter. Hedge funds and other institutional investors own 82.30% of the company’s stock.

NVR Company Profile

NVR, Inc engages in the construction and sale of single-family detached homes, townhomes and condominium buildings. It operates through the following segments: Homebuilding and Mortgage Banking. The Homebuilding segment sells and builds homes under the trade names Ryan Homes, NVHomes, Fox Ridge Homes and Heartland Homes.

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