Zacks Investment Research upgraded shares of NVR (NYSE:NVR) from a hold rating to a strong-buy rating in a research note released on Thursday, Zacks.com reports. Zacks Investment Research currently has $3,642.00 price target on the construction company’s stock.
According to Zacks, “Shares of NVR have outperformed its industry so far this year. Although concerns surrounding affordability and inconsistent mortgage rates, along with increased tariffs have been plaguing the overall construction market over the last few quarters, the company continues to generate solid revenues from its homebuilding business. Moreover, disciplined business model, and focus on maximizing liquidity and minimizing risks along with rewarding shareholders are likely to generate more returns for the company going forward. Yet, rising land and labor costs are threatening margins as they limit homebuilders’ pricing power. Notably, although shares of NVR have outperformed its industry year to date, earnings estimates for 2019 and 2020 have remained unchanged over the past 60 days, limiting the upside potential for the stock.”
A number of other research firms also recently weighed in on NVR. Evercore ISI assumed coverage on shares of Helmerich & Payne in a research note on Thursday, June 6th. They set an outperform rating on the stock. Wells Fargo & Co assumed coverage on shares of Deckers Outdoor in a research report on Tuesday, April 23rd. They issued a market perform rating and a $163.00 price objective for the company. Finally, Buckingham Research increased their price objective on shares of NVR from $3,580.00 to $3,860.00 and gave the stock a buy rating in a research report on Tuesday, July 9th. Four equities research analysts have rated the stock with a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock has an average rating of Buy and an average target price of $3,359.86.
NYSE:NVR opened at $3,489.63 on Thursday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.03 and a current ratio of 4.04. The stock has a market capitalization of $12.54 billion, a P/E ratio of 17.14, a P/E/G ratio of 1.64 and a beta of 0.66. NVR has a fifty-two week low of $2,040.71 and a fifty-two week high of $3,528.32. The stock’s 50 day moving average is $3,343.75.
NVR (NYSE:NVR) last posted its quarterly earnings results on Monday, April 22nd. The construction company reported $47.64 earnings per share for the quarter, topping the Zacks’ consensus estimate of $34.45 by $13.19. The company had revenue of $1.64 billion for the quarter, compared to the consensus estimate of $1.48 billion. NVR had a net margin of 11.45% and a return on equity of 46.85%. NVR’s revenue was up 7.5% on a year-over-year basis. During the same quarter last year, the firm posted $39.34 earnings per share. As a group, research analysts anticipate that NVR will post 198.36 earnings per share for the current year.
NVR announced that its board has initiated a stock repurchase program on Thursday, May 2nd that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the construction company to reacquire up to 2.6% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.
In other NVR news, Director Alexandra A. Jung acquired 70 shares of the company’s stock in a transaction dated Monday, May 20th. The stock was bought at an average price of $3,285.00 per share, with a total value of $229,950.00. Following the completion of the transaction, the director now directly owns 95 shares of the company’s stock, valued at $312,075. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Paul C. Saville sold 7,100 shares of the stock in a transaction on Wednesday, May 15th. The stock was sold at an average price of $3,298.44, for a total transaction of $23,418,924.00. Following the completion of the sale, the chief executive officer now directly owns 117,170 shares of the company’s stock, valued at approximately $386,478,214.80. The disclosure for this sale can be found here. Insiders sold 25,320 shares of company stock valued at $83,126,269 in the last three months. Company insiders own 11.10% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in the company. Zurcher Kantonalbank Zurich Cantonalbank increased its position in shares of NVR by 0.7% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 688 shares of the construction company’s stock worth $1,904,000 after acquiring an additional 5 shares in the last quarter. Advisory Services Network LLC grew its holdings in NVR by 4.4% during the 4th quarter. Advisory Services Network LLC now owns 191 shares of the construction company’s stock valued at $465,000 after purchasing an additional 8 shares in the last quarter. Los Angeles Capital Management & Equity Research Inc. grew its holdings in NVR by 9.3% during the 1st quarter. Los Angeles Capital Management & Equity Research Inc. now owns 117 shares of the construction company’s stock valued at $324,000 after purchasing an additional 10 shares in the last quarter. National Asset Management Inc. grew its holdings in NVR by 10.5% during the 1st quarter. National Asset Management Inc. now owns 105 shares of the construction company’s stock valued at $291,000 after purchasing an additional 10 shares in the last quarter. Finally, IMS Capital Management grew its holdings in NVR by 4.0% during the 1st quarter. IMS Capital Management now owns 260 shares of the construction company’s stock valued at $719,000 after purchasing an additional 10 shares in the last quarter. 78.83% of the stock is owned by institutional investors.
NVR, Inc operates as a homebuilder in the United States. It primarily constructs and sells single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers.
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