NVR (NYSE:NVR) Reaches New 12-Month Low – What’s Next?

Shares of NVR, Inc. (NYSE:NVR) reached a new 52-week low during trading on Thursday . The stock traded as low as $6,463.25 and last traded at $6,446.9080, with a volume of 4115 shares. The stock had previously closed at $6,610.91.

Analyst Ratings Changes

A number of brokerages have recently issued reports on NVR. Truist Financial began coverage on shares of NVR in a research note on Wednesday, March 4th. They issued a “hold” rating and a $7,700.00 price objective for the company. Zelman & Associates upgraded shares of NVR from a “sell” rating to a “hold” rating and set a $7,675.00 target price on the stock in a research report on Thursday, January 29th. BTIG Research assumed coverage on shares of NVR in a research note on Monday, December 1st. They issued a “buy” rating and a $9,022.00 price target for the company. UBS Group set a $8,100.00 price target on shares of NVR in a research report on Friday, February 13th. Finally, Wall Street Zen raised NVR from a “sell” rating to a “hold” rating in a research note on Saturday, January 31st. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $8,182.83.

NVR Trading Up 0.3%

The company has a debt-to-equity ratio of 0.24, a current ratio of 6.21 and a quick ratio of 3.71. The firm’s 50 day moving average price is $7,484.65 and its 200 day moving average price is $7,604.75. The stock has a market capitalization of $18.02 billion, a P/E ratio of 14.77, a P/E/G ratio of 2.19 and a beta of 1.04.

NVR (NYSE:NVR) last posted its earnings results on Wednesday, January 28th. The construction company reported $121.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $105.42 by $16.12. NVR had a return on equity of 34.28% and a net margin of 13.27%.The company had revenue of $2.74 billion for the quarter, compared to analysts’ expectations of $2.41 billion. During the same period last year, the firm earned $139.93 earnings per share. NVR’s quarterly revenue was down 5.2% on a year-over-year basis. As a group, equities research analysts expect that NVR, Inc. will post 505.2 earnings per share for the current fiscal year.

NVR announced that its board has authorized a stock repurchase program on Wednesday, February 11th that allows the company to repurchase $750.00 million in shares. This repurchase authorization allows the construction company to reacquire up to 3.3% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Susan Williamson Ross sold 200 shares of NVR stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $7,922.06, for a total value of $1,584,412.00. Following the sale, the director directly owned 386 shares in the company, valued at approximately $3,057,915.16. This trade represents a 34.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Matthew B. Kelpy sold 500 shares of the business’s stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $8,100.00, for a total value of $4,050,000.00. Following the transaction, the chief accounting officer directly owned 208 shares in the company, valued at $1,684,800. This trade represents a 70.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,120 shares of company stock worth $9,012,736. Corporate insiders own 7.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. M&T Bank Corp lifted its position in shares of NVR by 34,923.5% in the 4th quarter. M&T Bank Corp now owns 56,738 shares of the construction company’s stock worth $413,777,000 after purchasing an additional 56,576 shares during the period. Norges Bank purchased a new position in shares of NVR during the fourth quarter valued at about $311,496,000. Corient Private Wealth LLC increased its position in shares of NVR by 407.5% during the fourth quarter. Corient Private Wealth LLC now owns 45,572 shares of the construction company’s stock valued at $332,346,000 after buying an additional 36,592 shares during the period. Close Asset Management Ltd bought a new position in NVR in the third quarter worth about $148,939,000. Finally, Citadel Advisors LLC raised its stake in NVR by 318.4% in the third quarter. Citadel Advisors LLC now owns 19,215 shares of the construction company’s stock worth $154,386,000 after buying an additional 14,623 shares in the last quarter. 83.67% of the stock is owned by hedge funds and other 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.