NVR (NYSE:NVR) Sets New 12-Month Low – Time to Sell?

NVR, Inc. (NYSE:NVR) hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $5,930.00 and last traded at $5,942.35, with a volume of 18380 shares trading hands. The stock had previously closed at $6,154.14.

Analysts Set New Price Targets

Several brokerages have issued reports on NVR. Wall Street Zen cut shares of NVR from a “hold” rating to a “sell” rating in a research report on Saturday, April 25th. Zelman & Associates upgraded shares of NVR from a “sell” rating to a “hold” rating and set a $7,675.00 price target for the company in a research report on Thursday, January 29th. Bank of America decreased their price target on shares of NVR from $8,600.00 to $8,225.00 and set a “buy” rating for the company in a research report on Monday, April 20th. Seaport Research Partners restated a “sell” rating and issued a $5,664.00 price target on shares of NVR in a research report on Tuesday, April 7th. Finally, Truist Financial decreased their price target on shares of NVR from $7,100.00 to $6,600.00 and set a “hold” rating for the company in a research report on Thursday, April 23rd. Two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, NVR presently has an average rating of “Hold” and a consensus target price of $7,649.33.

NVR Stock Performance

The company has a current ratio of 6.21, a quick ratio of 3.71 and a debt-to-equity ratio of 0.24. The company’s 50-day simple moving average is $6,780.56 and its 200-day simple moving average is $7,245.76. The stock has a market capitalization of $16.51 billion, a price-to-earnings ratio of 14.49, a PEG ratio of 4.32 and a beta of 0.95.

NVR (NYSE:NVR) last posted its quarterly earnings data on Wednesday, April 22nd. The construction company reported $67.76 earnings per share for the quarter, missing the consensus estimate of $79.97 by ($12.21). NVR had a return on equity of 31.82% and a net margin of 12.93%.The firm had revenue of $1.91 billion for the quarter, compared to analyst estimates of $2.09 billion. During the same quarter last year, the company earned $94.83 earnings per share. The company’s quarterly revenue was down 21.7% compared to the same quarter last year. On average, analysts expect that NVR, Inc. will post 393.81 EPS for the current year.

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

Insider Transactions at NVR

In other news, Director Michael J. Devito acquired 11 shares of the firm’s stock in a transaction dated Friday, April 24th. The stock was bought at an average cost of $6,699.50 per share, for a total transaction of $73,694.50. Following the completion of the transaction, the director directly owned 25 shares in the company, valued at $167,487.50. This represents a 78.57% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Susan Williamson Ross sold 200 shares of the stock in a transaction on Friday, February 13th. The stock was sold at an average price of $7,922.06, for a total transaction of $1,584,412.00. Following the sale, the director owned 386 shares of the company’s stock, valued at approximately $3,057,915.16. This trade represents a 34.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,120 shares of company stock worth $9,012,736 over the last three months. 8.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On NVR

Several large investors have recently modified their holdings of the company. Capital Research Global Investors increased its position in shares of 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 buying an additional 551 shares during the period. Principal Financial Group Inc. increased its position in shares of 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 buying an additional 2,331 shares during the period. M&T Bank Corp increased its position in shares of 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 buying an additional 56,576 shares during the period. 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 worth $332,346,000 after buying an additional 36,592 shares during the period. Finally, JPMorgan Chase & Co. increased its position in shares of 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 buying an additional 1,718 shares during the period. 83.67% of the stock is currently owned by institutional investors and hedge funds.

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.