NVR (NYSE:NVR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.

According to Zacks, “NVR is poised to gain traction in 2018 on the current positive housing scenario. Unlike other homebuilders, NVR’s sole business is selling and building quality homes by typically acquiring finished building lots, without the risk of owning and developing land in a cyclical industry. NVR’s disciplined business model and focus on maximizing liquidity and minimizing risk are likely to generate more returns for shareholders. Though homebuilding gross margin was 19.2% in 2017, an improvement of 170 bps year over year, gross margin pressure is likely to pose a threat over the next several quarters owing to cost pressure. Moreover, shares of the company have underperformed the industry in the past year. Estimates for 2018 have also remain unchanged over the past 60 days, limiting upside potential for the stock.”

NVR has been the subject of a number of other reports. ValuEngine downgraded shares of NVR from a “hold” rating to a “sell” rating in a research note on Monday, July 30th. MKM Partners cut their price objective on shares of NVR to $3,100.00 and set a “neutral” rating on the stock in a report on Friday, August 3rd. Finally, JPMorgan Chase & Co. restated a “$2,892.50” rating and issued a $3,100.00 price objective (down previously from $3,450.00) on shares of NVR in a report on Monday, July 23rd. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and one has assigned a buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $3,341.50.

NVR stock opened at $2,543.25 on Wednesday. NVR has a 1 year low of $2,520.10 and a 1 year high of $3,700.00. The stock has a market capitalization of $9.28 billion, a P/E ratio of 17.97, a P/E/G ratio of 0.90 and a beta of 0.48. The company has a quick ratio of 1.40, a current ratio of 3.67 and a debt-to-equity ratio of 0.37.

NVR (NYSE:NVR) last released its quarterly earnings results on Friday, July 20th. The construction company reported $49.05 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $46.21 by $2.84. NVR had a net margin of 9.86% and a return on equity of 45.41%. The company had revenue of $1.75 billion during the quarter, compared to the consensus estimate of $1.82 billion. During the same period in the prior year, the firm earned $35.19 earnings per share. NVR’s revenue was up 15.7% on a year-over-year basis. equities analysts anticipate that NVR will post 189.18 earnings per share for the current fiscal year.

NVR announced that its Board of Directors has authorized a share buyback program on Wednesday, August 1st that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the construction company to buy up to 3% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its shares are undervalued.

In other NVR news, Director Eddie Arthur Grier sold 108 shares of the company’s stock in a transaction dated Wednesday, August 1st. The shares were sold at an average price of $2,722.12, for a total value of $293,988.96. Following the sale, the director now owns 193 shares in the company, valued at $525,369.16. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Jeffrey D. Martchek sold 1,000 shares of the company’s stock in a transaction dated Tuesday, August 28th. The stock was sold at an average price of $2,713.28, for a total transaction of $2,713,280.00. Following the completion of the sale, the insider now owns 5,198 shares in the company, valued at approximately $14,103,629.44. The disclosure for this sale can be found here. In the last 90 days, insiders sold 2,108 shares of company stock worth $5,734,359. Corporate insiders own 11.30% of the company’s stock.

Several large investors have recently bought and sold shares of NVR. Moneta Group Investment Advisors LLC purchased a new stake in shares of NVR during the first quarter valued at approximately $109,000. Flagship Harbor Advisors LLC purchased a new stake in shares of NVR during the second quarter valued at approximately $109,000. IBM Retirement Fund purchased a new stake in shares of NVR during the first quarter valued at approximately $202,000. Kovack Advisors Inc. purchased a new stake in shares of NVR during the first quarter valued at approximately $207,000. Finally, WealthPLAN Partners LLC purchased a new stake in shares of NVR during the second quarter valued at approximately $220,000. Hedge funds and other institutional investors own 78.05% of the company’s stock.

NVR Company Profile

NVR, Inc operates as a homebuilder in the United States. The company operates through four segments: Mid Atlantic, North East, Mid East, and South East. It primarily constructs and sells single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names.

Featured Article: Tariff

Get a free copy of the Zacks research report on NVR (NVR)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for NVR Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVR and related companies with MarketBeat.com's FREE daily email newsletter.