NVR (NYSE:NVR) Stock Price Down 6.9% – Should You Sell?

NVR, Inc. (NYSE:NVR)’s stock price was down 6.9% during mid-day trading on Friday . The stock traded as low as $7,575.77 and last traded at $7,534.4380. Approximately 27,621 shares changed hands during trading, a decline of 11% from the average daily volume of 30,938 shares. The stock had previously closed at $8,096.16.

Wall Street Analysts Forecast Growth

NVR has been the subject of a number of research analyst reports. Zelman & Associates upgraded 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. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of NVR in a report on Thursday, January 22nd. UBS Group set a $8,100.00 price target on NVR in a research report on Friday. BTIG Research started coverage on NVR in a report on Monday, December 1st. They issued a “buy” rating and a $9,022.00 price objective for the company. Finally, Wall Street Zen upgraded NVR from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, NVR currently has a consensus rating of “Moderate Buy” and an average target price of $8,279.40.

NVR Stock Down 7.2%

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 stock has a 50 day simple moving average of $7,571.73 and a 200 day simple moving average of $7,713.96. The firm has a market capitalization of $21.33 billion, a PE ratio of 17.18, a PEG ratio of 2.60 and a beta of 1.03.

NVR (NYSE:NVR) last issued 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 net margin of 13.27% and a return on equity of 34.28%. The firm had revenue of $2.74 billion for the quarter, compared to analysts’ expectations of $2.41 billion. During the same quarter last year, the business earned $139.93 earnings per share. The business’s revenue was down 5.2% on a year-over-year basis. As a group, sell-side analysts forecast that NVR, Inc. will post 505.2 earnings per share for the current year.

NVR declared that its board has initiated a share repurchase plan on Wednesday, February 11th that permits the company to repurchase $750.00 million in outstanding shares. This repurchase authorization permits the construction company to buy up to 3.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Insider Transactions at NVR

In other NVR news, CAO Matthew B. Kelpy sold 500 shares of the stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $8,100.00, for a total value of $4,050,000.00. Following the completion of the sale, the chief accounting officer owned 208 shares in the company, valued at approximately $1,684,800. This trade represents a 70.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Susan Williamson Ross sold 200 shares of NVR stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $8,091.62, for a total value of $1,618,324.00. Following the completion of the sale, the director owned 386 shares in the company, valued at approximately $3,123,365.32. This represents a 34.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 920 shares of company stock valued at $7,428,324. 7.00% of the stock is currently owned by company insiders.

Institutional Trading of NVR

Several large investors have recently added to or reduced their stakes in NVR. Principal Financial Group Inc. grew its stake in shares of NVR by 4.0% during the 3rd quarter. Principal Financial Group Inc. now owns 60,307 shares of the construction company’s stock valued at $484,546,000 after acquiring an additional 2,331 shares during the period. Nordea Investment Management AB lifted its holdings in NVR by 262.2% during the third quarter. Nordea Investment Management AB now owns 938 shares of the construction company’s stock valued at $7,522,000 after purchasing an additional 679 shares in the last quarter. iA Global Asset Management Inc. bought a new position in shares of NVR in the third quarter worth approximately $691,000. Rakuten Investment Management Inc. purchased a new stake in shares of NVR in the third quarter worth $51,896,000. Finally, Amundi raised its position in shares of NVR by 6.9% during the 2nd quarter. Amundi now owns 12,092 shares of the construction company’s stock valued at $93,937,000 after purchasing an additional 781 shares during the period. Institutional investors own 83.67% of the company’s stock.

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.