Zacks Investment Research lowered shares of NVR (NYSE:NVR) from a hold rating to a sell rating in a research report released on Tuesday.
According to Zacks, “Shares of NVR have declined 31.8% in a year's time. Earnings estimates for 2019 have also been trending downward over the last 60 days, raising anaysts' concern over the stock's earnings growth prospect. Meanwhile, rising interest and mortgage rates raise concerns. Prices of lumber, a major input in the construction of houses, is also increasing due to the imposition of U.S. import duties on Canadian lumber. However, NVR’s disciplined business model and focus on maximizing liquidity and minimizing risk are likely to generate more returns for shareholders. 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. Although the company's solid backlog is expected to drive growth we wait for better visibility.”
Several other brokerages also recently weighed in on NVR. ValuEngine downgraded NVR from a sell rating to a strong sell rating in a research report on Friday, September 28th. Bank of America cut NVR from a buy rating to a neutral rating and set a $2,850.00 target price for the company. in a report on Thursday, October 18th. Finally, Wells Fargo & Co reaffirmed a market perform rating and issued a $2,410.00 target price (down previously from $3,780.00) on shares of NVR in a report on Friday, October 19th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the company’s stock. The stock has an average rating of Hold and an average price target of $3,104.33.
NVR (NYSE:NVR) last announced its quarterly earnings data on Thursday, October 18th. The construction company reported $48.28 earnings per share for the quarter, missing the consensus estimate of $50.94 by ($2.66). NVR had a return on equity of 47.30% and a net margin of 10.10%. The business had revenue of $1.81 billion for the quarter, compared to the consensus estimate of $1.84 billion. During the same quarter in the prior year, the company earned $38.02 earnings per share. NVR’s quarterly revenue was up 8.8% compared to the same quarter last year. As a group, equities research analysts anticipate that NVR will post 184.39 earnings per share for the current fiscal year.
NVR announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, December 12th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the construction company to buy up to 3.4% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.
In other news, insider Jeffrey D. Martchek sold 1,000 shares of the stock in a transaction dated Thursday, November 1st. The stock was sold at an average price of $2,345.00, for a total value of $2,345,000.00. Following the completion of the sale, the insider now owns 5,198 shares of the company’s stock, valued at $12,189,310. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Melquiades R. Martinez purchased 60 shares of the firm’s stock in a transaction dated Friday, November 2nd. The stock was bought at an average cost of $2,359.50 per share, with a total value of $141,570.00. Following the purchase, the director now owns 191 shares of the company’s stock, valued at approximately $450,664.50. The disclosure for this purchase can be found here. In the last three months, insiders sold 26,163 shares of company stock valued at $57,909,385. Insiders own 12.00% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NVR. Flagship Harbor Advisors LLC acquired a new stake in NVR during the second quarter worth approximately $109,000. Atlantic Trust LLC acquired a new stake in NVR during the third quarter worth approximately $124,000. Cerebellum GP LLC grew its stake in NVR by 57.8% during the third quarter. Cerebellum GP LLC now owns 71 shares of the construction company’s stock worth $175,000 after purchasing an additional 26 shares during the period. WealthPLAN Partners LLC acquired a new stake in NVR during the second quarter worth approximately $220,000. Finally, Algert Global LLC acquired a new stake in NVR during the third quarter worth approximately $220,000. 78.28% of the stock is owned by institutional investors and hedge funds.
NVR, Inc engages in the construction and sale of single-family detached homes, townhomes and condominium buildings. It operates through the following segments: Homebuilding and . The Homebuilding segment sells and builds homes under the trade names Ryan Homes, NVHomes, Fox Ridge Homes and Heartland Homes.
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