NVR (NYSE:NVR) Raised to Strong-Buy at Zacks Investment Research

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Zacks Investment Research upgraded shares of NVR (NYSE:NVR) from a hold rating to a strong-buy rating in a research note released on Thursday morning, Zacks.com reports. Zacks Investment Research currently has $3,642.00 price target on the construction company’s stock.

According to Zacks, “Shares of NVR have outperformed its industry so far this year. Although concerns surrounding affordability and inconsistent mortgage rates, along with increased tariffs have been plaguing the overall construction market over the last few quarters, the company continues to generate solid revenues from its homebuilding business. Moreover, disciplined business model, and focus on maximizing liquidity and minimizing risks along with rewarding shareholders are likely to generate more returns for the company going forward. Yet, rising land and labor costs are threatening margins as they limit homebuilders’ pricing power. Notably, although shares of NVR have outperformed its industry year to date, earnings estimates for 2019 and 2020 have remained unchanged over the past 60 days, limiting the upside potential for the stock.”

A number of other research analysts also recently issued reports on NVR. Buckingham Research raised their price target on shares of NVR from $3,580.00 to $3,860.00 and gave the stock a buy rating in a research report on Tuesday, July 9th. Evercore ISI started coverage on shares of Helmerich & Payne in a research report on Thursday, June 6th. They issued an outperform rating on the stock. Finally, Wells Fargo & Co started coverage on shares of Deckers Outdoor in a research report on Tuesday, April 23rd. They issued a market perform rating and a $163.00 price objective on the stock. Four investment analysts have rated the stock with a hold rating, two have given a buy rating and one has issued a strong buy rating to the company. NVR currently has a consensus rating of Buy and an average price target of $3,359.86.

NVR stock opened at $3,489.63 on Thursday. The business has a 50-day simple moving average of $3,343.75. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.03 and a current ratio of 4.04. NVR has a 1 year low of $2,040.71 and a 1 year high of $3,528.32. The company has a market cap of $12.54 billion, a P/E ratio of 17.14, a P/E/G ratio of 1.64 and a beta of 0.66.

NVR (NYSE:NVR) last posted its quarterly earnings results on Monday, April 22nd. The construction company reported $47.64 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $34.45 by $13.19. NVR had a net margin of 11.45% and a return on equity of 46.85%. The company had revenue of $1.64 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same period last year, the firm posted $39.34 EPS. The company’s revenue for the quarter was up 7.5% on a year-over-year basis. As a group, equities analysts expect that NVR will post 198.36 EPS for the current year.

NVR announced that its Board of Directors has authorized a stock buyback plan on Thursday, May 2nd that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the construction company to purchase up to 2.6% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

In other news, Director Alexandra A. Jung acquired 70 shares of the business’s stock in a transaction that occurred on Monday, May 20th. The shares were purchased at an average cost of $3,285.00 per share, for a total transaction of $229,950.00. Following the transaction, the director now directly owns 95 shares in the company, valued at approximately $312,075. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Paul C. Saville sold 2,900 shares of NVR stock in a transaction dated Monday, May 13th. The shares were sold at an average price of $3,279.75, for a total transaction of $9,511,275.00. Following the completion of the sale, the chief executive officer now owns 117,170 shares in the company, valued at $384,288,307.50. The disclosure for this sale can be found here. Over the last quarter, insiders sold 25,320 shares of company stock worth $83,126,269. 11.10% of the stock is currently owned by insiders.

Large investors have recently modified their holdings of the stock. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in NVR by 0.7% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 688 shares of the construction company’s stock valued at $1,904,000 after buying an additional 5 shares during the period. Advisory Services Network LLC increased its stake in NVR by 4.4% during the 4th quarter. Advisory Services Network LLC now owns 191 shares of the construction company’s stock valued at $465,000 after buying an additional 8 shares during the period. Los Angeles Capital Management & Equity Research Inc. increased its stake in NVR by 9.3% during the 1st quarter. Los Angeles Capital Management & Equity Research Inc. now owns 117 shares of the construction company’s stock valued at $324,000 after buying an additional 10 shares during the period. National Asset Management Inc. increased its stake in NVR by 10.5% during the 1st quarter. National Asset Management Inc. now owns 105 shares of the construction company’s stock valued at $291,000 after buying an additional 10 shares during the period. Finally, IMS Capital Management increased its stake in NVR by 4.0% during the 1st quarter. IMS Capital Management now owns 260 shares of the construction company’s stock valued at $719,000 after buying an additional 10 shares during the period. Hedge funds and other institutional investors own 78.83% of the company’s stock.

NVR Company Profile

NVR, Inc operates as a homebuilder in the United States. It primarily constructs and sells single-family detached homes, townhomes, and condominium buildings under the Ryan Homes, NVHomes, and Heartland Homes names. The company markets its Ryan Homes products to first-time and first-time move-up buyers; and NVHomes and Heartland Homes products to move-up and luxury buyers.

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