NVR, Inc. (NVR) Lifted to “Strong-Buy” at Zacks Investment Research
NVR, Inc. (NYSE:NVR) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Tuesday. The firm currently has a $3,707.00 target price on the construction company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 16.21% from the stock’s previous close.
According to Zacks, “NVR exhibited stellar performances in third-quarter 2017 wherein earnings surpassed the Zacks Consensus Estimate by 5.3% and increased 34% from the year-ago level. The upside was primarily attributable to solid order growth across the board and gross margin expansion. Total revenues (Homebuilding & Mortgage Banking fees) increased 8% year over year, driven by higher homebuilding revenues (up 8%) and mortgage-banking fees (13.6%). New orders, settlements and backlog of homes also climbed 21%, 6% and 16%, respectively, in the quarter. Gross margin expanded 230 basis points on a modest improvement in pricing along with moderating construction costs. NVR is poised to gain traction in 2017 on the current positive housing scenario. Meanwhile, NVR's shares have significantly outperformed its industry so far this year. This price performance is backed by the company’s impressive earnings surprise history.”
Other analysts have also issued reports about the company. Bank of America Corporation reissued a “buy” rating and set a $2,690.00 price target (up from $2,485.00) on shares of NVR in a research note on Wednesday, June 28th. MKM Partners reissued a “neutral” rating and set a $2,600.00 price target (up from $1,900.00) on shares of NVR in a research note on Tuesday, July 25th. ValuEngine raised NVR from a “hold” rating to a “buy” rating in a research note on Friday, September 1st. Wells Fargo & Company reissued a “market perform” rating on shares of NVR in a research note on Friday. Finally, Zelman & Associates raised NVR from a “hold” rating to a “buy” rating in a research note on Friday. Four investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $2,999.00.
Shares of NVR (NYSE NVR) traded up 0.41% on Tuesday, reaching $3203.01. 6,580 shares of the company traded hands. NVR has a one year low of $1,478.04 and a one year high of $3,294.50. The firm’s 50 day moving average is $2,869.39 and its 200 day moving average is $2,534.44. The company has a market capitalization of $11.99 billion, a P/E ratio of 25.34 and a beta of 0.66.
NVR (NYSE:NVR) last released its quarterly earnings data on Thursday, October 19th. The construction company reported $38.02 earnings per share for the quarter, beating the consensus estimate of $35.77 by $2.25. The business had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.71 billion. NVR had a return on equity of 38.23% and a net margin of 9.22%. NVR’s revenue was up 8.5% compared to the same quarter last year. During the same period last year, the firm posted $28.46 earnings per share. Analysts expect that NVR will post $140.65 earnings per share for the current fiscal year.
In other news, Director Timothy M. Donahue sold 325 shares of the firm’s stock in a transaction dated Wednesday, August 16th. The stock was sold at an average price of $2,730.07, for a total transaction of $887,272.75. Following the completion of the transaction, the director now directly owns 843 shares in the company, valued at $2,301,449.01. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Eddie Arthur Grier sold 165 shares of the firm’s stock in a transaction dated Thursday, August 31st. The stock was sold at an average price of $2,682.26, for a total value of $442,572.90. Following the transaction, the director now owns 340 shares of the company’s stock, valued at $911,968.40. The disclosure for this sale can be found here. 11.30% of the stock is owned by company insiders.
Several institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. raised its position in shares of NVR by 8.7% during the second quarter. BlackRock Inc. now owns 379,835 shares of the construction company’s stock worth $915,632,000 after acquiring an additional 30,517 shares during the last quarter. Vanguard Group Inc. raised its position in shares of NVR by 9.5% during the second quarter. Vanguard Group Inc. now owns 309,547 shares of the construction company’s stock worth $746,196,000 after acquiring an additional 26,827 shares during the last quarter. FMR LLC raised its position in shares of NVR by 23.3% during the second quarter. FMR LLC now owns 150,964 shares of the construction company’s stock worth $363,915,000 after acquiring an additional 28,513 shares during the last quarter. State Street Corp raised its position in shares of NVR by 17.7% during the second quarter. State Street Corp now owns 139,294 shares of the construction company’s stock worth $335,772,000 after acquiring an additional 20,928 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of NVR by 14.0% during the second quarter. Goldman Sachs Group Inc. now owns 51,573 shares of the construction company’s stock worth $124,322,000 after acquiring an additional 6,330 shares during the last quarter. Institutional investors own 80.20% of the company’s stock.
NVR Company Profile
NVR, Inc is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings. The Company’s segments are Homebuilding Mid Atlantic, Homebuilding North East, Homebuilding Mid East, Homebuilding South East and Mortgage Banking. Its Homebuilding Mid Atlantic segment operates in various geographic regions, which include Maryland, Virginia, West Virginia, Delaware and Washington, District of Columbia (DC).
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