Zacks Investment Research Downgrades NVR (NVR) to Hold

NVR (NYSE:NVR) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.

According to Zacks, “NVR exhibited mixed performances in fourth-quarter 2017 wherein earnings missed the Zacks Consensus Estimate by 11.3% and decreased 24% from the year-ago level. However, total revenues (Homebuilding & Mortgage Banking fees) increased 3.7% year over year, on account of higher housing revenues (up 21%). New orders, settlements and backlog of homes also climbed 18%, 5% and 23.9%, respectively, in the quarter. Gross margin expanded 150 basis points on a modest improvement in pricing along with moderating construction costs. Meanwhile, NVR's shares have outperformed its industry in the past year. Estimates for 2018 has also moved up significantly over the last 60 days, reflecting analysts’ optimism surrounding the stock.”

Other research analysts also recently issued reports about the company. UBS Group boosted their price target on NVR from $3,450.00 to $3,750.00 and gave the company a “neutral” rating in a report on Wednesday, January 17th. ValuEngine upgraded NVR from a “hold” rating to a “buy” rating in a report on Sunday, December 31st. Zelman & Associates upgraded NVR from a “hold” rating to a “buy” rating in a report on Friday, October 20th. Finally, Wells Fargo & Co reiterated a “market perform” rating on shares of NVR in a report on Friday, October 20th. Four equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. NVR presently has an average rating of “Hold” and a consensus target price of $3,186.75.

Shares of NVR (NYSE:NVR) traded up $73.51 during trading on Monday, hitting $2,873.51. The company had a trading volume of 30,055 shares, compared to its average volume of 37,195. The company has a debt-to-equity ratio of 0.37, a current ratio of 3.62 and a quick ratio of 1.67. NVR has a 1 year low of $1,872.96 and a 1 year high of $3,700.00. The firm has a market cap of $10,334.82, a P/E ratio of 22.64, a P/E/G ratio of 0.97 and a beta of 0.54.

NVR (NYSE:NVR) last issued its quarterly earnings data on Thursday, January 25th. The construction company reported $43.41 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $48.95 by ($5.54). NVR had a return on equity of 38.72% and a net margin of 8.70%. The company had revenue of $1.82 billion for the quarter, compared to analyst estimates of $2.01 billion. During the same quarter in the prior year, the firm earned $37.80 earnings per share. The company’s revenue for the quarter was up 3.6% on a year-over-year basis. equities research analysts expect that NVR will post 188.66 earnings per share for the current fiscal year.

NVR declared that its Board of Directors has authorized a stock buyback plan on Tuesday, December 12th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the construction company to repurchase shares of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

In other news, Director Eddie Arthur Grier sold 400 shares of the business’s stock in a transaction on Tuesday, February 6th. The shares were sold at an average price of $2,968.07, for a total transaction of $1,187,228.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 11.30% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Arrowstreet Capital Limited Partnership boosted its position in NVR by 304.3% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 35,125 shares of the construction company’s stock worth $123,226,000 after purchasing an additional 26,437 shares during the period. Janus Henderson Group PLC boosted its position in NVR by 331.9% during the 3rd quarter. Janus Henderson Group PLC now owns 30,783 shares of the construction company’s stock worth $87,883,000 after purchasing an additional 23,656 shares during the period. BlackRock Inc. boosted its position in NVR by 4.5% during the 4th quarter. BlackRock Inc. now owns 398,368 shares of the construction company’s stock worth $1,397,562,000 after purchasing an additional 17,136 shares during the period. Acadian Asset Management LLC boosted its position in NVR by 47.4% during the 4th quarter. Acadian Asset Management LLC now owns 48,238 shares of the construction company’s stock worth $169,231,000 after purchasing an additional 15,512 shares during the period. Finally, Capital Growth Management LP boosted its position in NVR by 70.0% during the 3rd quarter. Capital Growth Management LP now owns 32,300 shares of the construction company’s stock worth $92,216,000 after purchasing an additional 13,300 shares during the period. 79.33% of the stock is owned by institutional investors.

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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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