NVR (NYSE:NVR) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday. The brokerage currently has a $3,218.00 price objective on the construction company’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 10.17% from the stock’s current price.
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.”
Several other brokerages have also weighed in on NVR. Wells Fargo & Co reaffirmed a “market perform” rating on shares of NVR in a research report on Friday, October 20th. ValuEngine lowered shares of NVR from a “buy” rating to a “hold” rating in a research report on Friday, October 20th. UBS Group started coverage on shares of NVR in a research report on Wednesday, October 25th. They set a “neutral” rating and a $3,450.00 price objective on the stock. Finally, Zelman & Associates raised shares of NVR from a “hold” rating to a “buy” rating in a research report on Friday, October 20th. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company. The company currently has an average rating of “Buy” and an average target price of $3,064.50.
NVR (NYSE:NVR) last posted its quarterly earnings results on Thursday, January 25th. The construction company reported $43.41 EPS for the quarter, missing the consensus estimate of $48.95 by ($5.54). The company had revenue of $1.82 billion for the quarter, compared to analyst estimates of $2.01 billion. NVR had a return on equity of 38.72% and a net margin of 8.70%. The business’s revenue for the quarter was up 3.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $37.80 earnings per share. analysts predict that NVR will post 188.66 EPS for the current fiscal year.
NVR declared that its board has approved a share buyback plan on Tuesday, December 12th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the construction company to reacquire shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its stock is undervalued.
In other news, Director Eddie Arthur Grier sold 400 shares of NVR stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $2,968.07, for a total value of $1,187,228.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 11.30% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Advisor Group Inc. increased its position in NVR by 13.9% during the second quarter. Advisor Group Inc. now owns 82 shares of the construction company’s stock worth $197,000 after acquiring an additional 10 shares during the period. Dimensional Fund Advisors LP boosted its stake in NVR by 1.1% during the second quarter. Dimensional Fund Advisors LP now owns 20,643 shares of the construction company’s stock worth $49,750,000 after buying an additional 221 shares in the last quarter. Stifel Financial Corp boosted its stake in NVR by 4.1% during the second quarter. Stifel Financial Corp now owns 429 shares of the construction company’s stock worth $1,035,000 after buying an additional 17 shares in the last quarter. Royal Bank of Canada boosted its stake in NVR by 1.4% during the second quarter. Royal Bank of Canada now owns 1,727 shares of the construction company’s stock worth $4,163,000 after buying an additional 24 shares in the last quarter. Finally, Macquarie Group Ltd. acquired a new stake in NVR during the second quarter worth $603,000. 79.33% of the stock is currently owned by institutional investors.
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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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