Share Repurchase Plan Initiated by NVR (NYSE:NVR) Board

NVR (NYSE:NVR) announced that its Board of Directors has approved a share buyback plan on Tuesday, May 7th, RTT News reports. The company plans to buyback $750.00 million in outstanding shares. This buyback authorization allows the construction company to reacquire up to 3.1% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the stock. StockNews.com upgraded shares of NVR from a “hold” rating to a “buy” rating in a research note on Wednesday, April 24th. UBS Group raised their price target on shares of NVR from $7,600.00 to $8,175.00 and gave the company a “neutral” rating in a research report on Wednesday, April 24th.

NVR Price Performance

NVR opened at $7,670.91 on Friday. The company’s 50-day simple moving average is $7,750.96 and its two-hundred day simple moving average is $7,084.05. The company has a debt-to-equity ratio of 0.21, a quick ratio of 3.97 and a current ratio of 6.52. The stock has a market capitalization of $24.30 billion, a P/E ratio of 15.99, a P/E/G ratio of 3.20 and a beta of 1.13. NVR has a 52-week low of $5,210.49 and a 52-week high of $8,211.40.

NVR (NYSE:NVR) last released its quarterly earnings data on Tuesday, April 23rd. The construction company reported $116.41 earnings per share for the quarter, beating the consensus estimate of $103.97 by $12.44. The firm had revenue of $2.29 billion during the quarter, compared to analysts’ expectations of $2.25 billion. NVR had a net margin of 17.33% and a return on equity of 38.54%. The firm’s quarterly revenue was up 7.3% on a year-over-year basis. During the same period in the previous year, the company earned $99.89 earnings per share. As a group, analysts predict that NVR will post 487.53 EPS for the current year.

Insiders Place Their Bets

In related news, Director William Grady Rosier sold 600 shares of the company’s stock in a transaction on Wednesday, May 8th. The shares were sold at an average price of $7,665.63, for a total transaction of $4,599,378.00. Following the sale, the director now owns 1,701 shares of the company’s stock, valued at $13,039,236.63. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. In other news, Chairman Paul C. Saville sold 1,500 shares of the firm’s stock in a transaction dated Monday, February 12th. The shares were sold at an average price of $7,510.05, for a total value of $11,265,075.00. Following the sale, the chairman now directly owns 106,860 shares in the company, valued at approximately $802,523,943. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director William Grady Rosier sold 600 shares of the firm’s stock in a transaction dated Wednesday, May 8th. The shares were sold at an average price of $7,665.63, for a total transaction of $4,599,378.00. Following the completion of the sale, the director now owns 1,701 shares in the company, valued at $13,039,236.63. The disclosure for this sale can be found here. Insiders sold a total of 5,802 shares of company stock worth $43,672,724 over the last three months. 7.00% of the stock is currently owned by company insiders.

NVR Company Profile

NVR, Inc operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of 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.