NVR (NYSE:NVR) Shares Down 6.1% on Disappointing Earnings

NVR, Inc. (NYSE:NVR)’s stock price was down 6.1% during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $5,919.25 and last traded at $5,964.6250. 3,019 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 27,767 shares. The stock had previously closed at $6,349.28.

The construction company reported $83.96 earnings per share for the quarter, topping analysts’ consensus estimates of $0.90 by $83.06. The firm had revenue of $2.34 billion during the quarter, compared to the consensus estimate of $2.40 billion. NVR had a return on equity of 30.23% and a net margin of 12.26%.The business’s revenue was down 10.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $108.54 EPS.

NVR News Summary

Here are the key news stories impacting NVR this week:

• Negative Sentiment: NVR’s second-quarter results missed expectations on revenue and earnings, with EPS falling to $83.96 from $108.54 a year ago and revenue dropping about 10% as fewer settlements and lower pricing weighed on results. NVR, INC. ANNOUNCES SECOND QUARTER RESULTS
• Negative Sentiment: Homebuilding margin pressure was a key concern, with higher lot costs, pricing pressure, and contract land deposit impairments cutting profitability despite improved orders and backlog growth. NVR Q2 Earnings Miss Estimates on Margin Pressure, Stock Down
• Negative Sentiment: Truist Financial lowered its price target on NVR to $6,400 from $6,600 and kept a hold rating, signaling more cautious expectations for the shares. Benzinga
• Negative Sentiment: Zacks Research downgraded NVR to “strong sell” and trimmed several future earnings estimates, reinforcing concerns that near-term earnings momentum may stay weak. Zacks.com

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Zacks Research downgraded shares of NVR from a “hold” rating to a “strong sell” rating in a research report on Tuesday. Seaport Research Partners reissued a “sell” rating and set a $5,664.00 price target on shares of NVR in a research report on Tuesday, April 7th. Truist Financial reduced their price objective on shares of NVR from $6,600.00 to $6,400.00 and set a “hold” rating for the company in a research note on Friday. UBS Group set a $7,400.00 price objective on NVR in a report on Friday. Finally, Weiss Ratings downgraded NVR from a “hold (c)” rating to a “sell (d+)” rating in a research report on Thursday, May 7th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $7,224.20.

Hedge Funds Weigh In On NVR

Several hedge funds and other institutional investors have recently made changes to their positions in the company. AustralianSuper Pty Ltd bought a new position in shares of NVR in the 4th quarter valued at about $4,835,000. Norges Bank bought a new stake in shares of NVR in the 4th quarter valued at about $311,496,000. Tudor Investment Corp ET AL raised its holdings in shares of NVR by 1,245.3% in the 3rd quarter. Tudor Investment Corp ET AL now owns 1,009 shares of the construction company’s stock valued at $8,107,000 after purchasing an additional 934 shares during the period. Luma Capital S.A. SPF acquired a new stake in NVR in the 4th quarter valued at about $9,874,000. Finally, Elevatus Welath Management acquired a new stake in NVR in the 4th quarter valued at about $1,707,000. 83.67% of the stock is owned by institutional investors.

NVR Price Performance

The company has a quick ratio of 2.67, a current ratio of 5.19 and a debt-to-equity ratio of 0.26. The firm has a market cap of $17.35 billion, a P/E ratio of 16.66, a PEG ratio of 15.80 and a beta of 0.90. The business has a fifty day moving average of $6,370.66 and a 200 day moving average of $6,786.91.

NVR Company Profile

NVR, Inc is a U.S.-based homebuilding and mortgage banking company that designs, constructs and sells single-family detached homes, townhomes and condominiums. The company operates primarily through its homebuilding business and a mortgage banking subsidiary, providing financing and related closing services to its homebuyers. NVR’s homebuilding activities include land development, community planning, model home sales and construction management aimed at a range of buyer demographics.

Its homes are marketed under recognizable regional brands, including Ryan Homes and NVHomes, along with other market-specific trade names, and are offered across multiple geographic markets in the United States.