NVR (NVR) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of NVR (NYSE:NVR) from a buy rating to a hold rating in a report released 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.”

A number of other equities analysts also recently issued reports on the company. UBS Group raised their price objective on NVR from $3,450.00 to $3,750.00 and gave the stock a neutral rating in a research report on Wednesday, January 17th. ValuEngine downgraded NVR from a buy rating to a hold rating in a research report on Friday, October 20th. Wells Fargo & Co restated a market perform rating on shares of NVR in a research report on Friday, October 20th. Finally, Zelman & Associates upgraded 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 assigned a buy rating to the stock. The company currently has a consensus rating of Buy and a consensus target price of $3,064.50.

NVR (NVR) opened at $3,060.01 on Monday. NVR has a 1 year low of $1,872.96 and a 1 year high of $3,700.00. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.67 and a current ratio of 3.62. The stock has a market capitalization of $10,759.36, a PE ratio of 20.57, a PEG ratio of 1.01 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 Zacks’ 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 the consensus estimate of $2.01 billion. During the same quarter last year, the business earned $37.80 earnings per share. NVR’s revenue was up 3.6% compared to the same quarter last year. research analysts predict that NVR will post 188.66 EPS for the current fiscal year.

NVR announced that its board has approved a stock repurchase program on Tuesday, December 12th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the construction company to reacquire shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

In related news, Director Eddie Arthur Grier sold 400 shares of the firm’s stock in a transaction that occurred on Tuesday, February 6th. The stock was sold at an average price of $2,968.07, for a total transaction of $1,187,228.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 11.30% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cerebellum GP LLC acquired a new stake in NVR during the fourth quarter worth approximately $133,000. Toronto Dominion Bank acquired a new stake in NVR during the second quarter worth approximately $104,000. Checchi Capital Advisers LLC acquired a new stake in NVR during the fourth quarter worth approximately $200,000. Commerce Bank acquired a new stake in NVR during the fourth quarter worth approximately $207,000. Finally, Assetmark Inc. acquired a new stake in NVR during the fourth quarter worth approximately $210,000. 79.33% of the stock is owned by institutional investors and hedge funds.

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About NVR

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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