NVR (NVR) Raised to “Buy” at Zacks Investment Research

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 firm presently has a $3,218.00 price target on the construction company’s stock. Zacks Investment Research‘s target price suggests a potential upside of 5.16% 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.”

NVR has been the subject of a number of other research reports. 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 research note on Wednesday, January 17th. Zelman & Associates raised NVR from a “hold” rating to a “buy” rating in a research note on Friday, October 20th. ValuEngine raised NVR from a “hold” rating to a “buy” rating in a research note on Sunday, December 31st. Finally, Wells Fargo & Co reaffirmed a “market perform” rating on shares of NVR in a research note on Friday, October 20th. Three research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. The company has a consensus rating of “Buy” and a consensus price target of $3,064.50.

Shares of NVR (NVR) opened at $3,060.01 on Tuesday. The stock has a market cap of $10,606.14, a PE ratio of 24.05, a PEG ratio of 1.00 and a beta of 0.54. NVR has a 52-week low of $1,872.96 and a 52-week high of $3,700.00. 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 (NYSE:NVR) last announced its earnings results 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). The business had revenue of $1.82 billion during the quarter, compared to the consensus estimate of $2.01 billion. NVR had a net margin of 8.70% and a return on equity of 38.72%. The company’s revenue was up 3.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $37.80 EPS. sell-side analysts forecast that NVR will post 188.66 EPS for the current year.

NVR declared that its board has approved a share buyback plan on Tuesday, December 12th that authorizes the company to repurchase $300.00 million in shares. This repurchase authorization authorizes the construction company to buy shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

In related news, Director Eddie Arthur Grier sold 400 shares of the business’s stock in a transaction dated Tuesday, February 6th. The stock was sold at an average price of $2,968.07, for a total value of $1,187,228.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 11.30% of the stock is owned by insiders.

Hedge funds have recently bought and sold shares of the stock. BlackRock Inc. raised its stake in NVR by 4.5% during the fourth quarter. BlackRock Inc. now owns 398,368 shares of the construction company’s stock worth $1,397,562,000 after acquiring an additional 17,136 shares in the last quarter. TIAA CREF Investment Management LLC raised its stake in NVR by 3.0% during the fourth quarter. TIAA CREF Investment Management LLC now owns 67,777 shares of the construction company’s stock worth $237,777,000 after acquiring an additional 1,963 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in NVR by 5.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 52,548 shares of the construction company’s stock worth $184,352,000 after acquiring an additional 2,873 shares in the last quarter. Renaissance Technologies LLC raised its stake in NVR by 161.5% during the fourth quarter. Renaissance Technologies LLC now owns 51,180 shares of the construction company’s stock worth $179,551,000 after acquiring an additional 31,610 shares in the last quarter. Finally, Acadian Asset Management LLC raised its stake in NVR by 47.4% during the fourth quarter. Acadian Asset Management LLC now owns 48,238 shares of the construction company’s stock worth $169,231,000 after acquiring an additional 15,512 shares in the last quarter. 79.33% of the stock is owned by institutional investors and hedge funds.

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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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