NVR (NYSE:NVR) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Thursday, Zacks.com reports. The brokerage presently has a $3,642.00 target price on the construction company’s stock. Zacks Investment Research‘s price target points to a potential upside of 4.37% from the stock’s current price.
According to Zacks, “Shares of NVR have outperformed its industry so far this year. Although concerns surrounding affordability and inconsistent mortgage rates, along with increased tariffs have been plaguing the overall construction market over the last few quarters, the company continues to generate solid revenues from its homebuilding business. Moreover, disciplined business model, and focus on maximizing liquidity and minimizing risks along with rewarding shareholders are likely to generate more returns for the company going forward. Yet, rising land and labor costs are threatening margins as they limit homebuilders’ pricing power. Notably, although shares of NVR have outperformed its industry year to date, earnings estimates for 2019 and 2020 have remained unchanged over the past 60 days, limiting the upside potential for the stock.”
NVR has been the subject of several other reports. Buckingham Research boosted their target price on shares of NVR from $3,580.00 to $3,860.00 and gave the company a “buy” rating in a research report on Tuesday. Evercore ISI initiated coverage on shares of Helmerich & Payne in a research report on Thursday, June 6th. They set an “outperform” rating for the company. Finally, Wells Fargo & Co initiated coverage on shares of Deckers Outdoor in a research report on Tuesday, April 23rd. They set a “market perform” rating and a $163.00 target price for the company. Four analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company’s stock. NVR presently has an average rating of “Buy” and an average target price of $3,359.86.
NVR (NYSE:NVR) last announced its earnings results on Monday, April 22nd. The construction company reported $47.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $34.45 by $13.19. The company had revenue of $1.64 billion during the quarter, compared to analyst estimates of $1.48 billion. NVR had a net margin of 11.45% and a return on equity of 46.85%. The firm’s quarterly revenue was up 7.5% compared to the same quarter last year. During the same period in the previous year, the business posted $39.34 earnings per share. Analysts predict that NVR will post 198.36 EPS for the current fiscal year.
NVR announced that its Board of Directors has initiated a stock repurchase plan on Thursday, May 2nd that allows the company to buyback $300.00 million in shares. This buyback authorization allows the construction company to purchase up to 2.6% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its stock is undervalued.
In other NVR news, insider Jeffrey D. Martchek sold 500 shares of NVR stock in a transaction that occurred on Thursday, April 25th. The shares were sold at an average price of $3,180.04, for a total transaction of $1,590,020.00. Following the transaction, the insider now owns 4,658 shares of the company’s stock, valued at $14,812,626.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Manuel H. Johnson sold 300 shares of NVR stock in a transaction that occurred on Wednesday, April 24th. The shares were sold at an average price of $3,183.56, for a total transaction of $955,068.00. Following the transaction, the director now directly owns 2,003 shares in the company, valued at approximately $6,376,670.68. The disclosure for this sale can be found here. Insiders have sold 25,320 shares of company stock valued at $83,126,269 over the last 90 days. 11.10% of the stock is currently owned by company insiders.
Large investors have recently modified their holdings of the business. PNC Financial Services Group Inc. grew its position in NVR by 6.0% during the 4th quarter. PNC Financial Services Group Inc. now owns 351 shares of the construction company’s stock worth $855,000 after acquiring an additional 20 shares during the last quarter. Raymond James & Associates grew its position in NVR by 61.2% during the 4th quarter. Raymond James & Associates now owns 1,327 shares of the construction company’s stock worth $3,234,000 after acquiring an additional 504 shares during the last quarter. Nomura Asset Management Co. Ltd. grew its position in NVR by 6.2% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 600 shares of the construction company’s stock worth $1,462,000 after acquiring an additional 35 shares during the last quarter. Hsbc Holdings PLC grew its position in NVR by 334.6% during the 4th quarter. Hsbc Holdings PLC now owns 2,551 shares of the construction company’s stock worth $6,215,000 after acquiring an additional 1,964 shares during the last quarter. Finally, Dimensional Fund Advisors LP grew its position in NVR by 3.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 21,562 shares of the construction company’s stock worth $52,546,000 after acquiring an additional 805 shares during the last quarter. 78.83% of the stock is currently owned by institutional investors and hedge funds.
NVR Company Profile
NVR, Inc operates as a homebuilder in the United States. It primarily constructs and sells 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.
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