NVR (NYSE:NVR) Trading Down 6.9% – Should You Sell?

NVR, Inc. (NYSE:NVR)’s share price dropped 6.9% during trading on Friday . The stock traded as low as $7,575.77 and last traded at $7,534.4380. Approximately 27,621 shares were traded during trading, a decline of 11% from the average daily volume of 30,938 shares. The stock had previously closed at $8,096.16.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on NVR. BTIG Research initiated coverage on shares of NVR in a report on Monday, December 1st. They issued a “buy” rating and a $9,022.00 price objective for the company. Wall Street Zen raised NVR from a “sell” rating to a “hold” rating in a research note on Saturday, January 31st. Weiss Ratings reiterated a “hold (c+)” rating on shares of NVR in a research report on Thursday, January 22nd. Zelman & Associates upgraded NVR from a “sell” rating to a “hold” rating and set a $7,675.00 price objective for the company in a report on Thursday, January 29th. Finally, UBS Group set a $8,100.00 target price on NVR in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $8,279.40.

NVR Stock Performance

The company has a debt-to-equity ratio of 0.24, a current ratio of 6.21 and a quick ratio of 3.71. The company has a market cap of $20.96 billion, a price-to-earnings ratio of 17.18, a P/E/G ratio of 2.41 and a beta of 1.03. The firm has a fifty day simple moving average of $7,571.39 and a 200 day simple moving average of $7,710.76.

NVR (NYSE:NVR) last issued its earnings results on Wednesday, January 28th. The construction company reported $121.54 EPS for the quarter, beating analysts’ consensus estimates of $105.42 by $16.12. The business had revenue of $2.74 billion during the quarter, compared to analyst estimates of $2.41 billion. NVR had a return on equity of 34.28% and a net margin of 13.27%.NVR’s revenue was down 5.2% on a year-over-year basis. During the same period in the prior year, the company posted $139.93 earnings per share. On average, sell-side analysts expect that NVR, Inc. will post 505.2 earnings per share for the current fiscal year.

NVR announced that its Board of Directors has approved a share buyback program on Wednesday, February 11th that permits the company to repurchase $750.00 million in shares. This repurchase authorization permits the construction company to repurchase up to 3.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at NVR

In other NVR news, CAO Matthew B. Kelpy sold 500 shares of NVR stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $8,100.00, for a total value of $4,050,000.00. Following the transaction, the chief accounting officer owned 208 shares of the company’s stock, valued at approximately $1,684,800. The trade was a 70.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Susan Williamson Ross sold 200 shares of the company’s stock in a transaction that occurred on Thursday, February 5th. The shares were sold at an average price of $8,091.62, for a total transaction of $1,618,324.00. Following the completion of the transaction, the director owned 386 shares of the company’s stock, valued at $3,123,365.32. This trade represents a 34.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 920 shares of company stock valued at $7,428,324 in the last quarter. 7.00% of the stock is currently owned by corporate insiders.

Institutional Trading of NVR

A number of institutional investors have recently modified their holdings of NVR. Oakworth Capital Inc. bought a new stake in NVR during the 4th quarter worth about $36,000. Blue Trust Inc. boosted its position in NVR by 150.0% during the second quarter. Blue Trust Inc. now owns 5 shares of the construction company’s stock valued at $37,000 after purchasing an additional 3 shares during the last quarter. Assetmark Inc. increased its position in shares of NVR by 50.0% during the 2nd quarter. Assetmark Inc. now owns 6 shares of the construction company’s stock worth $44,000 after purchasing an additional 2 shares during the last quarter. State of Wyoming acquired a new stake in shares of NVR in the 2nd quarter valued at approximately $44,000. Finally, USA Financial Formulas boosted its holdings in shares of NVR by 75.0% in the 4th quarter. USA Financial Formulas now owns 7 shares of the construction company’s stock valued at $51,000 after buying an additional 3 shares during the last quarter. 83.67% of the stock is currently owned by institutional investors.

About NVR

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.