NVR (NYSE:NVR) Upgraded to “Strong-Buy” at Zacks Investment Research

NVR (NYSE:NVR) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Thursday, Zacks.com reports. The firm currently has a $3,642.00 price target on the construction company’s stock. Zacks Investment Research‘s target price suggests 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.”

Several other analysts also recently commented on NVR. Evercore ISI initiated coverage on Helmerich & Payne in a report on Thursday, June 6th. They set an “outperform” rating for the company. Wells Fargo & Co initiated coverage on Deckers Outdoor in a report on Tuesday, April 23rd. They set a “market perform” rating and a $163.00 target price for the company. Finally, Buckingham Research increased their target price on NVR from $3,580.00 to $3,860.00 and gave the stock a “buy” rating in a report on Tuesday. Four equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $3,359.86.

Shares of NVR stock opened at $3,489.63 on Thursday. The firm has a market cap of $12.46 billion, a P/E ratio of 17.04, a PEG ratio of 1.63 and a beta of 0.66. NVR has a 12 month low of $2,040.71 and a 12 month high of $3,528.32. The company has a debt-to-equity ratio of 0.31, a current ratio of 4.04 and a quick ratio of 2.03. The business’s fifty day simple moving average is $3,343.75.

NVR (NYSE:NVR) last issued its quarterly earnings data on Monday, April 22nd. The construction company reported $47.64 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $34.45 by $13.19. The business had revenue of $1.64 billion for the quarter, compared to the consensus estimate of $1.48 billion. NVR had a return on equity of 46.85% and a net margin of 11.45%. The firm’s revenue was up 7.5% compared to the same quarter last year. During the same quarter last year, the business posted $39.34 EPS. Equities research analysts predict that NVR will post 198.36 EPS for the current fiscal year.

NVR declared that its board has initiated a share buyback program on Thursday, May 2nd that permits the company to buyback $300.00 million in shares. This buyback authorization permits the construction company to reacquire up to 2.6% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its shares are undervalued.

In other news, CEO Paul C. Saville sold 3,000 shares of the firm’s stock in a transaction dated Friday, May 17th. The stock was sold at an average price of $3,342.38, for a total value of $10,027,140.00. Following the completion of the transaction, the chief executive officer now owns 113,770 shares in the company, valued at approximately $380,262,572.60. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Paul C. Saville sold 1,200 shares of the firm’s stock in a transaction dated Thursday, May 30th. The shares were sold at an average price of $3,236.84, for a total value of $3,884,208.00. Following the completion of the transaction, the chief executive officer now owns 113,970 shares of the company’s stock, valued at approximately $368,902,654.80. The disclosure for this sale can be found here. In the last quarter, insiders have sold 25,320 shares of company stock valued at $83,126,269. Corporate insiders own 11.10% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Weaver Consulting Group bought a new position in shares of NVR in the 1st quarter valued at about $34,000. Howe & Rusling Inc. acquired a new stake in NVR in the 1st quarter valued at about $47,000. Penserra Capital Management LLC acquired a new stake in NVR in the 1st quarter valued at about $66,000. Cullen Frost Bankers Inc. acquired a new stake in NVR in the 1st quarter valued at about $69,000. Finally, Captrust Financial Advisors acquired a new stake in NVR in the 4th quarter valued at about $78,000. Institutional investors own 78.83% of the company’s stock.

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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