NVR (NYSE:NVR) Hits New 1-Year Low – Should You Sell?

NVR, Inc. (NYSE:NVR) shares hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $7,207.42 and last traded at $7,206.50, with a volume of 13771 shares traded. The stock had previously closed at $7,365.72.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on NVR. Seaport Res Ptn cut shares of NVR from a “strong-buy” rating to a “hold” rating in a research report on Sunday, November 10th. JPMorgan Chase & Co. cut their target price on shares of NVR from $9,245.00 to $8,570.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 29th. Bank of America cut their target price on shares of NVR from $10,800.00 to $10,600.00 and set a “buy” rating on the stock in a research note on Wednesday, October 23rd. UBS Group upped their target price on shares of NVR from $8,750.00 to $8,900.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 29th. Finally, StockNews.com lowered shares of NVR from a “buy” rating to a “hold” rating in a research note on Thursday, November 7th. Four investment analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $9,356.67.

NVR Price Performance

The company has a market capitalization of $22.14 billion, a PE ratio of 14.26, a price-to-earnings-growth ratio of 2.51 and a beta of 1.20. The company has a debt-to-equity ratio of 0.21, a current ratio of 6.21 and a quick ratio of 3.54. The company’s 50 day simple moving average is $8,054.64 and its 200 day simple moving average is $8,800.81.

NVR (NYSE:NVR) last announced its quarterly earnings results on Tuesday, February 4th. The construction company reported $139.93 EPS for the quarter, beating the consensus estimate of $132.63 by $7.30. NVR had a net margin of 16.34% and a return on equity of 39.58%. As a group, sell-side analysts predict that NVR, Inc. will post 512.33 earnings per share for the current year.

NVR declared that its Board of Directors has approved a stock buyback plan on Wednesday, December 11th that authorizes the company to repurchase $750.00 million in outstanding shares. This repurchase authorization authorizes the construction company to repurchase up to 2.8% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at NVR

In other news, Director Thomas D. Eckert sold 143 shares of the firm’s stock in a transaction that occurred on Monday, February 10th. The shares were sold at an average price of $7,515.60, for a total transaction of $1,074,730.80. Following the transaction, the director now directly owns 1,050 shares in the company, valued at approximately $7,891,380. This trade represents a 11.99 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 7.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On NVR

Hedge funds have recently modified their holdings of the business. Blue Trust Inc. purchased a new position in shares of NVR during the third quarter worth approximately $39,000. Peak Financial Advisors LLC purchased a new position in shares of NVR during the fourth quarter worth approximately $1,235,000. JPMorgan Chase & Co. grew its position in shares of NVR by 18.8% during the third quarter. JPMorgan Chase & Co. now owns 13,920 shares of the construction company’s stock worth $136,580,000 after acquiring an additional 2,206 shares during the last quarter. Intech Investment Management LLC acquired a new stake in shares of NVR during the third quarter worth $9,341,000. Finally, Brown Brothers Harriman & Co. lifted its holdings in shares of NVR by 11.0% during the third quarter. Brown Brothers Harriman & Co. now owns 2,514 shares of the construction company’s stock worth $24,667,000 after purchasing an additional 250 shares during the period. 83.67% of the stock is currently owned by hedge funds and other institutional investors.

About NVR

NVR, Inc operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments. It engages in the construction and sale of 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.