NVR (NYSE:NVR) Cut to Underperform at Bank of America

Bank of America cut shares of NVR (NYSE:NVR) from a buy rating to an underperform rating in a research report sent to investors on Friday, Marketbeat.com reports. Bank of America currently has $5,900.00 price target on the construction company’s stock.

NVR has been the subject of a number of other research reports. UBS Group dropped their target price on shares of NVR from $7,700.00 to $7,400.00 and set a “neutral” rating for the company in a research report on Friday, July 24th. Wall Street Zen cut shares of NVR from a “hold” rating to a “sell” rating in a research note on Saturday, October 3rd. Weiss Ratings upgraded shares of NVR from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, October 19th. Truist Financial reduced their price target on shares of NVR from $6,600.00 to $6,400.00 and set a “hold” rating on the stock in a report on Friday, July 24th. Finally, Zelman & Associates upgraded shares of NVR from a “hold” rating to a “buy” rating in a research note on Tuesday, July 7th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Reduce” and a consensus price target of $6,597.17.

NVR Stock Down 0.2%

NYSE NVR opened at $5,974.60 on Friday. NVR has a 12 month low of $5,501.01 and a 12 month high of $8,200.00. The company has a current ratio of 5.28, a quick ratio of 2.24 and a debt-to-equity ratio of 0.27. The stock has a market cap of $15.89 billion, a PE ratio of 16.47 and a beta of 0.90. The stock’s 50 day moving average is $6,164.59 and its 200 day moving average is $6,299.96.

NVR (NYSE:NVR) last announced its quarterly earnings data on Thursday, October 22nd. The construction company reported $89.45 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $102.77 by ($13.32). NVR had a net margin of 11.51% and a return on equity of 29.23%. The company had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $2.57 billion. During the same period last year, the business earned $112.33 earnings per share. The company’s quarterly revenue was down 8.2% compared to the same quarter last year. Research analysts predict that NVR will post 361.98 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director George Oliver acquired 63 shares of NVR stock in a transaction on Friday, August 7th. The shares were acquired at an average price of $6,431.51 per share, with a total value of $405,185.13. Following the purchase, the director directly owned 63 shares in the company, valued at $405,185.13. The trade was a ? increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 8.60% of the stock is owned by corporate insiders.

Institutional Trading of NVR

Several hedge funds have recently modified their holdings of the company. Activest Wealth Management purchased a new position in shares of NVR in the third quarter valued at $25,000. Clearstead Trust LLC bought a new stake in NVR in the second quarter worth $27,000. Trust Co. of Vermont purchased a new stake in NVR during the second quarter valued at $34,000. Livforsakringsbolaget Skandia Omsesidigt purchased a new stake in NVR during the second quarter valued at $34,000. Finally, Global Retirement Partners LLC purchased a new stake in NVR during the second quarter valued at $41,000. 83.67% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting NVR

Here are the key news stories impacting NVR this week:

• Positive Sentiment: NVR’s third-quarter backlog increased approximately 10%, providing some future revenue visibility despite current market weakness.
• Neutral Sentiment: The company reported third-quarter net income of $248.6 million, or $89.45 per diluted share, while maintaining solid profitability with a reported 31.02% return on equity and 12.26% net margin. NVR third-quarter results
• Negative Sentiment: Third-quarter EPS of $89.45 missed consensus estimates of roughly $102.77–$106.11, while revenue of about $2.42 billion fell short of expectations near $2.57 billion. Revenue declined 8.2% year over year, and EPS fell from $112.33 in the prior-year quarter. NVR Q3 earnings and revenue report
• Negative Sentiment: Results were pressured by fewer home settlements, softer pricing and lower margins, signaling that high mortgage costs and cautious homebuyers are weakening near-term demand.
• Negative Sentiment: Bank of America downgraded NVR from Buy to Underperform and cut its price target to $5,900, citing weak orders, margin pressure, rising construction costs and reduced demand. The firm expects these challenges to affect earnings through 2027. Bank of America downgrade of NVR

NVR Company Profile

NVR, Inc is a homebuilding and mortgage banking company headquartered in Reston, Virginia. Through its homebuilding operations, the company designs and constructs single-family detached homes, townhomes and condominiums for buyers in a range of residential markets.

NVR markets homes primarily under the Ryan Homes, NVHomes and Heartland Homes brands. Ryan Homes generally serves a broad range of buyers, while NVHomes focuses on higher-end communities. The company’s homebuilding operations serve selected markets across the Mid-Atlantic, Midwest and Southeast regions of the United States.

Through NVR Mortgage, the company provides mortgage loan origination services to many of its homebuyers.