NVR (NYSE:NVR) to Buyback $750.00 million in Outstanding Stock

NVR (NYSE:NVR) announced that its board has authorized a share repurchase plan on Wednesday, February 11th, RTT News reports. The company plans to repurchase $750.00 million in shares. This repurchase authorization allows the construction company to purchase up to 3.3% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

NVR Trading Down 7.2%

NVR opened at $7,511.54 on Friday. The company has a debt-to-equity ratio of 0.24, a current ratio of 6.21 and a quick ratio of 3.71. NVR has a fifty-two week low of $6,562.85 and a fifty-two week high of $8,618.28. The company’s 50 day moving average price is $7,571.39 and its two-hundred day moving average price is $7,711.54. The firm has a market capitalization of $20.96 billion, a price-to-earnings ratio of 17.18, a PEG ratio of 2.60 and a beta of 1.03.

NVR (NYSE:NVR) last issued its quarterly earnings results on Wednesday, January 28th. The construction company reported $121.54 EPS for the quarter, topping analysts’ consensus estimates of $105.42 by $16.12. The company had revenue of $2.74 billion for the quarter, compared to analyst estimates of $2.41 billion. NVR had a net margin of 13.27% and a return on equity of 34.28%. NVR’s revenue was down 5.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $139.93 earnings per share. As a group, research analysts predict that NVR will post 505.2 earnings per share for the current year.

Analysts Set New Price Targets

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

Insider Activity

In related news, CAO Matthew B. Kelpy sold 500 shares of the company’s stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $8,100.00, for a total value of $4,050,000.00. Following the sale, the chief accounting officer directly owned 208 shares in the company, valued at $1,684,800. This represents a 70.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Susan Williamson Ross sold 200 shares of the 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 sale, the director directly owned 386 shares of the company’s stock, valued at $3,123,365.32. This represents a 34.13% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 920 shares of company stock valued at $7,428,324. Insiders own 7.00% of the company’s stock.

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.