NVR (NYSE:NVR) Cut to “Strong Sell” at Zacks Research

Zacks Research downgraded shares of NVR (NYSE:NVR) from a hold rating to a strong sell rating in a report published on Tuesday,Zacks.com reports. Zacks Research also issued estimates for NVR’s Q1 2027 earnings at $85.66 EPS, Q2 2027 earnings at $105.30 EPS, Q3 2027 earnings at $115.67 EPS, Q4 2027 earnings at $123.01 EPS, FY2027 earnings at $429.65 EPS, Q1 2028 earnings at $91.22 EPS and FY2028 earnings at $461.91 EPS.

Several other analysts have also issued reports on the stock. Truist Financial reduced their price target on shares of NVR from $7,100.00 to $6,600.00 and set a “hold” rating on the stock in a research report on Thursday, April 23rd. Weiss Ratings downgraded shares of NVR from a “hold (c)” rating to a “sell (d+)” rating in a research report on Thursday, May 7th. BTIG Research reaffirmed a “buy” rating and issued a $8,096.00 target price on shares of NVR in a report on Wednesday, April 22nd. Zelman & Associates raised NVR from a “hold” rating to a “buy” rating in a report on Tuesday, July 7th. Finally, UBS Group lowered their price target on NVR from $8,100.00 to $7,700.00 and set a “neutral” rating for the company in a report on Thursday, April 23rd. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, NVR currently has a consensus rating of “Hold” and an average target price of $7,454.20.

NVR Stock Down 2.8%

NVR stock opened at $6,170.78 on Tuesday. NVR has a 52 week low of $5,501.01 and a 52 week high of $8,618.28. The business has a 50-day simple moving average of $6,353.15 and a 200 day simple moving average of $6,789.46. The company has a quick ratio of 2.67, a current ratio of 5.19 and a debt-to-equity ratio of 0.26. The company has a market cap of $16.66 billion, a PE ratio of 15.04, a price-to-earnings-growth ratio of 16.29 and a beta of 0.90.

NVR (NYSE:NVR) last released its earnings results on Thursday, July 23rd. The construction company reported $83.96 EPS for the quarter, beating the consensus estimate of $0.90 by $83.06. NVR had a net margin of 12.93% and a return on equity of 32.66%. The firm had revenue of $2.34 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same period last year, the firm earned $108.54 EPS. The business’s quarterly revenue was down 10.5% compared to the same quarter last year. Sell-side analysts anticipate that NVR will post 371.11 EPS for the current fiscal year.

Institutional Trading of NVR

A number of hedge funds have recently added to or reduced their stakes in NVR. Capital Research Global Investors grew its holdings in NVR by 0.4% during the 4th quarter. Capital Research Global Investors now owns 133,554 shares of the construction company’s stock worth $973,979,000 after acquiring an additional 551 shares during the last quarter. M&T Bank Corp raised its stake in shares of NVR by 34,923.5% during the fourth quarter. M&T Bank Corp now owns 56,738 shares of the construction company’s stock valued at $413,777,000 after acquiring an additional 56,576 shares during the last quarter. Corient Private Wealth LLC raised its stake in shares of NVR by 407.5% during the fourth quarter. Corient Private Wealth LLC now owns 45,572 shares of the construction company’s stock valued at $332,346,000 after acquiring an additional 36,592 shares during the last quarter. Norges Bank acquired a new position in shares of NVR during the fourth quarter worth $311,496,000. Finally, Capital World Investors lifted its holdings in shares of NVR by 0.3% during the fourth quarter. Capital World Investors now owns 40,703 shares of the construction company’s stock worth $296,838,000 after purchasing an additional 127 shares during the period. Institutional investors and hedge funds own 83.67% of the company’s stock.

NVR News Roundup

Here are the key news stories impacting NVR this week:

• Positive Sentiment: Operating cash flow improved sharply to $339.7 million, while the balance sheet remained strong with $1.14 billion in cash and relatively low debt. This helps cushion the earnings miss and supports financial flexibility.
• Positive Sentiment: New orders rose 9% and backlog increased, suggesting demand is holding up even as pricing and affordability remain challenging.
• Neutral Sentiment: Wall Street still has some constructive views on the stock, with recent buy coverage from Zelman & Assoc. and a range of price targets that remain well above the current share price.
• Negative Sentiment: Second-quarter diluted EPS came in at $83.96, below expectations and down 23% from a year ago, while revenue fell to $2.34 billion, also missing estimates.
• Negative Sentiment: Margins weakened as higher lot costs, pricing pressure, and contract land deposit impairments weighed on profitability, fueling concern that housing market conditions are pressuring returns.
• Negative Sentiment: Analyst sentiment turned less favorable, including a Zacks Research downgrade to “strong sell” and several downward EPS revisions for future periods, which likely added to selling pressure.

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.