NVR (NYSE:NVR) to Buyback $300.00 million in Shares

NVR (NYSE:NVR) announced that its board has authorized a stock buyback plan on Thursday, May 2nd, RTT News reports. The company plans to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the construction company to reacquire up to 2.6% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board believes its shares are undervalued.

The Buyback Letter

Several analysts have recently issued reports on the company. Wells Fargo & Co set a $3,500.00 target price on NVR and gave the stock a “market perform” rating in a research report on Tuesday, April 23rd. Zacks Investment Research upgraded NVR from a “sell” rating to a “hold” rating in a report on Monday, March 18th. Finally, Buckingham Research raised their price objective on NVR from $3,030.00 to $3,410.00 and gave the stock a “buy” rating in a report on Tuesday, April 16th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, one has given a buy rating and one has issued a strong buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus price target of $3,251.17.

Shares of NVR stock opened at $3,320.00 on Friday. NVR has a 1 year low of $2,040.71 and a 1 year high of $3,381.98. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.03 and a current ratio of 4.04. The firm has a market cap of $11.91 billion, a PE ratio of 17.04, a PEG ratio of 1.56 and a beta of 0.72.

NVR (NYSE:NVR) last posted its quarterly earnings data on Monday, April 22nd. The construction company reported $47.64 EPS for the quarter, topping analysts’ consensus estimates of $34.45 by $13.19. NVR had a return on equity of 46.85% and a net margin of 11.45%. The business had revenue of $1.64 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same period in the previous year, the company posted $39.34 earnings per share. The firm’s revenue for the quarter was up 7.5% on a year-over-year basis. As a group, research analysts expect that NVR will post 198.36 earnings per share for the current year.

In other news, Director Dwight C. Schar sold 9,985 shares of the company’s stock in a transaction that occurred on Wednesday, February 20th. The stock was sold at an average price of $2,622.86, for a total value of $26,189,257.10. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, VP Matthew B. Kelpy acquired 25 shares of the stock in a transaction dated Tuesday, February 19th. The stock was bought at an average price of $2,668.58 per share, for a total transaction of $66,714.50. Following the completion of the purchase, the vice president now owns 125 shares in the company, valued at approximately $333,572.50. The disclosure for this purchase can be found here. Insiders have sold 27,305 shares of company stock worth $81,761,224 over the last 90 days. Corporate insiders own 11.10% of the company’s stock.

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About NVR

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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