Stock Repurchase Program Approved by NVR (NYSE:NVR) Board of Directors

NVR (NYSE:NVR) declared that its board has approved a stock repurchase plan on Wednesday, December 11th, RTT News reports. The company plans to repurchase $750.00 million in shares. This repurchase authorization permits 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 management believes its shares are undervalued.

NVR Stock Performance

Shares of NVR stock opened at $8,848.69 on Thursday. The company has a debt-to-equity ratio of 0.21, a current ratio of 6.21 and a quick ratio of 3.54. NVR has a one year low of $6,500.61 and a one year high of $9,964.77. The business’s 50 day simple moving average is $9,285.41 and its 200 day simple moving average is $8,730.13. The stock has a market capitalization of $27.08 billion, a PE ratio of 18.09, a PEG ratio of 1.92 and a beta of 1.18.

NVR (NYSE:NVR) last posted its quarterly earnings data on Tuesday, October 22nd. The construction company reported $130.50 earnings per share for the quarter, missing the consensus estimate of $131.00 by ($0.50). NVR had a return on equity of 38.20% and a net margin of 16.51%. The firm had revenue of $2.68 billion for the quarter, compared to analyst estimates of $2.71 billion. During the same quarter last year, the company earned $125.26 earnings per share. The company’s quarterly revenue was up 6.6% compared to the same quarter last year. As a group, research analysts forecast that NVR will post 494.48 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on NVR shares. StockNews.com downgraded NVR from a “buy” rating to a “hold” rating in a research note on Thursday, November 7th. UBS Group boosted their target price on shares of NVR from $8,450.00 to $9,450.00 and gave the stock a “neutral” rating in a report on Wednesday, October 23rd. Bank of America cut their price target on shares of NVR from $10,800.00 to $10,600.00 and set a “buy” rating on the stock in a report on Wednesday, October 23rd. Finally, Seaport Res Ptn downgraded NVR from a “strong-buy” rating to a “hold” rating in a report on Sunday, November 10th.

Insiders Place Their Bets

In related news, Director David A. Preiser sold 250 shares of the stock in a transaction on Friday, November 8th. The shares were sold at an average price of $9,302.64, for a total transaction of $2,325,660.00. Following the transaction, the director now directly owns 239 shares of the company’s stock, valued at $2,223,330.96. This represents a 51.12 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Matthew B. Kelpy sold 400 shares of the firm’s stock in a transaction on Tuesday, November 5th. The stock was sold at an average price of $9,450.00, for a total transaction of $3,780,000.00. Following the completion of the sale, the chief accounting officer now owns 208 shares of the company’s stock, valued at $1,965,600. The trade was a 65.79 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 775 shares of company stock worth $7,294,073. Company insiders own 7.00% of the company’s stock.

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.