Matthew B. Kelpy, Vice President and Chief Accounting Officer at NVR Inc . (NYSE:NVR), has reported a significant transaction involving the company's common stock. According to the recent SEC filing, Kelpy sold 400 shares of NVR Inc. at a price of $9,450 per share, totaling approximately $3.78 million.
In addition to the sale, Kelpy exercised options to acquire 400 shares at a price of $2,843.17 per share, amounting to a total of approximately $1.14 million. Following these transactions, Kelpy holds 208 shares directly, with additional indirect ownership through a Profit Sharing Trust and an ESOP Trust.
In other recent news, NVR Inc. reported third-quarter earnings per share (EPS) of $130.50, surpassing BTIG's projection of $127.86 and nearing the Factset consensus of $131.00. The better-than-expected results were due to a lower tax rate and slightly higher revenue, counterbalanced by a decrease in financial services revenue and other income. NVR also saw a significant new order increase of 19%, outperforming BTIG's estimate of a 5% rise. Despite this, BTIG maintains a neutral rating on NVR shares, citing a consistent lack of community count growth as a challenge for the company.
In addition, JPMorgan (NYSE:JPM) raised its price target for NVR Inc. to $9,820, maintaining a neutral stance. This followed NVR's third-quarter EPS of $130.49, which was slightly below the consensus estimate of $131.28. Despite lower-than-expected gross margins and an increase in selling, general, and administrative expenses, NVR reported a 19% year-over-year increase in orders for the third quarter. This outpaced JPMorgan's growth expectation of 13%.
Furthermore, NVR's third-quarter earnings were impacted by rising costs, with gross profit margins declining to 23.4% from 24.3% in the same period last year. Despite this, the company saw a 5% increase in home deliveries, leading to consolidated revenues climbing 6% year-over-year to $2.73 billion, surpassing analyst estimates. These are the recent developments in NVR's financial performance.
InvestingPro Insights
The recent stock transaction by NVR Inc.'s Chief Accounting Officer Matthew B. Kelpy aligns with several key financial indicators and trends highlighted by InvestingPro.
NVR's stock has shown impressive performance, with a 53.31% total return over the past year. This strong performance is reflected in the company's robust financials. According to InvestingPro data, NVR boasts a market capitalization of $28.42 billion and a P/E ratio of 17.93, indicating investor confidence in the company's earnings potential.
An InvestingPro Tip reveals that management has been aggressively buying back shares, which could be a factor contributing to the stock's strong performance. This strategy often signals management's belief in the company's value and can help boost earnings per share.
Another relevant InvestingPro Tip notes that NVR holds more cash than debt on its balance sheet. This strong financial position provides the company with flexibility and stability, which may be particularly valuable in the cyclical homebuilding industry.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for NVR, providing a deeper understanding of the company's financial health and market position.
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