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Hsbc Holdings PLC raised its position in NVR, Inc. (NYSE:NVR – Free Report) by 13.2% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 10,743 shares of the construction company’s stock after purchasing an additional 1,249 shares during the period. Hsbc Holdings PLC owned about 0.40% of NVR worth $73,157,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. BlackRock Inc. purchased a new position in shares of NVR during the second quarter valued at approximately $2,004,324,000. Capital Research Global Investors raised its holdings in NVR by 0.4% in the 4th quarter. Capital Research Global Investors now owns 133,554 shares of the construction company’s stock valued at $973,979,000 after acquiring an additional 551 shares during the last quarter. Corient Private Wealth LLC raised its holdings in NVR by 407.5% in the 4th 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 purchased a new position in shares of NVR during the 4th quarter worth $311,496,000. Finally, Capital World Investors lifted its stake in shares of NVR by 0.3% during the 4th 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. 83.67% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at NVR In other NVR news, Director George Oliver purchased 63 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The stock was purchased at an average cost of $6,431.51 per share, with a total value of $405,185.13. Following the transaction, the director owned 63 shares in the company, valued at approximately $405,185.13. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 8.60% of the company’s stock.

NVR Price Performance Shares of NVR stock opened at $6,306.62 on Tuesday. NVR, Inc. has a twelve month low of $5,501.01 and a twelve month high of $8,618.28. The stock has a market capitalization of $16.78 billion, a P/E ratio of 16.36, a PEG ratio of 10.53 and a beta of 0.91. The company has a current ratio of 5.28, a quick ratio of 2.24 and a debt-to-equity ratio of 0.27. The business’s fifty day moving average price is $6,407.09 and its 200 day moving average price is $6,491.34. NVR (NYSE:NVR – Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The construction company reported $83.96 EPS for the quarter, topping the consensus estimate of $0.90 by $83.06. The company had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.40 billion. NVR had a return on equity of 31.02% and a net margin of 12.26%.The firm’s revenue was down 10.5% on a year-over-year basis. During the same period in the prior year, the firm posted $108.54 earnings per share. As a group, research analysts anticipate that NVR, Inc. will post 367.13 earnings per share for the current year.

Wall Street Analysts Forecast Growth NVR has been the subject of a number of recent analyst reports. Zelman & Associates raised NVR from a “hold” rating to a “buy” rating in a research report on Tuesday, July 7th. BTIG Research set a $7,446.00 price target on NVR in a research note on Friday, July 24th. Zacks Research upgraded NVR from a “strong sell” rating to a “hold” rating in a report on Wednesday, August 19th. Weiss Ratings raised shares of NVR from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, August 18th. Finally, Truist Financial cut their price objective on shares of NVR from $6,600.00 to $6,400.00 and set a “hold” rating on the stock in a report on Friday, July 24th. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $7,224.20.

Get Our Latest Research Report on NVR

NVR Profile (Free Report)

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.

Featured Stories Five stocks we like better than NVR 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding NVR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVR, Inc. (NYSE:NVR – Free Report).

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One of the most closely watched investment firms in the world, Berkshire Hathaway, is back in the news, releasing its latest round of portfolio updates.

The company’s legendary longtime leader, Warren Buffett, stepped down as CEO at the end of 2025, with Greg Abel taking over on Jan. 1, 2026. Buffett remains Berkshire’s chairman, making this the second quarterly portfolio update since the leadership transition.

Berkshire turned over its portfolio significantly in Q1, drastically reducing its number of holdings and selling out of many names.

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While the changes in Q2 are not nearly as dramatic, Berkshire is clearly indicating where it sees opportunities in the market.

Berkshire Doubles Down on AlphabetBerkshire’s most notable move in Q2 did not involve initiating a new position or exiting a holding but rather adding greatly to one of its biggest bets. In Q2, Berkshire massively increased its position in the Magnificent Seven giant and AI hyperscaler Alphabet NASDAQ: GOOGL.

Alphabet Today

$346.59 +5.94 (+1.74%)

As of 08/28/2026 04:00 PM Eastern

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Combining Alphabet’s Class A and Class C shares, Berkshire now owns approximately 106 million shares of the company. This compares to its position of just under 58 million shares in Q1, marking an 83% increase in just one quarter. As of the end of Q2, Berkshire’s position in Alphabet was worth a whopping $37.8 billion. This accounts for 12.6% of Berkshire’s portfolio, making the name its third-largest holding. This is a significant elevation versus Q1, when Alphabet was Berkshire's seventh-largest holding.

Clearly, Berkshire has developed significant conviction in Alphabet, which remains the only major AI hyperscaler represented in its reported equity portfolio. There is certainly reason for optimism around Alphabet in the AI race. The most impressive aspect of the company is the soaring growth at Google Cloud.

Last quarter, cloud revenue increased 82% year-over-year (YOY), driven by strong demand for AI infrastructure and AI solutions. This figure surpassed the growth of Microsoft’s NASDAQ: MSFT Azure cloud and Amazon.com’s NASDAQ: AMZN AWS by a wide margin. These businesses grew by 43% YOY and 36.7% YOY, respectively.

While this is a strong positive indicator for Alphabet’s AI future, not everything at the firm is going well. There is a general belief that the company’s Gemini model is falling behind ChatGPT and Claude. Notably, Alphabet has delayed the release of Gemini 3.5 Pro due to poor performance, heightening concerns.

Berkshire Adds to Homebuilders, Cuts Key Names Across Finance, Steel and StaplesBerkshire also made a clear move as it related to another key part of the stock market in Q2: homebuilders. Berkshire significantly increased its position in Lennar NYSE: LEN, one of the country’s top homebuilders. Overall, the company increased its position in Lennar by just under 30% to 13.4 million shares when combining both of Lennar’s share classes. This brings the size of its position to approximately $1.2 billion. Homebuilding giant D.R. Horton NYSE: DHI was also Berkshire’s only new holding during Q2, although the position is extremely small at just $580,000. The company also has a $75.7 million position in homebuilder NVR NYSE: NVR, although the position was unchanged during the quarter. These moves are interesting, considering that homebuilders have struggled significantly for some time. Notably, all three of these names are in the red over the past 52 weeks, with Lennar down more than 30%.

Lennar’s revenue growth has been negative for five quarters in a row, although its 5.2% revenue decline in Q2 was a significant improvement versus the 13.3% decline in Q1. Additionally, the company’s orders came in near the high end of its guidance, a positive forward-looking indicator. It is possible that Berkshire believes Lennar is beginning to bottom out, with some financial metrics improving. However, it is important to note that Berkshire is not making a bet on this name that could substantially hurt its overall portfolio performance. Its Lennar position represents only around 0.4% of the company’s portfolio.

On the other hand, Berkshire has abandoned ship when it comes to Mexican beer giant Constellation Brands NYSE: STZ. The firm sold out of this position in Q2 after reducing its shares held by 95% in Q1. Constellation has failed to stage much of a recovery from its 2026 lows, with beer sales coming under significant pressure.

Berkshire also made large cuts to its positions in big names like Capital One Financial NYSE: COF, Nucor NYSE: NUE, and Kroger NYSE: KR. Its holdings in these names fell by 58%, 52%, and 22%, respectively.

Berkshire’s Hyperscaler Bet Still Has Much to ProveAlphabet continues to be the biggest story when it comes to Berkshire’s recent portfolio moves, with its other top holdings being long-held positions. Looking ahead, the growth in Google Cloud will be the biggest factor to watch, as this is where much of the company’s AI-related revenue comes from.

Alphabet Inc. (GOOGL) Price Chart for Sunday, August, 30, 2026

Cloud revenue was $24.8 billion last quarter, or just under a $100 billion run rate, which includes a significant amount of non-AI revenue. Yet, the company expects to spend $200 billion on capital expenditures (CapEx) in 2026 at the midpoint. Thus, while Cloud is growing briskly, Alphabet still has a long way to go to justify its AI spending, with the company eventually needing AI revenue to surpass CapEx.

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Bank of New York Mellon Corp purchased a new stake in NVR, Inc. (NYSE:NVR – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 12,339 shares of the construction company’s stock, valued at approximately $84,069,000. Bank of New York Mellon Corp owned 0.46% of NVR at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Norges Bank bought a new position in shares of NVR during the 4th quarter valued at about $311,496,000. Corient Private Wealth LLC increased its holdings in shares of NVR by 407.5% in the fourth quarter. Corient Private Wealth LLC now owns 45,572 shares of the construction company’s stock worth $332,346,000 after purchasing an additional 36,592 shares during the last quarter. First Trust Advisors LP increased its holdings in shares of NVR by 879.9% in the first quarter. First Trust Advisors LP now owns 24,418 shares of the construction company’s stock worth $160,911,000 after purchasing an additional 21,926 shares during the last quarter. Newport Capital Group LLC purchased a new stake in shares of NVR in the fourth quarter worth about $106,372,000. Finally, Deutsche Bank AG lifted its position in shares of NVR by 65.4% in the fourth quarter. Deutsche Bank AG now owns 24,289 shares of the construction company’s stock worth $177,134,000 after buying an additional 9,604 shares in the last quarter. 83.67% of the stock is owned by institutional investors and hedge funds.

NVR Stock Up 0.6% Shares of NYSE:NVR opened at $6,432.84 on Wednesday. NVR, Inc. has a 52-week low of $5,501.01 and a 52-week high of $8,618.28. The stock has a market cap of $17.11 billion, a P/E ratio of 16.68, a price-to-earnings-growth ratio of 10.69 and a beta of 0.91. The business’s 50 day moving average is $6,450.03 and its 200 day moving average is $6,587.13. The company has a quick ratio of 2.24, a current ratio of 5.28 and a debt-to-equity ratio of 0.27.

NVR (NYSE:NVR – Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The construction company reported $83.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $83.06. The company had revenue of $2.34 billion for the quarter, compared to analyst estimates of $2.40 billion. NVR had a net margin of 12.26% and a return on equity of 31.02%. NVR’s revenue was down 10.5% compared to the same quarter last year. During the same period last year, the company posted $108.54 earnings per share. Sell-side analysts predict that NVR, Inc. will post 367.13 EPS for the current year. Insider Transactions at NVR In other NVR news, Director George Oliver acquired 63 shares of the firm’s stock in a transaction on Friday, August 7th. The stock was acquired at an average cost of $6,431.51 per share, for a total transaction of $405,185.13. Following the purchase, the director owned 63 shares in the company, valued at approximately $405,185.13. The trade was a ∞ increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 8.60% of the stock is owned by company insiders.

Wall Street Analyst Weigh In Several research firms have weighed in on NVR. Zelman & Associates upgraded NVR from a “hold” rating to a “buy” rating in a report on Tuesday, July 7th. UBS Group decreased their price objective on NVR from $7,700.00 to $7,400.00 and set a “neutral” rating on the stock in a report on Friday, July 24th. Zacks Research upgraded NVR from a “strong sell” rating to a “hold” rating in a research report on Wednesday, August 19th. Weiss Ratings raised shares of NVR from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, August 18th. Finally, Truist Financial reduced their price target on shares of NVR from $6,600.00 to $6,400.00 and set a “hold” rating on the stock in a research report on Friday, July 24th. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $7,224.20.

Get Our Latest Research Report on NVR

NVR Profile (Free Report)

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.

Further Reading Five stocks we like better than NVR Pathward’s Credit Scare Tests Its Comeback Story Wiring the AI Boom: Rumble’s $13.7B Pivot StoneX: Too Far Too Fast? DICK’s Sporting Goods Faces Pain Now for a Bigger Prize

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George Oliver, Director, reported a purchase of 63 shares of NVR, Inc. (NVR -2.12%) at $6,431.51 per share on Aug. 7, 2026. SEC Form 4 filing

Transaction summaryMetricValueShares purchased63Transaction value~$405,185Post-transaction shares (directly held)63Post-transaction value$402,578.82Transaction value based on SEC Form 4 weighted average purchase price ($6,431.51); post-transaction value based on Aug. 7, 2026 market close ($6,390.14).

Key questionsHow does this purchase relate to the company's financial scale?
The acquisition was executed while the residential construction company maintained a market capitalization of $17.0 billion and reported trailing-twelve-month revenue of $9.4 billion.What is the director's total equity stake following this filing?
George Oliver now holds a 0.0023% stake in the company, with the direct position valued at $402,578.82 based on the Aug. 7, 2026, market close.What was the market pricing context on the day of execution?
Shares were purchased at $6,431.51 per share, representing a premium relative to the $6,390.14 market close on Aug. 7, 2026.Are there any derivative or indirect interests reported in this transaction?
The director reports no indirect ownership interests through entities or trusts, and no outstanding derivative securities were disclosed in this filing.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$6,292.28Market Capitalization$17.0 billionRevenue (TTM)$9.4 billionNet Income (TTM)$1.1 billionCompany SnapshotNVR, Inc. operates as a leading residential construction company with two primary business segments: homebuilding and mortgage banking, generating revenue through the development and sale of detached houses, townhouses, and condominium units marketed under the Ryan Homes, NVHomes, and Heartland Homes brand names.The company generates revenue through direct homebuilding operations, which constitute the majority of earnings, complemented by mortgage banking services that provide financing solutions to homebuyers and enhance customer acquisition and retention.NVR primarily serves first-time homebuyers and existing homeowners seeking property upgrades across the United States, with a diversified geographic footprint that mitigates the risk of regional market concentration.NVR, Inc. is a substantial participant in the U.S. residential construction sector, with a TTM revenue base of $9.4 billion and net income of $1.1 billion, reflecting strong operational profitability in the cyclical consumer housing market. The company's integrated homebuilding and mortgage banking model provides operational synergies and enhanced customer relationships, positioning it competitively within the residential construction industry. With a market capitalization of $17.0 billion and a diversified brand portfolio, NVR maintains significant scale and market presence across multiple residential construction segments.

What this transaction means for investorsThis is a somewhat tricky purchase to digest for a few reasons. Typically, open-market cash buys like this are an excellent sign for shareholders and prospective investors. However, the somewhat small size of this purchase doesn’t really move the needle, as it’s more likely just the new director adding a few shares to “be in alignment” with the rest of the board.

I’d also argue that director purchases are less insightful than CEO, CFO, or COO purchases, as directors don’t typically see the day-to-day inner workings of the company as insiders do. That said, Oliver’s purchase may nonetheless indicate that they see now as a good time to buy NVR stock, so that is promising, at least, just not a full-fledged buying signal.

As for NVR stock, it remains a core holding for me, as I see it as the steadiest option in the homebuilding industry. Since emerging from bankruptcy and going public in 1993, NVR has been profitable every single year. Better yet, the company maintains a conservative balance sheet, allowing it to continuously buy back its own shares, especially when they’re cheaper -- like today. Over the last two decades, NVR has reduced its share count by 4% each year, generating a 14% annualized total return over that period.

Investors interested in Building Products - Home Builders stocks are likely familiar with PulteGroup (PHM) and NVR (NVR). But which of these two stocks presents investors with the better value opportunity right now?

Posted by Defense World Staff on Jul 28th, 2026

Bank of Nova Scotia cut its position in shares of NVR, Inc. (NYSE:NVR – Free Report) by 77.8% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 841 shares of the construction company’s stock after selling 2,950 shares during the quarter. Bank of Nova Scotia’s holdings in NVR were worth $5,542,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in NVR. Sumitomo Mitsui DS Asset Management Company Ltd grew its stake in shares of NVR by 0.5% in the 4th quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 425 shares of the construction company’s stock worth $3,099,000 after buying an additional 2 shares during the last quarter. International Assets Investment Management LLC increased its holdings in shares of NVR by 3.9% during the fourth quarter. International Assets Investment Management LLC now owns 53 shares of the construction company’s stock valued at $387,000 after acquiring an additional 2 shares in the last quarter. Ballentine Partners LLC increased its holdings in shares of NVR by 4.9% during the fourth quarter. Ballentine Partners LLC now owns 43 shares of the construction company’s stock valued at $314,000 after acquiring an additional 2 shares in the last quarter. AG2R LA Mondiale Gestion D Actifs raised its position in shares of NVR by 1.6% in the 4th quarter. AG2R LA Mondiale Gestion D Actifs now owns 127 shares of the construction company’s stock worth $926,000 after purchasing an additional 2 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its stake in NVR by 28.6% in the 4th quarter. EverSource Wealth Advisors LLC now owns 9 shares of the construction company’s stock worth $67,000 after purchasing an additional 2 shares in the last quarter. 83.67% of the stock is owned by hedge funds and other institutional investors.

NVR Stock Down 1.5% Shares of NVR stock opened at $6,318.46 on Tuesday. The company’s fifty day simple moving average is $6,382.71 and its two-hundred day simple moving average is $6,776.78. NVR, Inc. has a 52 week low of $5,501.01 and a 52 week high of $8,618.28. The stock has a market cap of $17.06 billion, a P/E ratio of 16.39, a PEG ratio of 16.46 and a beta of 0.90. The company has a quick ratio of 2.24, a current ratio of 5.28 and a debt-to-equity ratio of 0.27.

NVR (NYSE:NVR – Get Free Report) last posted its earnings results on Thursday, July 23rd. The construction company reported $83.96 earnings per share for the quarter, beating analysts’ consensus estimates of $0.90 by $83.06. NVR had a net margin of 12.26% and a return on equity of 31.02%. The firm had revenue of $2.34 billion during the quarter, compared to analyst estimates of $2.40 billion. During the same period last year, the firm posted $108.54 earnings per share. NVR’s revenue for the quarter was down 10.5% compared to the same quarter last year. Analysts predict that NVR, Inc. will post 371.11 EPS for the current fiscal year.

Analyst Ratings Changes A number of research firms have recently commented on NVR. Bank of America cut their price target on shares of NVR from $7,600.00 to $7,200.00 and set a “buy” rating on the stock in a report on Monday, July 20th. UBS Group decreased their price objective on shares of NVR from $7,700.00 to $7,400.00 and set a “neutral” rating for the company in a report on Friday. Truist Financial lowered their price objective on NVR from $6,600.00 to $6,400.00 and set a “hold” rating on the stock in a research report on Friday. Seaport Research Partners reiterated a “sell” rating and set a $5,664.00 target price on shares of NVR in a research note on Tuesday, April 7th. Finally, BTIG Research set a $7,446.00 target price on NVR in a report on Friday. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $7,224.20.

Read Our Latest Stock Analysis on NVR

NVR Company Profile (Free Report)

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.

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Key Takeaways NVR's Q2 earnings fell 23% as homebuilding revenues dropped 11%, sending shares down 3.1%.Settlements fell 8% and average pricing dropped 3% as higher lot costs pressured margins.New orders and backlog units rose 9%, while the cancellation rate improved to 14.9%. NVR, Inc. (NVR - Free Report) reported second-quarter 2026 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Earnings and Homebuilding revenues also declined on a year-over-year basis.

The quarter reflected stronger order activity and a lower cancellation rate, but fewer settlements, softer pricing and margin pressure weighed on results. Backlog units increased 9% year over year, while Homebuilding gross margin contracted amid higher lot costs, affordability challenges and land deposit impairments.

Following the results, NVR stock slipped 3.1% during yesterday’s trading hours.

Inside NVR’s Q2 HeadlinesThe company reported earnings of $83.96 per share, down 22.6% year over year and missing the Zacks Consensus Estimate of $94.82 by 11.5%.

Homebuilding revenues of $2.28 billion also missed the consensus mark of $2.41 billion by 5.2%. Revenues declined 10.5% year over year from $2.55 billion, reflecting lower settlement volumes and a decrease in the average settlement price.

Consolidated revenues (Homebuilding & Mortgage Banking fees combined) amounted to $2.33 billion, down 10.4% on a year-over-year basis.

NVR Faces Lower Settlements and Pricing PressureHomebuilding revenues decreased to $2.28 billion from $2.55 billion in the prior-year quarter. Settlements fell 8% to 5,058 units from 5,475 units, limiting revenue generation during the period. Our model predicted settlements to decline 6.7% year over year to 5,107 units.

The average settlement price declined 3% year over year to $450,700. The combination of fewer closings and a lower average price weighed on the segment’s top-line performance. Our estimate for the metric was $471,500.

NVR Sees Margin CompressionHomebuilding gross margin contracted to 19.2% from 21.5% a year ago. Profitability was pressured by higher lot costs, continued affordability challenges and weak consumer sentiment, which led to increased pricing pressure. Our estimate for the metric was 18.8%.

The quarter also included approximately $21.7 million of contract land deposit impairments. Consequently, homebuilding income before taxes declined 30% year over year to $293.2 million.

NVR Sees Mortgage Banking Activity ModerateMortgage closed loan production declined 13% year over year to $1.35 billion from $1.56 billion. Mortgage banking fees decreased to $46.6 million from $50.5 million.

Mortgage banking income before taxes fell 14% to $25.4 million from $29.6 million. The capture rate, which represents the percentage of NVR homebuyers using the company’s mortgage services, decreased to 85% from 87%.

NVR Benefits From Stronger Order ActivityNew orders, net of cancellations, increased 9% year over year to 5,885 units. Growth was led by the South East, where orders rose to 2,228 units from 1,953 units, while Mid Atlantic orders increased to 2,081 units from 1,930 units.

The average sales price of new orders declined 5% to $437,100. Our model predicted the ASP of new orders at $457,300. However, the cancellation rate improved to 14.9% from 16.5%, suggesting that a greater proportion of signed contracts remained intact during the quarter.

NVR Builds Backlog Despite Lower Average PricingBacklog totaled 10,998 units as of June 30, 2026, up 9% from 10,069 units a year earlier. The dollar value of backlog increased 5% to $4.99 billion.

The average backlog price declined to $453,900 from $472,100. Average active communities increased to 442 from 426, expanding the company’s selling footprint while stronger order activity supported the year-over-year backlog increase.

NVR Maintains Liquidity and Continues BuybacksHomebuilding cash and cash equivalents were $1.09 billion as of June 30, 2026, compared with $1.88 billion at the end of 2025. Homebuilding inventory increased to $2.24 billion from $1.72 billion during the same period. Mortgage banking cash and cash equivalents were $50.9 million versus $32.6 million at year-end.

NVR repurchased 54,716 shares during the quarter for an aggregate cost of $357.8 million. Shares outstanding declined to 2.68 million from 2.88 million a year earlier, helping offset part of the effect of lower net income on per-share earnings.

NVR's Zacks Rank & Peer ReleasesCurrently, NVR carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PulteGroup, Inc. (PHM - Free Report) reported better-than-expected second-quarter 2026 results, with adjusted earnings and total revenues topping the Zacks Consensus Estimate, but declining year over year. The quarterly results reflect reduced home-closing volumes, softer average selling prices (ASP) and margin compression.

PulteGroup ended the quarter with a backlog of 10,966 homes, up 1.7% from the prior-year level. Backlog units increased in the Northeast, Florida, Midwest and Texas, while the Southeast and West reported declines. The value of homes in backlog slipped 0.6% to $6.80 billion. The divergence between higher units and lower value indicates that the average value of homes in backlog declined year over year, consistent with PHM’s broader pricing pressure.

D.R. Horton, Inc. (DHI - Free Report) reported third-quarter fiscal 2026 earnings of $3.20 per share, beating the Zacks Consensus Estimate of $2.99 by 7%. Revenues of $9.23 billion also surpassed the consensus mark of $9.19 billion by 0.5%. On a year-over-year basis, earnings declined 4.8%, while revenues increased marginally.

DHI’s earnings and revenue beat was driven by higher home-closing volumes, resilient home sales margins, disciplined management of pricing and incentives, and contributions from the Rental, Forestar and Financial Services businesses. However, lower profitability, elevated incentives and cautious consumer demand continued to weigh on results. D.R. Horton now expects fiscal 2026 consolidated revenues of $32.5-$33 billion, down from $33.5-$34.5 billion expected earlier.

Lennar Corporation (LEN - Free Report) reported mixed second-quarter fiscal 2026 results, with adjusted earnings topping the Zacks Consensus Estimate while revenues missed the same. Year over year, both metrics declined, given ongoing softness in housing demand and a lower ASP for homes delivered.

LEN’s Homebuilding revenues declined 2% year over year to $7.62 billion from $7.84 billion, with home deliveries increasing 2% to 20,519 homes from 20,131 homes a year ago. Backlog at quarter-end increased to 16,818 homes from 15,538 homes. For the third quarter of fiscal 2026, Lennar expects home deliveries in the range of 20,500-21,500 and new orders between 21,000 and 22,000 homes. Gross margin on home sales is expected to be approximately 16%.

, /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its second quarter ended June 30, 2026 of $236.5 million, or $83.96 per diluted share.  For the second quarter ended June 30, 2026, net income and diluted earnings per share decreased 29% and 23%, respectively, when compared to 2025 second quarter net income of $333.7 million, or $108.54 per diluted share.  Consolidated revenues for the second quarter of 2026 totaled $2.33 billion, compared to $2.60 billion in the second quarter of 2025. 

For the six months ended June 30, 2026, consolidated revenues were $4.21 billion, a 16% decrease from $5.00 billion reported for the same period of 2025. Net income for the six months ended June 30, 2026 was $434.8 million, a decrease of 31% when compared to net income for the six months ended June 30, 2025 of $633.3 million. Diluted earnings per share for the six months ended June 30, 2026 was $151.38, a decrease of 26% from $203.20 per diluted share for the same period of 2025.

Homebuilding

New orders in the second quarter of 2026 increased by 9% to 5,885 units, when compared to 5,379 units in the second quarter of 2025. The average sales price of new orders in the second quarter of 2026 was $437,100, a decrease of 5% when compared to the second quarter of 2025.  The cancellation rate in the second quarter of 2026 was 15% compared to 17% in the second quarter of 2025.  Settlements in the second quarter of 2026 decreased by 8% to 5,058 units, compared to 5,475 units in the second quarter of 2025. The average settlement price in the second quarter of 2026 was $450,700, a decrease of 3% when compared to the second quarter of 2025. Our backlog of homes sold but not settled as of June 30, 2026 increased on a unit basis by 9% to 10,998 units and increased on a dollar basis by 5% to $4.99 billion when compared to the respective backlog unit and dollar balances as of June 30, 2025.

Homebuilding revenues of $2.28 billion in the second quarter of 2026 decreased by 11% compared to homebuilding revenues of $2.55 billion in the second quarter of 2025. Gross profit margin in the second quarter of 2026 decreased to 19.2%, from 21.5% in the second quarter of 2025.  Gross profit margin was negatively impacted by higher lot costs, pricing pressure due to continued affordability challenges and weak consumer sentiment, and by contract land deposit impairments totaling approximately $21.7 million. Income before tax from the homebuilding segment totaled $293.2 million in the second quarter of 2026, a decrease of 30% when compared to the second quarter of 2025.

Mortgage Banking

Mortgage closed loan production in the second quarter of 2026 totaled $1.35 billion, a decrease of 13% when compared to the second quarter of 2025. Income before tax from the mortgage banking segment totaled $25.4 million in the second quarter of 2026, a decrease of 14% when compared to $29.6 million in the second quarter of 2025.

About NVR

NVR, Inc. operates in two business segments:  homebuilding and mortgage banking.  The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-seven metropolitan areas in sixteen states and Washington, D.C.  For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com.

Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "could," or "anticipates" or the negative thereof or other comparable terminology.  All statements other than of historical facts are forward-looking statements.  Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, and projected plans and objectives of management for future operations.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements.  Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control.  NVR undertakes no obligation to update such forward-looking statements except as required by law.

NVR, Inc.

Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Homebuilding:

Revenues

$      2,279,771

$      2,548,267

$      4,114,650

$      4,898,712

Other income

12,095

25,088

40,144

51,800

Cost of sales

(1,841,217)

(1,999,983)

(3,315,756)

(3,835,358)

Selling, general and administrative

(150,721)

(149,170)

(307,692)

(314,287)

Interest expense

(6,698)

(6,685)

(13,552)

(13,866)

Homebuilding income

293,230

417,517

517,794

787,001

Mortgage Banking:

Mortgage banking fees

46,585

50,547

92,769

103,134

Interest income

3,983

4,493

7,612

8,299

Other income

1,292

1,301

2,069

2,394

General and administrative

(26,153)

(26,425)

(49,280)

(51,118)

Interest expense

(296)

(300)

(629)

(573)

Mortgage banking income

25,411

29,616

52,541

62,136

Income before taxes

318,641

447,133

570,335

849,137

Income tax expense

(82,183)

(113,396)

(135,518)

(215,824)

Net income

$        236,458

$        333,737

$        434,817

$        633,313

Basic earnings per share

$            87.65

$          114.52

$          158.75

$          214.78

Diluted earnings per share

$            83.96

$          108.54

$          151.38

$          203.20

Basic weighted average shares outstanding

2,698

2,914

2,739

2,949

Diluted weighted average shares outstanding

2,816

3,075

2,872

3,117

NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

June 30, 2026

December 31, 2025

ASSETS

Homebuilding:

Cash and cash equivalents

$         1,093,736

$         1,883,844

Restricted cash

44,562

34,348

Receivables

49,642

32,742

Inventory:

Lots and housing units, covered under sales agreements with customers

1,877,430

1,410,695

Unsold lots and housing units

307,698

252,029

Land under development

21,067

39,312

Building materials and other

29,094

21,524

2,235,289

1,723,560

Contract land deposits, net

927,380

851,458

Property, plant and equipment, net

99,248

103,770

Operating lease right-of-use assets

110,893

110,535

Other assets

348,163

349,306

4,908,913

5,089,563

Mortgage Banking:

Cash and cash equivalents

50,938

32,642

Restricted cash

8,023

6,047

Mortgage loans held for sale, net

396,678

571,596

Property and equipment, net

7,723

7,727

Operating lease right-of-use assets

22,538

23,953

Other assets

75,807

125,402

561,707

767,367

Total assets

$         5,470,620

$         5,856,930

NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)

(unaudited)

June 30, 2026

December 31, 2025

LIABILITIES AND SHAREHOLDERS' EQUITY

Homebuilding:

Accounts payable

$           375,478

$           259,244

Accrued expenses and other liabilities

311,697

376,976

Customer deposits

294,698

249,210

Operating lease liabilities

117,947

117,589

Senior notes

908,162

909,160

2,007,982

1,912,179

Mortgage Banking:

Accounts payable and other liabilities

46,849

53,738

Operating lease liabilities

24,593

26,144

71,442

79,882

Total liabilities

2,079,424

1,992,061

Commitments and contingencies

Shareholders' equity:

Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares

 issued as of both June 30, 2026 and December 31, 2025

206

206

Additional paid-in capital

3,223,670

3,155,367

Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of

 both June 30, 2026 and December 31, 2025

(16,710)

(16,710)

Deferred compensation liability

16,710

16,710

Retained earnings

16,821,586

16,386,769

Less treasury stock at cost – 17,877,177 and 17,755,943 shares as of June 30, 2026

 and December 31, 2025, respectively

(16,654,266)

(15,677,473)

Total shareholders' equity

3,391,196

3,864,869

Total liabilities and shareholders' equity

$         5,470,620

$         5,856,930

NVR, Inc.

Operating Activity

(dollars in thousands)

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Units

Average
Price

Units

Average
Price

Units

Average
Price

Units

Average
Price

New orders, net of cancellations:

Mid Atlantic (1)

2,081

$           499.2

1,930

$           531.3

3,998

$           499.2

3,796

$           523.0

North East (2)

390

$           639.4

424

$           655.3

859

$           624.4

801

$           674.0

Mid East (3)

1,186

$           419.2

1,072

$           424.2

2,369

$           422.2

2,170

$           422.0

South East (4)

2,228

$           353.3

1,953

$           361.7

4,397

$           356.0

3,957

$           359.0

Total

5,885

$           437.1

5,379

$           458.1

11,623

$           438.6

10,724

$           453.3

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Units

Average Price

Units

Average Price

Units

Average Price

Units

Average Price

Settlements:

Mid Atlantic (1)

1,721

$           511.1

2,101

$           537.2

3,139

$           515.3

4,151

$           532.6

North East (2)

452

$           621.1

474

$           651.7

818

$           637.2

945

$           632.5

Mid East (3)

1,056

$           429.4

1,082

$           415.8

1,778

$           429.6

2,095

$           411.6

South East (4)

1,829

$           364.1

1,818

$           363.3

3,338

$           363.0

3,417

$           359.2

Total

5,058

$           450.7

5,475

$           465.4

9,073

$           453.5

10,608

$           461.8

As of June 30,

2026

2025

Units

Average
Price

Units

Average
Price

Backlog:

Mid Atlantic (1)

4,019

$     509.2

3,713

$     532.6

North East (2)

1,014

$     632.9

911

$     698.4

Mid East (3)

2,224

$     426.2

2,120

$     426.8

South East (4)

3,741

$     362.5

3,325

$     371.6

Total

10,998

$     453.9

10,069

$     472.1

NVR, Inc.

Operating Activity (Continued)

(dollars in thousands)

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Average active communities:

Mid Atlantic (1)

133

120

129

120

North East (2)

28

26

29

25

Mid East (3)

95

94

97

93

South East (4)

186

186

182

175

Total

442

426

437

413

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Homebuilding data:

New order cancellation rate

14.9 %

16.5 %

14.4 %

16.0 %

Lots controlled at end of period

184,400

171,400

Mortgage banking data:

Loan closings

$      1,354,713

$      1,555,280

$    2,407,697

$    2,988,201

Capture rate

85 %

87 %

84 %

87 %

Common stock information:

Shares outstanding at end of period

2,678,153

2,883,215

Number of shares repurchased

54,716

65,834

144,896

142,954

Aggregate cost of shares repurchased

$        357,777

$        471,413

$      989,733

$    1,054,807

(1)

Maryland, Virginia, West Virginia, Delaware and Washington, D.C.

(2)

New Jersey and Eastern Pennsylvania

(3)

New York, Ohio, Western Pennsylvania, Indiana and Illinois

(4)

North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky

SOURCE NVR, INC.

Investors looking for stocks in the Building Products - Home Builders sector might want to consider either Meritage Homes (MTH) or NVR (NVR). But which of these two stocks is more attractive to value investors?

NVR (NVR) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Investors looking for stocks in the Building Products - Home Builders sector might want to consider either D.R. Horton (DHI) or NVR (NVR).

One problem with lowering the cost of capital is when you have to raise it. That's the overly simplistic issue pitting prospective homebuyers against a market with a chronic lack of supply. 

Mortgage rates may not be high by historical standards. But compared to the last 15 years, many would-be homebuyers are priced out. As of April 14, the 10-year Treasury note shows no signs of relief. It acts as a spread for the 30-year fixed mortgage. 

This stings after the Great Relocation of 2020–2021, when homes changed hands at breakneck speed and record prices. Today, few homeowners are willing to trade a 3% mortgage for one near 7%. 

Get D.R. Horton alerts:

That lock-in effect has frozen existing inventory. New construction is often the only housing available. For risk-tolerant investors, that creates a real, if nuanced, opportunity. But first, it’s important to understand the nature of the crisis. 

The Supply Crisis That Won't Fix Itself Before examining individual stocks, the macro backdrop matters. The U.S. housing supply gap widened to an estimated 4.03 million homes in 2025. That figure has grown every year for over a decade. 

The White House economists estimate the shortage could be as large as 10 million homes. The gap reflects years of underbuilding, zoning restrictions, and labor shortages. None of those issues can be resolved quickly. 

Even under an optimistic scenario—construction up 50%, pent-up demand fully absorbed—closing the gap takes roughly seven years. That's a long structural tailwind for builders and something that investors can profit from.  

There's also a generational demand reservoir building. An estimated 1.82 million Millennial and Gen Z households were "missing" in 2025. High costs have delayed their entry into the market. That demand doesn't disappear. It waits. 

 Why High Rates Are a Double-Edged Sword for Builders Here's the counterintuitive core of this story. The same rates that crush affordability are also keeping existing homeowners in place. Sellers don't want to trade a 3% mortgage for 7%. So they stay put. 

That freeze drains resale inventory. It pushes buyers who can still qualify toward new construction. Builders become the only game in town. Now here are three stocks to consider.  

D.R. Horton (DHI): Built for This Market D.R. Horton NYSE: DHI is the largest homebuilder in the U.S. by volume. Its focus on entry-level, affordably priced homes is precisely what this market demands most. That positioning is not an accident. 

D.R. Horton Today

$153.99 +7.28 (+4.96%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$119.54▼

$184.54Dividend Yield1.17%

P/E Ratio14.43

Price Target$168.54

D.R. Horton's strategy is often summarized as "pace over price." The company would rather offer incentives to keep inventory moving than hold out for peak margins. In a high-rate, affordability-constrained market, that philosophy works. 

DHI operates in-house mortgage and financial services divisions. These allow it to fund rate buydowns directly. It captures buyers who otherwise couldn't qualify at prevailing market rates. Smaller builders simply can't compete with that. 

The company's three-to-five-year earnings per share (EPS) growth rate is pegged near 18%. That suggests the market may be underpricing the durability of its model. The primary risk is sustained high rates pushing buydown costs higher and compressing margins further into 2027. 

Lennar (LEN): Pivoting to Asset-Light at Scale Lennar Corp. NYSE: LEN is executing one of the most deliberate strategic pivots in the sector. It is actively moving toward an asset-light model. LEN offloads land development to third-party entities to reduce balance sheet exposure. 

Lennar Today

$94.95 +5.10 (+5.68%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$81.18▼

$144.24Dividend Yield2.11%

P/E Ratio13.64

Price Target$97.27

In Q1 2026, Lennar delivered 16,863 homes, down 5% year-over-year. But new orders rose 1% to 18,515 homes. That order growth matters. It signals demand is holding even as the company reshapes its cost structure. 

The concern is incentive spending. Lennar has been allocating roughly 14% of its sales price to mortgage rate buydowns and closing cost assistance. That preserves volume. It also compresses margins. 

If rates remain elevated through late 2026, that incentive load may have to climb higher still. Investors should watch gross margin trends closely each quarter.

Lennar's scale gives it staying power. But this is a transition story, and transitions carry risk. 

NVR Inc.: The Capital Efficiency Blueprint NVR Inc. NYSE: NVR is architecturally different from its two larger peers. It owns almost no land outright. Instead, it controls lots through options contracts, which give it the right, but not the obligation, to buy. 

NVR Today

$6,470.01 +164.97 (+2.62%)

As of 06/11/2026 04:00 PM Eastern

52-Week Range$5,501.01▼

$8,618.28P/E Ratio15.77

Price Target$7,649.33

That distinction is everything. If market conditions deteriorate, NVR walks away from an option and loses only a small fee. D.R. Horton and Lennar, holding owned land, face a much steeper cost of being wrong. 

That model produces exceptional capital returns. NVR posted a sector-leading return on equity of 34.7% in 2025, which was nearly double the industry average. Berkshire Hathaway has held a long-term stake in NVR, a signal of confidence in the model's durability. 

The tradeoffs are real. NVR's geographic concentration in the Mid-Atlantic and Midwest limits its exposure to the high-growth Sun Belt markets. NVR has a premium valuation, trading around 15x earnings versus the sector's 10–12x average. That leaves less margin for error. However, for investors who prioritize capital efficiency over growth, NVR remains the sector's gold standard. 

Should You Invest $1,000 in D.R. Horton Right Now?Before you consider D.R. Horton, you'll want to hear this.

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, /PRNewswire/ -- NVR, Inc. (NYSE: NVR), one of the nation's largest homebuilding and mortgage banking companies, announced net income for its first quarter ended March 31, 2026 of $198.4 million, or $67.76 per diluted share.  Net income and diluted earnings per share for the first quarter ended March 31, 2026 decreased 34% and 29%, respectively, when compared to 2025 first quarter net income of $299.6 million, or $94.83 per diluted share.  Consolidated revenues for the first quarter of 2026 totaled $1.88 billion, which decreased 22% from $2.40 billion in the first quarter of 2025. 

Homebuilding

New orders in the first quarter of 2026 increased by 7% to 5,738 units, when compared to 5,345 units in the first quarter of 2025. The average sales price of new orders in the first quarter of 2026 was $440,100, a decrease of 2% when compared with the first quarter of 2025.  The cancellation rate in the first quarter of 2026 was 14% compared to 16% in the first quarter of 2025.  Settlements in the first quarter of 2026 decreased by 22% to 4,015 units, compared to 5,133 units in the first quarter of 2025. The decrease in settlements was primarily attributable to a 15% lower backlog balance of homes sold but not settled entering the first quarter of 2026 compared to the same period in 2025. The average settlement price in the first quarter of 2026 was $457,000, which remained relatively flat when compared to the first quarter of 2025. As of March 31, 2026 our backlog of homes totaled 10,171 units, which was flat compared to March 31, 2025, while the dollar value of backlog declined 3% to $4.70 billion.

Homebuilding revenues of $1.83 billion in the first quarter of 2026 decreased by 22% compared to homebuilding revenues of $2.35 billion in the first quarter of 2025.  Gross profit margin in the first quarter of 2026 decreased to 19.6%, compared to 21.9% in the first quarter of 2025.  Gross profit margin was negatively impacted by continued pricing pressure and higher lot costs. Income before tax from the homebuilding segment totaled $224.6 million in the first quarter of 2026, a decrease of 39% when compared to the first quarter of 2025.

Mortgage Banking

Mortgage closed loan production in the first quarter of 2026 totaled $1.05 billion, a decrease of 27% when compared to the first quarter of 2025.  Income before tax from the mortgage banking segment totaled $27.1 million in the first quarter of 2026, a decrease of 17% when compared to $32.5 million in the first quarter of 2025. 

Effective Tax Rate

Our effective tax rate for the three months ended March 31, 2026 was 21.2% compared to 25.5% for the three months ended March 31, 2025.  The decrease in the effective tax rate in the first quarter of 2026 was primarily attributable to a higher income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $12.6 million and $2.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

About NVR

NVR, Inc. operates in two business segments:  homebuilding and mortgage banking.  The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-seven metropolitan areas in sixteen states and Washington, D.C.  For more information about NVR, Inc. and its brands, see www.nvrinc.com, www.ryanhomes.com, www.nvhomes.com and www.heartlandluxuryhomes.com.

Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should," "could," or "anticipates" or the negative thereof or other comparable terminology.  All statements other than of historical facts are forward-looking statements.  Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position and financial results, business strategy, the outcome of pending litigation, investigations or similar contingencies, and projected plans and objectives of management for future operations.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements.  Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; the economic impact of a major epidemic or pandemic; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control.  NVR undertakes no obligation to update such forward-looking statements except as required by law.

NVR, Inc.

Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

Three Months Ended March 31,

2026

2025

Homebuilding:

Revenues

1,834,879

$       2,350,445

Other income

28,049

26,712

Cost of sales

(1,474,539)

(1,835,375)

Selling, general and administrative

(156,971)

(165,117)

Interest expense

(6,854)

(7,181)

Homebuilding income

224,564

369,484

Mortgage Banking:

Mortgage banking fees

46,184

52,587

Interest income

3,629

3,806

Other income

777

1,093

General and administrative

(23,127)

(24,693)

Interest expense

(333)

(273)

Mortgage banking income

27,130

32,520

Income before taxes

251,694

402,004

Income tax expense

(53,335)

(102,428)

Net income

$         198,359

$         299,576

Basic earnings per share

$            71.33

$          100.41

Diluted earnings per share

$            67.76

$            94.83

Basic weighted average shares outstanding

2,781

2,984

Diluted weighted average shares outstanding

2,928

3,159

NVR, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

March 31, 2026

December 31, 2025

ASSETS

Homebuilding:

Cash and cash equivalents

$         1,645,786

$         1,883,844

Restricted cash

40,606

34,348

Receivables

35,423

32,742

Inventory:

Lots and housing units, covered under sales agreements with customers

1,652,220

1,410,695

Unsold lots and housing units

244,499

252,029

Land under development

19,433

39,312

Building materials and other

22,358

21,524

1,938,510

1,723,560

Contract land deposits, net

938,981

851,458

Property, plant and equipment, net

100,899

103,770

Operating lease right-of-use assets

108,985

110,535

Other assets

335,331

349,306

5,144,521

5,089,563

Mortgage Banking:

Cash and cash equivalents

36,281

32,642

Restricted cash

7,014

6,047

Mortgage loans held for sale, net

287,475

571,596

Property and equipment, net

7,892

7,727

Operating lease right-of-use assets

23,035

23,953

Other assets

79,560

125,402

441,257

767,367

Total assets

$         5,585,778

$         5,856,930

NVR, Inc.

Consolidated Balance Sheets (Continued)

(in thousands, except share and per share data)

(unaudited)

March 31, 2026

December 31, 2025

LIABILITIES AND SHAREHOLDERS' EQUITY

Homebuilding:

Accounts payable

$           332,321

$           259,244

Accrued expenses and other liabilities

374,987

376,976

Customer deposits

273,422

249,210

Operating lease liabilities

116,040

117,589

Senior notes

908,662

909,160

2,005,432

1,912,179

Mortgage Banking:

Accounts payable and other liabilities

61,162

53,738

Operating lease liabilities

25,150

26,144

86,312

79,882

Total liabilities

2,091,744

1,992,061

Commitments and contingencies

Shareholders' equity:

Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both March 31, 2026 and December 31, 2025

206

206

Additional paid-in capital

3,202,642

3,155,367

Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both March 31, 2026 and December 31, 2025

(16,710)

(16,710)

Deferred compensation liability

16,710

16,710

Retained earnings

16,585,128

16,386,769

Less treasury stock at cost – 17,823,503 and 17,755,943 shares as of March 31, 2026 and December 31, 2025, respectively

(16,293,942)

(15,677,473)

Total shareholders' equity

3,494,034

3,864,869

Total liabilities and shareholders' equity

$         5,585,778

$         5,856,930

NVR, Inc.

Operating Activity

(dollars in thousands)

(unaudited)

Three Months Ended March 31,

2026

2025

Units

Average
Price

Units

Average
Price

New orders, net of cancellations:

Mid Atlantic (1)

1,917

$     499.3

1,866

$     514.5

North East (2)

469

$     612.0

377

$     695.0

Mid East (3)

1,183

$     425.3

1,098

$     419.9

South East (4)

2,169

$     358.8

2,004

$     356.3

Total

5,738

$     440.1

5,345

$     448.5

Three Months Ended March 31,

2026

2025

Units

Average
Price

Units

Average
Price

Settlements:

Mid Atlantic (1)

1,418

$     520.4

2,050

$     527.9

North East (2)

366

$     657.1

471

$     613.2

Mid East (3)

722

$     430.0

1,013

$     407.1

South East (4)

1,509

$     361.7

1,599

$     354.6

Total

4,015

$     457.0

5,133

$     457.9

As of March 31,

2026

2025

Units

Average
Price

Units

Average
Price

Backlog:

Mid Atlantic (1)

3,659

$     515.7

3,884

$     535.7

North East (2)

1,076

$     625.6

961

$     694.4

Mid East (3)

2,094

$     431.4

2,130

$     422.6

South East (4)

3,342

$     369.6

3,190

$     372.9

Total

10,171

$     462.0

10,165

$     475.9

NVR, Inc.

Operating Activity (Continued)

(dollars in thousands)

(unaudited)

Three Months Ended March 31,

2026

2025

Average active communities:

Mid Atlantic (1)

124

120

North East (2)

31

24

Mid East (3)

99

93

South East (4)

178

164

Total

432

401

Three Months Ended March 31,

2026

2025

Homebuilding data:

New order cancellation rate

14 %

16 %

Lots controlled at end of period

181,700

167,600

Mortgage banking data:

Loan closings

$      1,052,984

$      1,432,922

Capture rate

83 %

86 %

Common stock information:

Shares outstanding at end of period

2,731,827

2,944,615

Number of shares repurchased

90,180

77,120

Aggregate cost of shares repurchased

$        631,956

$        583,394

(1)

Maryland, Virginia, West Virginia, Delaware and Washington, D.C.

(2)

New Jersey and Eastern Pennsylvania

(3)

New York, Ohio, Western Pennsylvania, Indiana and Illinois

(4)

North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky

SOURCE NVR, INC.

Is NVR Inc. (NVR) Still Undervalued After Q1 2026 Miss? EPS $67.76 (miss vs. $79.53 est.), Revenue $1.88B (miss vs. $2.069B est.); GF Score 87/100, 13.3% Undervalued Orders improved, settlements declined, and margins compressed amid pricing pressure and higher lot costs

Q1 2026 revenue was $1.88 billion, down 22% year over year.Diluted EPS was $67.76, down 29% year over year.EPS of $67.76 was below the $79.53 analyst estimate.Revenue of $1.88 billion was below the $2.069 billion analyst estimate.New orders were 5,738 units, up 7% year over year.Settlements were 4,015 units, down 22% year over year.Homebuilding gross margin was 19.6%, down from 21.9% a year ago.Backlog stood at 10,171 units (flat), with backlog value at $4.70 billion (down 3%).Share repurchases totaled 90,180 shares for $631.96 million in Q1. On April 22, 2026, NVR Inc NVR released its 8-K filing reporting first-quarter 2026 results. Net income was $198.4 million, or $67.76 per diluted share, compared with $299.6 million, or $94.83 per diluted share, in the prior-year period. Consolidated revenue was $1.88 billion, down from $2.40 billion a year earlier.

NVR Inc NVR is engaged in the construction and sale of residential properties, including single-family detached homes, townhomes, and condominium buildings, built on a pre-sold basis. The company also provides mortgage banking and title services. Its operating segments are Homebuilding and Mortgage Banking. Geographically, it serves the Mid Atlantic, North East, Mid East, and South East regions of the U.S. The majority of revenue is derived from the Homebuilding Mid Atlantic segment, which includes Maryland, Virginia, West Virginia, Delaware, and Washington, D.C.

Quarterly performance versus expectations Diluted EPS of $67.76 was below the $79.53 analyst estimate. Revenue of $1.88 billion was below the $2.069 billion analyst estimate. Year over year, net income decreased 34% and diluted EPS decreased 29%, reflecting lower settlements and margin compression.

Homebuilding revenue declined 22% to $1.83 billion. Homebuilding income before taxes fell 39% to $224.6 million. Mortgage banking income before taxes decreased 17% to $27.1 million as closed loan production dropped 27% to $1.05 billion.

Homebuilding and demand indicators New orders rose 7% to 5,738 units. The average sales price of new orders decreased 2% to $440,100. The cancellation rate was 14%, down from 16% a year ago, indicating slightly better buyer follow-through. Settlements fell 22% to 4,015 units, driven by a lower entering backlog. Management noted:

The decrease in settlements was primarily attributable to a 15% lower backlog balance of homes sold but not settled entering the first quarter of 2026 compared to the same period in 2025.Backlog units ended the quarter at 10,171 (flat year over year), while backlog value declined 3% to $4.70 billion. Average active communities increased to 432 from 401, and lots controlled rose to 181,700 from 167,600—both supportive of future capacity. The average settlement price was $457,000, relatively flat versus last year.

Homebuilding gross profit margin contracted to 19.6% from 21.9%, with the filing stating:

Gross profit margin was negatively impacted by continued pricing pressure and higher lot costs.Mortgage banking trends Mortgage closed loan production totaled $1.05 billion, down 27% year over year, consistent with lower settlements and a still-challenging rate environment for buyers. The capture rate was 83%, down from 86% in the prior year period. Income before taxes from Mortgage Banking declined 17% to $27.1 million.

Financial statements and capital allocation The effective tax rate was 21.2%, down from 25.5% in the prior-year quarter, aided by stock-option related tax benefits:

The decrease in the effective tax rate in the first quarter of 2026 was primarily attributable to a higher income tax benefit recognized for excess tax benefits from stock option exercises, which totaled $12.6 million and $2.7 million for the three months ended March 31, 2026 and March 31, 2025, respectively.Cash and cash equivalents in the Homebuilding segment were $1.65 billion at March 31, 2026, compared with $1.88 billion at December 31, 2025. Mortgage loans held for sale were $287.5 million, down from $571.6 million at year-end. Total liabilities were $2.09 billion, up from $1.99 billion at year-end, and shareholders’ equity was $3.49 billion, down from $3.86 billion, reflecting significant share repurchases.

NVR repurchased 90,180 shares during the quarter for an aggregate cost of $631.96 million. Diluted weighted average shares outstanding decreased to 2.928 million from 3.159 million a year earlier, which partially offsets EPS pressure in a down revenue environment.

Metric Q1 2026 Q1 2025 Change / Notes Consolidated Revenue $1.88B $2.40B -22% Net Income $198.4M $299.6M -34% Diluted EPS $67.76 $94.83 -29% Homebuilding Revenue $1.83B $2.35B -22% Homebuilding Gross Margin 19.6% 21.9% -230 bps Homebuilding Income (Pre-Tax) $224.6M $369.5M -39% Mortgage Closed Loan Production $1.05B $1.43B -27% Mortgage Banking Income (Pre-Tax) $27.1M $32.5M -17% New Orders (Units) 5,738 5,345 +7% New Order ASP $440,100 $448,500 -2% Settlements (Units) 4,015 5,133 -22% Cancellation Rate 14% 16% Improved Backlog (Units) 10,171 10,165 Flat Backlog (Dollar Value) $4.70B — -3% YoY Effective Tax Rate 21.2% 25.5% Lower Shares Repurchased 90,180 77,120 HigherWhy these metrics matter to homebuilding Orders and cancellation rates are leading indicators of future settlements and revenue. The 7% order growth and lower cancellations suggest stable underlying demand. However, flat unit backlog and a 3% decline in backlog value point to limited near-term growth if conversion does not accelerate. Gross margin compression to 19.6% reflects pricing pressure and higher lot costs, which directly affect profitability in a cost-sensitive, cyclical industry. Active communities and lots controlled (181,700) underpin future land supply and volume potential. In Mortgage Banking, production, capture rate, and gain-on-sale economics influence segment earnings and complement the core homebuilding cycle.

Analysis NVR Inc NVR missed consensus on both revenue and EPS as fewer settlements and lower gross margins outweighed an improving order trend. The mix of higher active communities and increased lots controlled positions the company to meet demand, yet conversion from backlog remains the key swing factor after a 22% decline in settlements. Margin headwinds from pricing and lot costs pressured profitability, while mortgage production fell alongside lower home closings. A lower tax rate provided a partial offset. Robust buybacks reduced the share count and supported per-share results, but the pace of repurchases also lowered shareholders’ equity.

GuruFocus Valuation Check Based on GuruFocus’s proprietary model, the GF Value for NVR Inc NVR is $7,677.14 versus a current price of $6,655.07, indicating the shares appear 13.3% undervalued. This suggests a margin of safety according to the GF Value framework.

The company’s GF Score is 87/100, which is considered strong. Financial Strength is 9/10 and Profitability Rank is 9/10, underscoring a solid balance sheet and consistent earnings power typical of high-quality operators in homebuilding. Growth Rank is 6/10, pointing to moderate expansion prospects, while a 5-star Predictability rating highlights a historically stable performance pattern. A Moat Score of 6/10 implies notable competitive advantages, albeit in a cyclical and competitive industry.

Insider Activity shows insiders sold $9.0 million over the last three months with no reported buying, which is a data point that may warrant caution for some investors. For a deeper dive, visit the NVR Inc stock page on GuruFocus.

Explore the complete 8-K earnings release (here) from NVR Inc for further details.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Homebuilders have been going through a rough patch as of late. Across top homebuilding stocks, analysts expected revenues and earnings to fall considerably in Q1 2026, and this is exactly what happened.

For over a year, stocks in this industry have been range-bound. The SPDR S&P Homebuilders ETF NYSEARCA: XHB is a commonly used proxy for this industry, tracking the performance of over 30 homebuilders or housing-related stocks. The fund has delivered an approximate total return of just 5% since the start of 2025. With interest rates still relatively high and housing affordability low, stocks in this space have struggled to gain much momentum.

Three of the top U.S. homebuilders just reported earnings; here’s how they stacked up and what it signals about the industry going forward.

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Pulte’s EPS Falls 30%, Analysts Point to Moderate UpsidePulte Group NYSE: PHM is one of the more diversified U.S. homebuilders targeting a balanced mix of market segments. In Q1, 38% of the company’s sales came from first-time buyers, while “move-up” buyers accounted for 39%. Its “active adult” buyer group, which includes sales in 55+ communities, accounted for 23% of sales.

PulteGroup Today

$123.88 +5.39 (+4.55%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$98.27▼

$144.49Dividend Yield0.84%

P/E Ratio11.98

Price Target$140.71

Pulte saw its sales fall by 12% year over year (YOY) to $3.41 billion, essentially in line with estimates.

The significant decline came even as the company offered much greater incentives to home buyers. This led to a substantial 310 basis point compression in gross home sales margin.

In turn, adjusted earnings per share (EPS) tanked by just over 30% to $1.79, 1 cent short of estimates. The company’s new orders grew moderately by 3% YOY, similar to the 4% increase seen in Q4 2025, but Pulte did not change its guidance for the full year.

Still, Pulte saw a modest 2.4% gain after its report, indicating that the results were better than some investors had feared.

Several analysts tracked by MarketBeat raised their price targets after the report, with updates averaging around $147. This figure implies healthy upside in shares and is slightly above the MarketBeat consensus price target of around $141.

D.R. Horton Outperforms Against Low Expectations, Targets SpreadHomebuilding behemoth D.R. Horton NYSE: DHI was a clear standout. The company, which focuses on first-time home buyers, posted revenue of $7.56 billion. This marked a moderate 2% YOY drop, roughly in line with expectations and by far the best figure among this group. The firm also posted a solid bottom-line beat, with adjusted EPS of $2.24 versus estimates of $2.15. The figure fell by 13% YOY.

D.R. Horton Today

$153.99 +7.28 (+4.96%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$119.54▼

$184.54Dividend Yield1.17%

P/E Ratio14.43

Price Target$168.54

Forward-looking metrics were particularly strong, with home orders rising by 11% YOY, the highest rate among these names. The company did slightly lower the top end of its full-year guidance to $34.5 billion, but its midpoint estimate of $34 billion still exceeded estimates.

D.R. Horton also saw considerable margin compression, with the firm’s adjusted home sales gross margin declining by 230 basis points to 19.7%. Overall, these results allowed DHI shares to soar by nearly 6% post-earnings.

The MarketBeat consensus price target near $169 implies only around 5% upside in shares. Notably, all analysts who issued updates after the report raised their price targets; however, updated targets averaged around $165. They also showed significant variance, ranging from $206 to $123. These figures imply upside of more than 25% and downside of more than 20%, respectively.

NVR: Sales Plummet, Order Growth Ticks UpNVR NYSE: NVR sits more in the middle of the market, with its average home selling price coming in at $457,000 in Q1 2026. This was squarely between Pulte’s $542,000 average selling price and D.R. Horton’s $362,000, showing the differences in income among their respective customers.

NVR Today

$6,470.01 +164.97 (+2.62%)

As of 06/11/2026 04:00 PM Eastern

52-Week Range$5,501.01▼

$8,618.28P/E Ratio15.77

Price Target$7,649.33

The company saw its revenues take a 21.7% hit, falling to $1.91 billion. This significantly missed the estimates of $2.09 billion. EPS fell by 28.6% to $67.76, missing estimates of $79.97 by a wide margin. The company’s gross margin compression mirrored D.R. Horton, with the figure falling 230 basis points to 19.6%.

However, like the other two names, new orders saw a moderate increase, rising by 7%. This was an improvement over the 4% increase in the prior quarter. NVR’s average selling price remained flat YOY, while the metric fell by 3% at Pulte and 5% at D.R. Horton. Combined with rising orders, this is a positive sign for NVR, showing that the company isn’t compromising on price to drive demand. Notably, NVR does not provide forward guidance. NVR shares fell 4.7% following the results.

Multiple analysts dropped their targets after the report, with updates averaging approximately $7,465, moderately below the consensus target near $7,650. This updated average target implies just under 15% upside in shares.

Homebuilders Continue to Face a Difficult EnvironmentEarnings across these three names showed a trend: revenue and margin hits across the industry. D.R. Horton was a bright spot, with the lowest sales decline and the highest order growth. Encouragingly, orders rose across all names, but the industry is still in a rut. Price targets remain relatively subdued, but point to upside ahead, indicating a degree of optimism among the analyst community.

Fixed rates on 30-year mortgages briefly fell below 6% prior to the conflict in the Middle East. Rates have since risen back to 6.2%. A clear end to the conflict would be a meaningful positive for homebuilders, likely helping rates approach 6% again, improving demand.

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NVR, Inc. (NVR) is upgraded from Sell to Hold as forward indicators improve, but P&L remains under pressure. Q1 2026 saw new orders rise 7% y/y, community count increase, and cancellations improve, signaling demand stabilization. Despite better forward metrics, revenue fell 22% y/y, gross margin declined 230bps, and homebuilding income before tax dropped 39% y/y.

The housing market has been nearly frozen since the pandemic.

A combination of high mortgage rates and the "lock-in effect" from low rates during the pandemic has kept existing home sales at unusually low levels and has pushed up home prices as there's not enough inventory for prospective buyers.

As the chart below shows, existing home sales have been hovering around an average annual rate of 4 million, well below the 5.5 million they were at before the pandemic.

US Existing Home Sales data by YCharts

The lack of available homes for sale has created an opportunity for homebuilders, and for a while, they were taking advantage of that, but homebuilder stocks have slumped since peaking in late 2024 as expectations for interest rate cuts only modestly materialized, and a weakening labor market has pressured demand.

Now, homebuilder stocks are falling again as mortgage rates move higher due to the war in Iran.

Image source: Getty Images.

Mortgage rates are going up Mortgage rates hit their highest level since April 3, with rates on the 30-year fixed mortgage rising to 6.45%, according to Mortgage News Daily.

As the blockade of the Strait of Hormuz continues, investors seem to be betting that interest rates are more likely to go up as inflation makes rate cuts less likely from the Fed, and could even persuade the central bank to raise rates.

Mortgage applications jumped 21% from a year ago last week, according to the Mortgage Bankers Association, showing increasing interest in home-buying as the spring season enters its peak.

NYSEMKT: XHBSPDR Series Trust - State Street SPDR S&P Homebuilders ETF

Today's Change

(

4.20

%) $

4.35

Current Price

$

107.83

Homebuilder stocks have mostly slipped this week and have had mixed results over the last year.

If you're looking to get exposure to the sector, an easy way to do it is with an ETF like State Street SPDR S&P Homebuilders ETF (XHB +4.20%), which holds homebuilders like D.R. Horton (DHI +5.26%) and Lennar, as well as building materials companies like Owens-Corning and home furnishing companies like Williams-Sonoma, which tend to be exposed to similar forces as homebuilders. The ETF currently trades at a price-to-earnings ratio of 17.5.

Homebuilders that have reported earnings this quarter have mostly delivered middling results. At D.R. Horton, the country's largest homebuilder, revenue fell 2.3% to $7.56 billion, and earnings per share declined as well, even as the company aggressively bought back stock over the last year.

NVR's (NVR +2.77%) revenue declined 22% to $1.88 billion, and Pulte Group (PHM +4.65%) reported a 12% decline in revenue to $3.41 billion.

Considering those results, it's clear that the weakness in the housing market remains, and a surge in homebuilding seems unlikely without lower interest rates, especially with the labor market weak.

Outgoing Fed Chair Jerome Powell was careful to not promise any moves by the Fed, and noted the uncertainty from the war, but some oil executives have said that high prices and disruptions could persist through 2027.

Against that backdrop, homebuilder stocks look set to remain stuck in neutral for the foreseeable future. While there remains a housing shortage in the country, and we could see a surge in home sales and homebuilding if rates come down, that could still be years away.

Wall Street is rediscovering the stock split playbook. In May 2026, KLA (NASDAQ: KLAC | KLAC Price Prediction) announced a 10-for-1 forward stock split alongside a fiscal Q3 earnings beat and a roughly 21% dividend hike, with shares trading in the $1,800 range.

The stock split is back in fashion. Yet a small club of high-priced names has refused to play along for decades, even as peers embrace splits to court retail investors.

Four stand out: AutoZone (NYSE: AZO | AZO Price Prediction) has not split since its 1991 IPO, Goldman Sachs (NYSE: GS) has not split since 2000, NVR (NYSE: NVR) has never split, and TransDigm (NYSE: TDG) has historically returned capital through special dividends. None has announced a split or telegraphed board action. The ranking below counts down from the most entrenched holdout to the one most likely to budge.

4. NVR: The Permanent Holdout The homebuilder carries the highest absolute share price of the four, closing at $6,032.82 on May 26, 2026, with a market cap of roughly $16.3 billion. Q1 2026 was rough: EPS of $67.76 missed the $79.20 consensus estimate, with revenue down 22% year over year and homebuilding settlements off 22%.

CEO Eugene Bredow personally bought 60 shares at $5,776.15 on May 14, 2026, and 80 shares at $6,262.53 on May 6. When insiders happily write four-figure checks per share, splitting the float is not on the agenda. NVR also just authorized a fresh $750 million share buyback. Capital return runs entirely through repurchases.

3. AutoZone: 30+ Years of Stubborn The specialty retailer trades at $3,100.11 a share, down 19.0% over the past year, with a market cap near $51.4 billion and a trailing P/E of 22x. Q3 FY2026 delivered EPS of $38.07 versus $36.17 expected, with revenue up 8.4% year over year.

CEO Phil Daniele has not entertained a split publicly. Capital allocation is all buyback: $586.3 million repurchased in Q3 at $3,582 per share, with $804.2 million remaining. Cumulative buybacks since 1998 hit $38.9 billion, leaving shareholders’ equity negative. There is no dividend program. AutoZone treats a high share price as a deliberate strategic feature. The case for a split is purely cosmetic; the case against it is institutional inertia.

2. TransDigm: The Special-Dividend School The aerospace manufacturer’s stock closed at $1,226, with a market cap of $68.6 billion and a forward P/E of 38x. Q2 FY2026 was strong: adjusted EPS of $9.85 versus $9.31 expected, revenue up 18.3% year over year, and EBITDA margin of 52.6%. Management raised FY2026 guidance to sales of $10.30 billion to $10.42 billion.

TransDigm’s identity centers on M&A and large one-time special dividends over retail-friendly optics. CEO Mike Lisman is busy closing deals, including the recently completed $2.20 billion Jet Parts Engineering and Victor Sierra acquisition, and the pending $960 million Stellant transaction. The lowest share price of the four softens any urgency. A split is conceivable only if leadership decides to court a broader retail base, which is not the current playbook.

1. Goldman Sachs: The Most Plausible Candidate Goldman Sachs closed at $994.52, up 66.2% over the past year, with a market cap of roughly $293 billion. Q4 2025 delivered EPS of $14.01 versus $11.76 expected, a 19.13% beat. Management raised the dividend 12.5% to $4.50 per share, and the firm bought back $12.36 billion of stock in 2025, with roughly $32 billion in capacity remaining.

CEO David Solomon told shareholders the firm has grown “revenues by 60%, improved returns by 500 basis points and delivered total shareholder returns of more than 340%” since its first Investor Day, and expects momentum to “accelerate in 2026.” Goldman has the lowest absolute share price of the four, a retail-investor-facing brand, an active dividend program, and broad employee stock compensation that benefits from a friendlier per-share quote. Prediction markets show zero contracts tracking a Goldman split, and management has signaled nothing.

Key Takeaway for Investors Splits are cosmetic. Market cap, intrinsic value, and fundamentals are unchanged by reslicing the pie. What can shift is retail demand, options accessibility, and short-term sentiment. None of these four companies has announced or signaled a split. Among them, Goldman Sachs carries the cleanest combination of dividend culture, brand recognition, and an employee comp structure that would benefit from a more accessible share price. If any of the four finally budges, the smart money looks to 200 West Street first.

The housing market remains a focal point for investors, making the choice between Lennar (LEN +5.68%)and D.R. Horton (DHI +5.26%)a critical decision for those seeking exposure to residential construction.

Lennar focuses on high-tech homebuilding and financial services, while D.R. Horton maintains its position as the nation's largest builder by volume. Both companies must navigate high interest rates and shifting demographics, but they utilize different land-acquisition strategies and product mixes to capture demand in a changing economic landscape.

The case for LennarLennar operates as a major homebuilder with a geographic footprint spanning 26 states, including high-growth markets in Florida, Texas, and California. The company delivered more than 82,500 new homes in 2025, serving a wide range of buyers from first-time homeowners to luxury clients. It also operates segments for mortgage loans and title insurance, which integrate the home-buying experience for its customers.

In FY 2025, revenue reached nearly $34.2 billion. This figure represented a decrease of approximately 3.5% compared to the previous year, reflecting broader market shifts in the housing industry. Net income for the period was close to $2.1 billion, resulting in a net margin of roughly 6.1%, which measures the percentage of revenue remaining after all expenses are paid.

As of its November 2025 balance sheet, the debt-to-equity ratio was approximately 0.3x. This ratio measures total debt relative to shareholder equity, indicating the company maintains a conservative level of leverage. The current ratio, which measures the ability to pay short-term debts with short-term assets, was roughly 3.1x. Free cash flow, or the cash remaining after capital expenditures, was nearly $28.2 million. Note that stock-based compensation accounted for roughly 75.4% of operating cash flow, thereby inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.

The case for D.R. HortonD.R. Horton is the largest homebuilder in the United States by volume, operating in 126 markets across 36 states. The company focuses heavily on the entry-level market, providing affordable options for buyers who are often sensitive to pricing and interest rates. Its massive scale provides a competitive advantage when participating among consumer discretionary stocks by allowing for better negotiations with suppliers and subcontractors.

For FY 2025, revenue was approximately $34.3 billion. This was a decline of nearly 6.9% compared to the prior year, as the builder faced a more challenging interest rate environment. Despite the revenue dip, the company reported net income of roughly $3.6 billion. This resulted in a net margin of approximately 10.5%, highlighting the company's ability to maintain profitability even during periods of lower volume.

As of its September 2025 balance sheet, the current ratio stood at close to 17.4x. Its debt-to-equity ratio was roughly 0.2x, suggesting the company carries a low amount of debt compared to its equity base. Free cash flow for the year totaled approximately $3.3 billion, providing significant flexibility for shareholder returns or future land acquisitions. Note that stock-based compensation was not a major factor in its cash flow reporting for this period.

Risk profile comparisonLennar faces risks related to the cyclical nature of the housing market, where inflation and interest rates can suddenly dampen demand. The company relies on a land-light strategy that uses options, which could be disrupted if land banks fail to honor contracts or face financial distress. Competition from other large builders, such as PulteGroup(PHM +4.65%) and NVR(NVR +2.77%), also puts pressure on Lennar to maintain its pricing power and delivery schedules.

D.R. Horton is similarly exposed to interest rate volatility, which directly impacts the affordability of its entry-level homes. The company also faces supply chain risks, including shortages of materials such as lumber or drywall, which can delay construction and increase costs. It competes for market share with firms such as KB Home(KBH +4.12%) and Toll Brothers(TOL +5.98%), requiring constant investment in new land and labor to maintain its leading volume position.

Valuation comparisonD.R. Horton appears slightly cheaper based on future earnings estimates, though Lennar offers a more attractive valuation based on its total sales volume.

MetricLennarD.R. HortonSector BenchmarkForward P/E14.5x13.7x29.6xP/S ratio0.7x1.2xSector benchmark uses the SPDR XLY sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

The success of homebuilders depends on many factors, including mortgage rates, affordability concerns, and homebuyers’ willingness to purchase in an uncertain economy. Both D.R. Horton and Lennar face the same challenges and offer similar products. The question is, which company has the more effective strategy?

D.R. Horton has an asset-light land strategy. Unlike the traditional homebuilding model of buying land, developing it, and then selling homes, Horton uses options agreements and partners with developers to buy lots as needed, so its capital isn’t tied up in land ownership. This works well in uncertain housing markets because there’s less risk of sitting on property that won’t sell.

Lennar is also worth considering, however. It’s one of the largest homebuilders in the country and has rewarded its shareholders through buybacks and dividends. It’s a cyclical industry, and if mortgage rates decline and housing demand rises, the entire homebuilding industry should benefit, including Lennar.

If I were choosing between the two today, however, I’d pick D.R. Horton. This company appears to have a better plan to handle an uncertain market. Horton's stronger cash flow and capital efficiency should continue to benefit shareholders. If the housing market improves, both companies could grow. But if conditions remain challenging, I'd rather own the company that appears better positioned to weather the downturn.