4. NVR, Inc. (NYSE:NVR)
Number of Hedge Fund Holders: 45
The American home builder NVR, Inc. (NYSE:NVR) is headquartered in Reston, Virginia. The company sells and constructs homes under three brand names including Ryan Homes, NVHomes, and Heartland Homes. The firm operates in two segments which include homebuilding and mortgage banking.
NVR, one of the largest homebuilders in the United States, builds homes in 36 metropolitan areas in sixteen states and Washington, D.C. Historically, the firm claims to be one of the market leaders in each of the markets where it constructs homes. Bretton Capital Management, an investment management company, stated the following about NVR in “Bretton Fund” fourth quarter 2024 investor letter:
“Thirty-year traditional mortgage rates were over 6% for all of 2024, the highest they have been since the 2008 financial crisis, a sharp change from 2021 when they were below 3% for part of the year. Existing house sales hit their lowest levels since 1995, and new housing starts were down 4% from 2023. Lean times for the real estate industry. NVR, Inc. (NYSE:NVR) seems to have not noticed these market trends. They sold 22,560 houses in 2024, 21,540 in low-interest-rate 2021, and 19,668 in pre-Covid 2019. They keep grinding away with their basic business model, and they keep driving their earnings and buying back stock. In 2019, NVR earned $221 per share; in 2024, selling only 15% more houses, they earned $507 per share. NVR stock gained 17% on the year.”
For its fourth quarter ended December 31, NVR, Inc. (NYSE:NVR) witnessed its net income climb 12% and diluted earnings per share rise 15% over the year. Consolidated revenues for the quarter increased 17% year-over-year. Homebuilding revenues increased by 16% from $2.39 billion in the fourth quarter of 2023 to $2.78 billion in the fourth quarter of 2024.
