Will You Invest in NVR for the Long-Term?
Ensemble Capital Management, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy outperformed its benchmark, the S&P 500, after three consecutive quarters. The strategy declined 2.6% compared to a 4.9% decline for the S&P 500 Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Ensemble Capital discussed stocks like NVR, Inc. (NYSE:NVR) in the Q3 2022 investor letter. Headquartered in Reston, Virginia, NVR, Inc. (NYSE:NVR) is a US-based homebuilder. On October 17, 2022, NVR, Inc. (NYSE:NVR) stock closed at $4,034.74 per share. One-month return of NVR, Inc. (NYSE:NVR) was -1.22% and its shares lost 19.86% of their value over the last 52 weeks. NVR, Inc. (NYSE:NVR) has a market capitalization of $13.245 billion.
Here is what Ensemble Capital specifically said about NVR, Inc. (NYSE:NVR) in its Q3 2022 investor letter:
“NVR, Inc. (NYSE:NVR): The US housing market has been unstable so far this year, as rising mortgage rates and higher housing prices have rapidly reduced affordability. Fortunately for existing homeowners, most of whom own their houses outright or have locked in low, fixed mortgage rates, rising rates have not directly impacted their finances unless they have an outstanding variable-rate home equity line of credit.
Homebuilders, who rely on incremental demand for housing, have seen demand dry up in response to declining affordability. Single-family home building permits have plummeted in recent months back to pre-pandemic levels.
That’s the bad news. On the bright side, the building materials supply chain, which delayed construction and increased the cost to build a home, is rapidly improving. This bodes well for homebuilders like NVR with a track record of cost discipline. In other words, even if NVR’s average selling price declines, it can maintain attractive gross margins if they simultaneously control costs…” (Click here to read the full text)
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NVR, Inc. (NYSE:NVR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held NVR, Inc. (NYSE:NVR) at the end of the second quarter, which was 39 in the previous quarter.
We discussed NVR, Inc. (NYSE:NVR) in another article and shared Diamond Hill Capital's views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
