AOL Money & Finance

NVR announces buyback -- stock soars

Posted Jul 31st 2007 2:40PM by Kevin KellyKevin Kelly RSS Feed
Filed under: Major movement, Press releases, Insiders, Housing

More

Moments ago, homebuilder NVR (AMEX: NVR) announced a $300 million share buyback plan. According to a news report, the buyback will be performed on the public market as well as through privately negotiated transactions. NVR, like every other homebuilder, has been getting killed in recent months due to the grim housing market.

I love seeing this, especially for a stock like NVR. Although I don't think homebuilders have bottomed for the short term, over the long term I believe most of them are tremendous values. Despite the housing slowdown, NVR still trades for just 15x next year's earnings and 6-7x earnings in a positive housing cycle. I think this buyback shows that management is committed to NVR and strongly believes in the company's long term potential.

Not only is this a logical move financially, but this move has appeased traders who have sent the stock quickly up about 40 points since the announcement. Traders love buybacks because they put a "floor" in a stock's price.

Tags: homebuilders, inthenews, nvr, NVR Inc, NvrInc, stock buyback, StockBuyback

Symbol Lookup
IndexesChangePrice
DJIA+30.6910,464.40
NASDAQ+6.872,176.05
S&P 500+4.981,110.63

Last updated: November 25, 2009: 10:55 PM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

  • My Portfolio
  • Create a New Portfolio

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines