15 Small-Cap Construction and Materials Stocks Hedge Funds Are Buying

5. NVR Inc. (NYSE:NVR)

Market Capitalization as of April 28: $20.88 billion

Number of Hedge Fund Holders: 45

NVR Inc. (NYSE:NVR) operates as a homebuilder in the US. It operates through the Homebuilding and Mortgage Banking segments. It engages in the construction and sale of single-family detached homes, townhomes, and condominium buildings under different brand names.

NVR’s Homebuilding segment reported revenues of $2.35 billion in Q1 2025, which represents a 3% increase year-over-year. This growth was driven by a 1% increase in settlements to 5,133 units and a 2% increase in the average settlement price to $457,900. However, the segment experienced a decrease in new orders by 12% to 5,345 units, and the average sales price of new orders decreased by 1% to $448,500.

The cancellation rate also increased to 16% from 13% in the prior year. On April 17, BofA analyst Rafe Jadrosich lowered the price target on NVR Inc. (NYSE:NVR) to $8,400 from $9,300 while keeping a Buy rating on the shares. This sentiment reflects softer demand at the company. Additionally, BofA expects a challenging environment for homebuilders to continue into H2 2025.

Diamond Hill Large Cap Strategy stated the following regarding NVR, Inc. (NYSE:NVR) in its Q3 2024 investor letter:

“Among our top individual contributors in Q3 were Parker-Hannifin, NVR, Inc. (NYSE:NVR) and SBA Communications. Homebuilder NVR benefited from limited existing home sales, combined with still-strong new home buyer demand. Looking forward, lower interest rates may spur further demand.”