Is NVR, Inc. (NVR) A Good Stock To Buy Right Now?

Seeing as NVR, Inc. (NYSE:NVR) has witnessed declining sentiment from the smart money, it’s safe to say that there were a few hedge funds who sold off their positions entirely by the end of the third quarter. Intriguingly, Jeff Lignelli’s Incline Global Management sold off the largest position of the 700 funds followed by Insider Monkey, comprising close to $29.1 million in stock, and Brad Dunkley and Blair Levinsky’s Waratah Capital Advisors was right behind this move, as the fund dropped about $13.5 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as NVR, Inc. (NYSE:NVR) but similarly valued. We will take a look at Apartment Investment and Management Co. (NYSE:AIV), American Campus Communities, Inc. (NYSE:ACC), NetApp Inc. (NASDAQ:NTAP), and Jack Henry & Associates, Inc. (NASDAQ:JKHY). This group of stocks’ market valuations are closest to NVR’s market valuation.

As you can see these stocks had an average of 18.5 hedge funds with bullish positions and the average amount invested in these stocks was $216 million. That figure was $591 million in NVR’s case. NetApp Inc. (NASDAQ:NTAP) is the most popular stock in this table. On the other hand Jack Henry & Associates, Inc. (NASDAQ:JKHY) is the least popular one with only 13 bullish hedge fund positions. NVR, Inc. (NYSE:NVR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NTAP, which we analyzed a few days ago, might be a better candidate to consider a long position.