NVR (NVR) is Trading High Despite Industry Headwinds

Ensemble Capital Management, an investment management company, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy returned 3.48% in the first quarter compared to 7.50% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Ensemble Capital highlighted stocks like NVR, Inc. (NYSE:NVR) in the first quarter 2023 investor letter. Headquartered in Reston, Virginia, NVR, Inc. (NYSE:NVR) is a home builder. On April 20, 2023, NVR, Inc. (NYSE:NVR) stock closed at $5,892.71 per share. One-month return of NVR, Inc. (NYSE:NVR) was 8.86%, and its shares gained 37.59% of their value over the last 52 weeks. NVR, Inc. (NYSE:NVR) has a market capitalization of $19.137 billion.

Ensemble Capital made the following comment about NVR, Inc. (NYSE:NVR) in its Q1 2023 investor letter:

“NVR, Inc. (NYSE:NVR) (+20.80%): Despite the large decline in home sales, a decline in home prices, and mortgage rates that are still twice as high as the lows of 2021, NVR’s stock is trading at its all-time high other than a brief period from December 2021 to January 2022. Our investment thesis on housing related stocks has been that the very low levels of new home building between the great financial crisis and COVID created a significant shortage of single family housing. While NVR, like all home builders, are seeing the impact of higher mortgage rates on their business, the inventory of existing homes on the market today stands at record low levels. The lack of existing homes available for sale, something we think will persist due to existing homeowners having locked in low mortgage rates and so not being interested in moving unless they have to, means that the home buyers who do want to buy a home will need to turn more frequently to the new home market.”

Photo by Breno Assis on Unsplash

NVR, Inc. (NYSE:NVR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held NVR, Inc. (NYSE:NVR) at the end of the fourth quarter which was 34 in the previous quarter.

We discussed NVR, Inc. (NYSE:NVR) in another article and shared Diamond Hill Small-Mid Cap Strategy’ views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.