Hints and tips:
...Shares in DR Horton, Lennar and NVR have dropped more than 16 per cent since their peak in July. Those of PulteGroup, which had surged 86 per cent in 2023 until August, are down by a similar amount....
...Shares in DR Horton, Lennar and NVR, which Berkshire disclosed it owned this week, have risen about a third apiece this year, far outpacing the S&P 500 stock index....
...Berkshire disclosed it had purchased 6mn shares of DR Horton, worth about $726mn at the end of the second quarter, as well as 152,572 shares in Lennar and 11,112 shares of NVR....
...Shares in the country’s big builders — DR Horton, Lennar, NVR, PulteGroup and Toll Brothers — have all pulled back to trade at or just slightly above book value....
...DR Horton, Lennar, NVR and PulteGroup — whose shares have all been boosted by ultra-low interest rates this year — are down between 8 and 15 per cent over the period. The pullback is understandable....
...Among its sector peers, MDC Holdings gained 4.7 per cent, NVR added 4.5 per cent and Taylor Morrison was up 4.2 per cent. Lennar Corporation gained 3.8 per cent and PulteGroup was up 3.6 per cent....
...The amount of inventories mis-categorised as below-cost NVR in 2016 was $107m....
...Shares in other large housebuilders also retreated, with Lennar down 1.2 per cent, NVR dropping 0.9 per cent and DR Horton, the country’s largest by market value, easing 0.3 per cent....
...Toll Brothers shares fell 5 per cent to $33.95, NVR declined 2 per cent to $1,146.57 and PulteGroup slipped 4 per cent to $18.18....
...NVR shares gained 0.4 per cent to $1,150.60 and PulteGroup shares increased 0.4 per cent to $20.16....
...Peer Lennar dipped 3 per cent to $39.26 and NVR fell 3 per cent to $1,131.67....
...Horton, the largest US residential housebuilder, fell 1 per cent to $23.48, and shares in NVR construction fell 0.2 per cent to $1,119.83....
...PulteGroup shares advanced 2.3 per cent to $18.99 while rival Lennar rose 3.5 per cent to $39.51 and NVR increased 3.3 per cent to $1,068.21....
...“NVR isn’t taking a bet on whether land prices will go up or down“ NVR outperformed the sector, off just 0.04 per cent on the day at $636.50....
...Rival NVR lost 1.4 per cent to $727.44 as the stock was also downgraded to “neutral” from “outperform” at Credit Suisse with a target price of $750 per share....
...Renaissance held 1.1 per cent of the shares outstanding of NVR Inc, a Virginia construction and home-building company....
...NVR, whose rating was cut to “sell” from “buy”, gained 2.4 per cent to $696.05....
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