Shares of NVR Inc. (NYSE:NVR) popped Tuesday on a company announcement shortly after noon that its board had approved the repurchase of $300 million in the company's common stock.

In the announcement, the company said the repurchase was a "continuation of the stock repurchase program that began in 1994 and is consistent with NVR's strategy of maximizing shareholder value." It also said the "purchases will occur from time to time in the open market and/or in privately negotiated transactions as market conditions permit."

The stock, which had been trading down all morning, immediately turned around to a gain of more than 5% to $740.45.