Lennar Corporation (NYSE:LEN) Receives Consensus Rating of “Reduce” from Brokerages

Shares of Lennar Corporation (NYSE:LEN) have earned a consensus recommendation of “Reduce” from the eighteen research firms that are currently covering the stock, Marketbeat reports. Ten equities research analysts have rated the stock with a sell rating, seven have given a hold rating and one has given a buy rating to the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $79.86.

Several equities analysts recently weighed in on the stock. Benchmark raised shares of Lennar to a “hold” rating in a research report on Thursday, September 3rd. Evercore boosted their price objective on Lennar from $82.00 to $87.00 and gave the stock an “underperform” rating in a report on Monday, June 15th. Weiss Ratings reissued a “sell (d+)” rating on shares of Lennar in a research note on Tuesday, September 8th. Citizens Jmp reaffirmed a “hold” rating on shares of Lennar in a research report on Thursday, September 17th. Finally, JPMorgan Chase & Co. decreased their price target on Lennar from $80.00 to $77.00 and set an “underweight” rating for the company in a report on Tuesday, June 16th.

Lennar Price Performance

LEN stock opened at $74.31 on Tuesday. The company has a debt-to-equity ratio of 0.20, a current ratio of 4.94 and a quick ratio of 0.69. The company’s 50-day moving average is $83.52 and its 200-day moving average is $86.85. The stock has a market capitalization of $17.90 billion, a PE ratio of 14.05, a price-to-earnings-growth ratio of 3.00 and a beta of 1.36. Lennar has a 1 year low of $73.75 and a 1 year high of $133.76.

Lennar (NYSE:LEN) last issued its earnings results on Wednesday, September 16th. The construction company reported $1.23 EPS for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). The firm had revenue of $8.05 billion during the quarter, compared to the consensus estimate of $8.32 billion. Lennar had a net margin of 4.09% and a return on equity of 6.15%. The business’s quarterly revenue was down 8.7% on a year-over-year basis. During the same period in the previous year, the firm earned $2.00 earnings per share. Equities research analysts expect that Lennar will post 4.87 EPS for the current fiscal year.

Lennar Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 22nd. Stockholders of record on Wednesday, October 7th will be paid a $0.50 dividend. The ex-dividend date is Wednesday, October 7th. This represents a $2.00 annualized dividend and a dividend yield of 2.7%. Lennar’s dividend payout ratio is presently 37.81%.

Insider Activity at Lennar

In other news, major shareholder Berkshire Hathaway Inc purchased 1,708,095 shares of the company’s stock in a transaction that occurred on Friday, October 2nd. The shares were bought at an average cost of $79.44 per share, with a total value of $135,691,066.80. Following the completion of the transaction, the insider directly owned 28,438,045 shares of the company’s stock, valued at approximately $2,259,118,294.80. This trade represents a 6.39% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders have bought a total of 7,502,276 shares of company stock valued at $595,303,287 in the last three months. Corporate insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Lennar

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Polaris Financial Partners bought a new position in shares of Lennar in the third quarter valued at approximately $27,000. Phillip James Consulting Co. bought a new stake in Lennar during the first quarter worth $30,000. Global Assets Advisory LLC purchased a new position in Lennar in the first quarter worth $39,000. Anchor Investment Management LLC boosted its position in Lennar by 1,276.4% in the second quarter. Anchor Investment Management LLC now owns 757 shares of the construction company’s stock worth $69,000 after purchasing an additional 702 shares during the last quarter. Finally, Elevation Wealth Partners LLC grew its stake in Lennar by 1,272.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 796 shares of the construction company’s stock valued at $72,000 after purchasing an additional 738 shares during the period. Hedge funds and other institutional investors own 81.10% of the company’s stock.

Lennar News Roundup

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway increased its Lennar position. Berkshire purchased 710,542 shares on October 1 and another 1,708,095 shares on October 2, investing roughly $193 million across the two disclosed transactions. Its holdings rose to 28.44 million shares, reinforcing Warren Buffett’s confidence in the homebuilder and providing potential support for the stock. Berkshire Buys More Lennar Stock
• Positive Sentiment: Long-term housing investment thesis remains intact. Reports highlighted that Berkshire is building a significant housing-related portfolio despite industry weakness, suggesting it views Lennar’s valuation and long-term housing demand favorably. Berkshire Hathaway Housing Investment
• Neutral Sentiment: Investor-law firms announced investigations. Block & Leviton is examining potential securities-law violations involving Lennar, while Julie & Holleman is investigating alleged misconduct related to transactions between Lennar and Millrose Properties. These announcements are not findings of wrongdoing but may add uncertainty and headline risk. Lennar Investor Investigation
• Negative Sentiment: Fundamental and housing-market pressures remain significant. High mortgage rates, weaker affordability, declining home prices and sharp gross-margin compression are weighing on Lennar’s outlook. The company’s latest quarterly results also missed analyst expectations, with earnings per share of $1.23 versus a $1.29 consensus and revenue down 8.7% year over year. Lennar Housing-Market Pressures
• Negative Sentiment: Recent negative coverage intensified selling pressure. Lennar’s shares fell sharply after publication of a report questioning the company, adding to concerns about earnings performance and the broader housing downturn. Negative Lennar Report

About Lennar

Lennar Corporation (NYSE: LEN) is a homebuilding company that designs, constructs and sells single-family homes and, through its multifamily operations, develops apartment communities. Its residential offerings generally include homes across a range of sizes and prices, serving first-time, move-up and active-adult buyers.

The company also provides related services through businesses involved in mortgage financing, title and closing services, insurance and other real estate activities. Lennar develops residential communities and manages land acquisition, planning and construction as part of its integrated homebuilding model.

Founded in 1954, Lennar has expanded from its origins in South Florida into a national homebuilder serving numerous markets across the United States.