Lennar Corporation (NYSE:LEN) Stock Has Consensus Price Target of $81.00

Shares of Lennar Corporation (NYSE:LEN) have earned an average recommendation of “Reduce” from the eighteen brokerages that are covering the company, MarketBeat.com reports. Ten 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 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $79.86.

A number of analysts recently weighed in on LEN shares. Royal Bank Of Canada decreased their target price on shares of Lennar from $85.00 to $69.00 and set an “underperform” rating on the stock in a report on Friday, September 18th. Truist Financial decreased their target price on Lennar from $80.00 to $75.00 and set a “hold” rating on the stock in a research note on Wednesday, September 16th. Citigroup lowered their price target on Lennar from $88.00 to $85.00 and set a “neutral” rating on the stock in a report on Monday, September 21st. BTIG Research restated a “sell” rating and issued a $63.00 price objective on shares of Lennar in a research report on Friday, September 18th. Finally, Bank of America lowered their price objective on shares of Lennar from $77.00 to $70.00 and set an “underperform” rating on the stock in a research report on Monday, September 14th.

Lennar Trading Down 2.8%

Shares of LEN stock opened at $79.84 on Tuesday. The stock has a market capitalization of $19.23 billion, a price-to-earnings ratio of 15.09, a PEG ratio of 3.01 and a beta of 1.36. The company’s fifty day simple moving average is $83.73 and its two-hundred day simple moving average is $87.07. Lennar has a 1 year low of $75.70 and a 1 year high of $133.76. The company has a debt-to-equity ratio of 0.20, a current ratio of 4.94 and a quick ratio of 0.69.

Lennar (NYSE:LEN) last announced its quarterly earnings results on Wednesday, September 16th. The construction company reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.06). Lennar had a net margin of 4.09% and a return on equity of 6.15%. The company had revenue of $8.05 billion during the quarter, compared to analysts’ expectations of $8.32 billion. During the same quarter last year, the firm posted $2.00 earnings per share. Lennar’s revenue for the quarter was down 8.7% compared to the same quarter last year. As a group, analysts anticipate that Lennar will post 4.87 earnings per share for the current year.

Lennar Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 22nd. Investors of record on Wednesday, October 7th will be issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Wednesday, October 7th. Lennar’s dividend payout ratio (DPR) is currently 37.81%.

Insiders Place Their Bets

In other news, major shareholder Berkshire Hathaway Inc bought 642,821 shares of the business’s stock in a transaction on Wednesday, September 30th. The stock was acquired at an average price of $81.58 per share, with a total value of $52,441,337.18. Following the completion of the purchase, the insider directly owned 26,034,436 shares in the company, valued at $2,123,889,288.88. This represents a 2.53% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. In the last ninety days, insiders purchased 5,083,639 shares of company stock valued at $402,669,384. Insiders own 10.05% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Polaris Financial Partners purchased a new stake in shares of Lennar during the third quarter valued at approximately $27,000. Phillip James Consulting Co. bought a new position in shares of Lennar during the first quarter valued at about $30,000. Global Assets Advisory LLC purchased a new stake in shares of Lennar during the first quarter worth about $39,000. Anchor Investment Management LLC grew its stake in shares of 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 increased its holdings in Lennar by 1,272.4% during 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. 81.10% of the stock is owned by institutional investors.

Key Lennar News

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway continued accumulating shares: Berkshire purchased approximately 660,000 Lennar shares in transactions dated September 28–30, including a roughly $52.4 million purchase. Its stake now exceeds 26 million shares, signaling confidence in Lennar’s long-term valuation despite the housing slowdown. SEC ownership filing
• Neutral Sentiment: Options activity increased: Traders purchased 10,175 put options, about 31% above Lennar’s average daily put volume. The activity suggests heightened demand for downside protection or bearish speculation, but does not by itself confirm the direction of the stock.
• Negative Sentiment: Short report raises transaction concerns: Hunterbrook alleged Lennar met quarterly targets partly by selling homes to Millrose Properties, its spinoff. Investors may view the allegations as a risk to the quality of reported sales and earnings, increasing scrutiny of Lennar’s accounting and operating relationships. Hunterbrook short report article
• Negative Sentiment: Analyst disagreement turned more bearish: Morgan Stanley issued a sell rating, arguing that housing-market recovery timing and downside risks may not justify Lennar’s valuation. The call contrasts with Berkshire’s purchases and adds pressure to investor sentiment. Morgan Stanley sell-rating article
• Negative Sentiment: Weak recent results remain a backdrop: Lennar’s latest quarterly EPS of $1.23 missed the $1.29 consensus estimate, while revenue of $8.05 billion fell short of expectations and declined 8.7% year over year. The earnings deterioration reinforces concerns about housing demand, margins and profitability.

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.