Lennar (NYSE:LEN) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research lowered shares of Lennar (NYSE:LEN) from a hold rating to a strong sell rating in a research report report published on Thursday,Zacks.com reports. Zacks Research also issued estimates for Lennar’s Q1 2026 earnings at $1.04 EPS, Q2 2026 earnings at $1.30 EPS, Q3 2026 earnings at $1.78 EPS, Q4 2026 earnings at $2.03 EPS, FY2026 earnings at $6.14 EPS, Q1 2027 earnings at $0.85 EPS, Q2 2027 earnings at $1.88 EPS, Q3 2027 earnings at $2.68 EPS, Q4 2027 earnings at $3.00 EPS, FY2027 earnings at $8.42 EPS and FY2028 earnings at $10.17 EPS.

A number of other analysts have also recently issued reports on LEN. Wedbush reissued a “neutral” rating and issued a $130.00 price objective on shares of Lennar in a research note on Monday, September 22nd. Citigroup dropped their target price on shares of Lennar from $133.00 to $113.00 and set a “neutral” rating for the company in a report on Thursday. Keefe, Bruyette & Woods decreased their price target on Lennar from $125.00 to $115.00 and set a “market perform” rating on the stock in a report on Thursday, December 18th. JPMorgan Chase & Co. lowered their price objective on Lennar from $115.00 to $80.00 and set an “underweight” rating on the stock in a research report on Thursday, December 18th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Lennar in a research report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, nine have issued a Hold rating and eight have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Reduce” and an average target price of $106.00.

Lennar Stock Performance

Shares of LEN opened at $118.92 on Thursday. The business has a 50-day simple moving average of $116.95 and a two-hundred day simple moving average of $121.24. The company has a quick ratio of 1.36, a current ratio of 4.89 and a debt-to-equity ratio of 0.18. Lennar has a 52 week low of $98.42 and a 52 week high of $144.24. The stock has a market cap of $30.33 billion, a price-to-earnings ratio of 14.88, a PEG ratio of 1.26 and a beta of 1.42.

Lennar (NYSE:LEN) last announced its quarterly earnings data on Tuesday, December 16th. The construction company reported $2.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.30 by ($0.27). The company had revenue of $9.37 billion for the quarter, compared to the consensus estimate of $9.17 billion. Lennar had a net margin of 6.08% and a return on equity of 9.27%. The company’s revenue was down 5.8% compared to the same quarter last year. During the same quarter last year, the firm posted $4.03 earnings per share. On average, analysts expect that Lennar will post 12.48 EPS for the current year.

Institutional Investors Weigh In On Lennar

Hedge funds have recently made changes to their positions in the company. Guerra Advisors Inc bought a new stake in Lennar in the 3rd quarter worth approximately $25,000. Redmont Wealth Advisors LLC purchased a new position in shares of Lennar in the third quarter valued at $26,000. KERR FINANCIAL PLANNING Corp bought a new stake in Lennar in the third quarter worth $25,000. FNY Investment Advisers LLC bought a new position in Lennar during the second quarter valued at $33,000. Finally, Rexford Capital Inc. purchased a new position in shares of Lennar in the 2nd quarter worth $36,000. 81.10% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Lennar

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Shares rose today on heavy volume, indicating buying interest that outweighed the negative analyst headlines (volume above average; technicals show price above the 50‑day SMA).
• Neutral Sentiment: Zacks published a FY2028 EPS projection of $10.17 for Lennar, signaling a longer‑range recovery expectation even as nearer‑term estimates were cut.
• Neutral Sentiment: Citizens / JMP reaffirmed a Market Perform (neutral) rating on LEN. Citizens Jmp Reaffirms Market Perform Rating for Lennar (NYSE:LEN)
• Neutral Sentiment: TPG’s acquisition of a majority interest in Quarterra was reported; this is industry‑level M&A news that may indirectly affect builder sentiment in certain markets but has no direct confirmed impact on Lennar. TPG Buys Majority Interest in Quarterra
• Negative Sentiment: Zacks cut Lennar’s near‑term and medium‑term EPS forecasts across multiple quarters and fiscal years (examples: FY2026 cut roughly to $6.14 from prior ~ $8.77; FY2027 cut to $8.42 from ~$10.11; several quarterly downgrades). Zacks kept a “Hold” rating — the cuts reduce near‑term earnings visibility and are a clear negative for consensus‑driven valuation.
• Negative Sentiment: Major sell‑side moves: Citigroup trimmed its price target to $113 and kept a neutral view (reported via Benzinga), and Wells Fargo lowered its target to $105 — both put downward pressure on sentiment. Citigroup price target cut reported at Benzinga Wells Fargo Lowers Lennar Price Target
• Negative Sentiment: Coverage notes after Lennar’s Q4 showing: some outlets and analysts moved LEN to market‑perform/neutral following an “underwhelming” quarter (Citizens/MSN coverage), reinforcing cautious sentiment. Lennar lowered to market perform at Citizens after underwhelming Q4

Lennar Company Profile

Lennar Corporation (NYSE: LEN) is a U.S.-based homebuilder and real estate company that designs, constructs and sells residential housing. The company offers a range of product types including single-family detached homes, townhomes and condominiums, serving buyers from entry-level and first-time purchasers to move-up, active-adult and luxury segments. Lennar also develops master-planned communities and manages land acquisition and entitlement activities that support its homebuilding operations.

In addition to home construction and sales, Lennar provides a suite of ancillary services intended to streamline the purchase process and capture additional value.