Lennar Corporation (NYSE:LEN) Receives Consensus Rating of "Reduce" from Analysts

Key Points

• Lennar received a consensus “Reduce” rating from 18 analysts: 10 sell ratings, seven holds and one buy. The average 12-month price target is $92.13.
• Recent analyst actions were largely cautious, including JPMorgan lowering its target to $77 and assigning an “underweight” rating, while Zacks Research downgraded the stock to “strong sell.”
• Lennar’s latest quarterly results modestly beat earnings expectations at $1.31 per share, but revenue fell 5.2% year over year to $7.94 billion. The company also maintains a quarterly dividend of $0.50, equivalent to a 2.4% annual yield.

Lennar Corporation (NYSE:LEN - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the eighteen ratings firms that are presently covering the stock, MarketBeat Ratings reports. Ten equities research analysts have rated the stock with a sell recommendation, seven have given a hold recommendation and one has given a buy recommendation to the company. The average 1 year price target among brokers that have covered the stock in the last year is $92.1333.

Several research firms recently weighed in on LEN. BTIG Research set a $67.00 price objective on Lennar in a report on Monday, June 15th. Zacks Research cut Lennar from a "hold" rating to a "strong sell" rating in a report on Tuesday, June 16th. The Goldman Sachs Group reissued a "neutral" rating on shares of Lennar in a research note on Friday, June 5th. JPMorgan Chase & Co. lowered their price objective on Lennar from $80.00 to $77.00 and set an "underweight" rating for the company in a research note on Tuesday, June 16th. Finally, Argus set a $108.00 price objective on shares of Lennar in a report on Thursday, July 9th.

Hedge Funds Weigh In On Lennar

A number of hedge funds and other institutional investors have recently made changes to their positions in LEN. Lazard Asset Management LLC raised its holdings in Lennar by 7.1% during the 2nd quarter. Lazard Asset Management LLC now owns 1,278 shares of the construction company's stock worth $141,000 after purchasing an additional 85 shares during the last quarter. Rossby Financial LCC increased its position in shares of Lennar by 9.1% during the fourth quarter. Rossby Financial LCC now owns 1,059 shares of the construction company's stock worth $109,000 after buying an additional 88 shares during the period. New Mexico Educational Retirement Board raised its stake in Lennar by 1.0% during the fourth quarter. New Mexico Educational Retirement Board now owns 10,560 shares of the construction company's stock worth $1,086,000 after buying an additional 100 shares during the last quarter. KDT Advisors LLC lifted its holdings in Lennar by 2.7% in the third quarter. KDT Advisors LLC now owns 4,654 shares of the construction company's stock valued at $587,000 after buying an additional 123 shares during the period. Finally, KCM Investment Advisors LLC lifted its holdings in Lennar by 1.3% in the first quarter. KCM Investment Advisors LLC now owns 9,879 shares of the construction company's stock valued at $858,000 after buying an additional 125 shares during the period. 81.10% of the stock is owned by institutional investors and hedge funds.

Lennar Trading Up 0.9%

Shares of Lennar stock opened at $84.37 on Friday. The firm's 50 day moving average is $85.83 and its 200 day moving average is $91.10. The firm has a market capitalization of $20.32 billion, a PE ratio of 13.20, a price-to-earnings-growth ratio of 2.78 and a beta of 1.39. Lennar has a 1 year low of $79.82 and a 1 year high of $144.24. The company has a current ratio of 4.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.19.

Lennar (NYSE:LEN - Get Free Report) last issued its quarterly earnings data on Thursday, June 11th. The construction company reported $1.31 EPS for the quarter, beating the consensus estimate of $1.24 by $0.07. The business had revenue of $7.94 billion during the quarter, compared to the consensus estimate of $8.08 billion. Lennar had a net margin of 4.93% and a return on equity of 7.08%. The firm's revenue was down 5.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.81 EPS. Equities research analysts forecast that Lennar will post 5.52 earnings per share for the current fiscal year.

Lennar Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Friday, July 10th. Lennar's payout ratio is 31.30%.

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.

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