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

Key Points

• Analysts remain cautious on Lennar: Seventeen firms assign the stock a consensus “Reduce” rating, including nine sells, seven holds and one buy. The average 12-month price target is $81, below the reported $82.07 opening price.
• Recent results missed expectations: Lennar reported quarterly EPS of $1.23 versus the $1.29 consensus and revenue of $8.05 billion versus $8.32 billion expected. Revenue declined 8.7% year over year, reflecting pressure from a weaker housing market and discounting.
• Positive shareholder signals remain: Berkshire Hathaway increased its Lennar position, while the company declared a $0.50 quarterly dividend, equivalent to a 2.4% annualized yield. However, institutional ownership and insider buying contrast with broadly negative analyst sentiment.

Lennar Corporation (NYSE:LEN - Get Free Report) has been given a consensus rating of "Reduce" by the seventeen ratings firms that are covering the firm, MarketBeat Ratings reports. Nine 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 twelve-month price target among analysts that have issued a report on the stock in the last year is $81.00.

LEN has been the subject of a number of recent research reports. Citigroup cut their price objective on Lennar from $88.00 to $85.00 and set a "neutral" rating for the company in a research report on Monday, September 21st. Argus set a $108.00 target price on Lennar in a report on Thursday, July 9th. UBS Group cut their target price on Lennar from $107.00 to $94.00 and set a "neutral" rating on the stock in a research report on Tuesday, June 16th. BTIG Research reiterated a "sell" rating and issued a $63.00 price target on shares of Lennar in a research report on Friday, September 18th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Lennar in a report on Tuesday, September 8th.

Lennar Stock Performance

Shares of LEN opened at $82.07 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 firm's 50 day moving average is $83.81 and its 200-day moving average is $87.38. Lennar has a 12-month low of $75.70 and a 12-month high of $133.76. The stock has a market capitalization of $19.77 billion, a P/E ratio of 15.51, a P/E/G ratio of 3.10 and a beta of 1.39.

Lennar (NYSE:LEN - Get Free Report) last released its earnings results on Wednesday, September 16th. The construction company reported $1.23 EPS for the quarter, missing the consensus estimate of $1.29 by ($0.06). The business had revenue of $8.05 billion for the quarter, compared to analyst estimates of $8.32 billion. Lennar had a net margin of 4.09% and a return on equity of 6.15%. The firm's revenue for the quarter was down 8.7% on a year-over-year basis. During the same period in the prior year, the company earned $2.29 earnings per share. Equities research analysts anticipate that Lennar will post 4.85 EPS for the current fiscal year.

Lennar Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 22nd. Stockholders of record on Wednesday, October 7th will be issued a dividend of $0.50 per share. The ex-dividend date is Wednesday, October 7th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.4%. Lennar's payout ratio is currently 37.81%.

Insider Buying and Selling

In other Lennar news, major shareholder Berkshire Hathaway Inc bought 1,381,397 shares of the firm's stock in a transaction dated Friday, September 18th. The stock was acquired at an average price of $76.48 per share, with a total value of $105,649,242.56. Following the completion of the transaction, the insider directly owned 23,075,025 shares in the company, valued at approximately $1,764,777,912. This represents a 6.37% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last three months, insiders have purchased 4,423,229 shares of company stock valued at $348,786,824. Company insiders own 10.05% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Van Lanschot Kempen Investment Management N.V. lifted its holdings in shares of Lennar by 90.9% during the fourth quarter. Van Lanschot Kempen Investment Management N.V. now owns 1,963,373 shares of the construction company's stock worth $201,835,000 after buying an additional 934,856 shares during the last quarter. Janus Henderson Group PLC grew its stake in shares of Lennar by 19.7% in the first quarter. Janus Henderson Group PLC now owns 2,546,970 shares of the construction company's stock worth $221,176,000 after acquiring an additional 419,745 shares during the last quarter. Nan Shan Life Insurance Co. Ltd. increased its holdings in shares of Lennar by 6,292.5% during the 2nd quarter. Nan Shan Life Insurance Co. Ltd. now owns 328,000 shares of the construction company's stock worth $29,681,000 after purchasing an additional 322,869 shares during the period. Empowered Funds LLC increased its stake in Lennar by 322.4% during the first quarter. Empowered Funds LLC now owns 309,880 shares of the construction company's stock valued at $26,910,000 after acquiring an additional 236,524 shares during the period. Finally, MUFG Securities EMEA plc increased its position in shares of Lennar by 2,522.7% during the fourth quarter. MUFG Securities EMEA plc now owns 114,245 shares of the construction company's stock valued at $11,744,000 after purchasing an additional 109,889 shares during the period. 81.10% of the stock is owned by hedge funds and other institutional investors.

Lennar News Summary

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway nearly doubled its Lennar position. Recent purchases reportedly brought Berkshire’s combined holdings to approximately 25.9 million shares, or about an 11% stake. The buying—more than $348 million in disclosed purchases—could support investor confidence by signaling that Berkshire sees long-term value in the housing market despite current weakness. Berkshire Buys Additional $136M of Lennar Stock, Raising Stake to 11%
• Positive Sentiment: Lennar is targeting multigenerational housing demand. Its “home within a home” designs, which provide more private space for relatives or extended family, could help differentiate the builder and tap an expanding housing need. Lennar’s “home within a home” targets multigenerational demand
• Neutral Sentiment: New communities expand Lennar’s market footprint. The company opened three communities in Pennsylvania, Alabama and California, adding future sales capacity, although the near-term financial impact is unclear. Lennar Opens Three New Communities
• Negative Sentiment: Fiscal third-quarter results missed expectations. Lennar delivered 20,840 homes, within its guidance but below Wall Street forecasts. StoneX cited shortfalls in deliveries, average selling price, revenue and earnings, maintaining a Hold rating. Lennar Q3 Results Show the Cost of Protecting Home Sales
• Negative Sentiment: Discounting is protecting sales at the expense of profits. Coverage highlights continued home-price reductions, while the latest quarter showed earnings and revenue declining year over year. This reinforces concerns that elevated mortgage costs and a weak housing market are pressuring Lennar’s margins.

Lennar Company Profile

Lennar Corporation is one of the largest homebuilders in the United States. Founded in 1954 and headquartered in Miami, Florida, the company designs, constructs, and sells single-family homes and communities for a range of buyers, including first-time, move-up, and active-adult purchasers.

Lennar operates across many of the country's major housing markets, including communities in the West, Southwest, Southeast, Mid-Atlantic, and other metropolitan areas. Its homebuilding operations offer a variety of floor plans and home designs, while the company also develops residential communities and provides related services such as mortgage financing, title, and closing services through its financial-services businesses.

In addition to traditional homebuilding, Lennar has expanded into multifamily development and other residential real-estate activities.

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