Lennar Corporation (NYSE:LEN) Stock Has Consensus Target Price of $79.00 According to Analysts

Key Points

• Analysts remain bearish on Lennar: Nineteen firms give the stock a consensus “Strong Sell” rating, with 11 sells, seven holds and one buy. The average 12-month price target is $79, below the reported share price of $85.06.
• Recent operating results weakened: Lennar missed quarterly earnings and revenue estimates, reporting $1.23 in EPS and $8.05 billion in revenue. EPS fell from $2.00 a year earlier, while revenue declined 8.7% year over year.
• Insiders and institutions increased exposure: Berkshire Hathaway bought more than 1.7 million Lennar shares for approximately $135.7 million, while insiders purchased 7.5 million shares during the quarter. Institutional investors own 81.1% of the company, and Lennar pays a quarterly dividend of $0.50.

Shares of Lennar Corporation (NYSE:LEN - Get Free Report) have earned an average rating of "Strong Sell" from the nineteen ratings firms that are currently covering the firm, MarketBeat.com reports. Eleven 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 target among brokers that have issued ratings on the stock in the last year is $79.00.

A number of equities analysts have recently commented on LEN shares. Barclays cut their price target on shares of Lennar from $79.00 to $70.00 and set an "underweight" rating on the stock in a report on Friday, September 18th. Benchmark upgraded Lennar to a "hold" rating in a report on Thursday, September 3rd. Weiss Ratings lowered Lennar from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday. Bank of America cut their target price on Lennar from $77.00 to $70.00 and set an "underperform" rating on the stock in a report on Monday, September 14th. Finally, Citizens Jmp reiterated a "hold" rating on shares of Lennar in a research report on Thursday, September 17th.

Insider Activity at Lennar

In related news, major shareholder Berkshire Hathaway Inc bought 1,708,095 shares of Lennar stock in a transaction that occurred on Friday, October 2nd. The shares were acquired at an average cost of $79.44 per share, for a total transaction of $135,691,066.80. Following the completion of the acquisition, the insider directly owned 28,438,045 shares of the company's stock, valued at approximately $2,259,118,294.80. The trade was a 6.39% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders purchased 7,502,276 shares of company stock valued at $595,303,287 over the last quarter. 10.05% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Janus Henderson Group PLC increased its stake in Lennar by 19.7% in the first quarter. Janus Henderson Group PLC now owns 2,546,970 shares of the construction company's stock valued at $221,176,000 after purchasing an additional 419,745 shares in the last quarter. Nan Shan Life Insurance Co. Ltd. raised its holdings in shares of Lennar by 6,292.5% during the second quarter. Nan Shan Life Insurance Co. Ltd. now owns 328,000 shares of the construction company's stock valued at $29,681,000 after purchasing an additional 322,869 shares during the period. Empowered Funds LLC boosted its position in shares of Lennar by 322.4% during the 1st quarter. Empowered Funds LLC now owns 309,880 shares of the construction company's stock worth $26,910,000 after purchasing an additional 236,524 shares in the last quarter. Entropy Technologies LP bought a new position in shares of Lennar during the 1st quarter worth about $6,855,000. Finally, Public Employees Retirement System of Ohio acquired a new stake in shares of Lennar in the 2nd quarter valued at about $6,077,000. Institutional investors own 81.10% of the company's stock.

Lennar Stock Performance

Lennar stock opened at $85.06 on Friday. The business has a 50 day moving average of $81.17 and a 200-day moving average of $85.67. The company has a market capitalization of $20.24 billion, a P/E ratio of 16.08, a P/E/G ratio of 3.17 and a beta of 1.36. Lennar has a 1 year low of $71.78 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 - Get Free Report) last posted 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). Lennar had a return on equity of 6.15% and a net margin of 4.09%. The business had revenue of $8.05 billion for the quarter, compared to analyst estimates of $8.32 billion. During the same quarter in the prior year, the business earned $2.00 earnings per share. The firm's quarterly revenue was down 8.7% on a year-over-year basis. On average, equities research analysts predict that Lennar will post 4.88 earnings per share for the current year.

Lennar Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 22nd. Investors of record on Wednesday, October 7th were paid 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 of this dividend was Wednesday, October 7th. Lennar's payout ratio is currently 37.81%.

Trending Headlines about Lennar

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Lower rates lift the homebuilder sector: The average 30-year mortgage rate declined to 7.32%, while Treasury yields also eased. The improved financing outlook encouraged investors to rotate back into beaten-down homebuilders, including Lennar. Lennar gains as lower rates appear to lift beaten-down homebuilders
• Positive Sentiment: Institutional buying and valuation appeal: Berkshire Hathaway and other large institutions reportedly increased their Lennar holdings in the latest quarter. A GuruFocus analysis also estimated fair value at $124.32 versus a recent share price of $84.45, potentially reinforcing the view that LEN is undervalued. A Look at Lennar Corp After 8.7% Gain
• Positive Sentiment: Continued community expansion: Lennar broke ground on a 220-home community at Fort Monmouth in Eatontown, New Jersey, and was identified as the buyer of the former Boynton Beach Mall site in Florida. These projects expand its future housing pipeline, although their earnings impact will develop over time. Lennar breaks ground on 220-home community at Fort Monmouth Lennar revealed as buyer of Boynton Beach Mall
• Neutral Sentiment: Broader real-estate rally: Lennar rose alongside Zillow and CoStar as analysts raised targets for parts of the real-estate sector, suggesting some of the move reflected industry-wide momentum rather than a Lennar-specific catalyst. CoStar Soars as Zillow and Lennar Rally
• Negative Sentiment: Fundamental concerns remain: Lennar’s latest reported quarter missed earnings and revenue expectations, with earnings per share falling year over year and revenue declining 8.7%. Earlier weakness also reflected a reduced delivery outlook, leaving the stock sensitive to mortgage rates, affordability and execution risks. Lennar Stock Sinks as Market Gains

Lennar Company Profile

Lennar Corporation NYSE: LEN is a homebuilding and real estate company that develops, constructs, and sells primarily single-family homes. The company offers homes across a range of price points and designs, including residences for first-time, move-up, luxury, and active-adult buyers. Its operations also include land acquisition and development, allowing Lennar to prepare communities and lots for residential construction.

In addition to homebuilding, Lennar develops multifamily rental properties and provides related financial services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.