Lennar Corporation $LEN Stake Raised by Vision Capital Management Inc.

Key Points

• Vision Capital Management increased its Lennar stake by 240.4% in the third quarter, ending with 19,581 shares valued at approximately $1.6 million. Institutional investors and hedge funds own 81.1% of Lennar’s outstanding stock.
• Lennar reported quarterly EPS of $1.23, below the $1.29 consensus estimate, while revenue fell 8.7% year over year to $8.05 billion. The company declared a quarterly dividend of $0.50 per share, representing a 2.6% annualized yield.
• Analyst sentiment remains cautious: 10 analysts rate Lennar a Sell, eight rate it Hold, and one rates it Buy, producing a consensus “Reduce” rating and a $79 price target. Berkshire Hathaway separately purchased more than 1.7 million shares worth about $135.7 million.

Vision Capital Management Inc. increased its holdings in Lennar Corporation (NYSE:LEN - Free Report) by 240.4% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 19,581 shares of the construction company's stock after purchasing an additional 13,828 shares during the period. Vision Capital Management Inc.'s holdings in Lennar were worth $1,598,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in the business. Polaris Financial Partners acquired a new stake in Lennar in the 3rd quarter worth about $27,000. Phillip James Consulting Co. purchased a new position in Lennar during the first quarter worth approximately $30,000. Global Assets Advisory LLC acquired a new position in shares of Lennar in the 1st quarter valued at $39,000. GK Wealth Management LLC acquired a new position in shares of Lennar in the 3rd quarter valued at $42,000. Finally, Anchor Investment Management LLC grew its stake in shares of Lennar by 1,276.4% during the 2nd quarter. Anchor Investment Management LLC now owns 757 shares of the construction company's stock valued at $69,000 after buying an additional 702 shares during the period. 81.10% of the stock is currently owned by institutional investors and hedge funds.

Lennar Price Performance

LEN opened at $75.86 on Tuesday. The company has a quick ratio of 0.69, a current ratio of 4.94 and a debt-to-equity ratio of 0.20. Lennar Corporation has a 52-week low of $71.78 and a 52-week high of $133.76. The company has a 50 day moving average of $81.59 and a two-hundred day moving average of $85.80. The company has a market cap of $18.05 billion, a P/E ratio of 14.14, a P/E/G ratio of 2.90 and a beta of 1.36.

Lennar (NYSE:LEN - Get Free Report) last released its quarterly earnings data on Wednesday, September 16th. The construction company reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). The business had revenue of $8.05 billion during the quarter, compared to analyst estimates of $8.32 billion. Lennar had a return on equity of 6.15% and a net margin of 4.09%. Lennar's revenue was down 8.7% on a year-over-year basis. During the same period in the previous year, the company earned $2.00 EPS. On average, analysts expect that Lennar Corporation will post 4.87 earnings per share for the current year.

Lennar Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 22nd. Investors of record on Wednesday, October 7th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 2.6%. The ex-dividend date is Wednesday, October 7th. Lennar's dividend payout ratio is currently 37.81%.

Insider Buying and Selling

In related news, major shareholder Berkshire Hathaway Inc acquired 1,708,095 shares of the business's stock in a transaction on Friday, October 2nd. The shares were bought at an average cost of $79.44 per share, with a total value of $135,691,066.80. Following the completion of the transaction, the insider directly owned 28,438,045 shares of the company's stock, valued at $2,259,118,294.80. This trade represents a 6.39% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders bought 7,502,276 shares of company stock valued at $595,303,287 over the last 90 days. Company insiders own 10.05% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have recently commented on LEN shares. Melius Research assumed coverage on Lennar in a report on Tuesday, October 6th. They set a "sell" rating and a $72.00 price objective for the company. Wells Fargo & Company reduced their target price on Lennar from $80.00 to $75.00 and set an "equal weight" rating on the stock in a report on Wednesday, October 7th. Morgan Stanley initiated coverage on Lennar in a research report on Thursday, October 1st. They set an "underweight" rating and a $65.00 price target for the company. Seaport Research Partners dropped their price target on Lennar from $74.00 to $70.00 and set a "sell" rating for the company in a research note on Monday, September 21st. Finally, Royal Bank Of Canada cut their price objective on Lennar from $85.00 to $69.00 and set an "underperform" rating on the stock in a report on Friday, September 18th. One equities research analyst has rated the stock with a Buy rating, eight have given a Hold rating and ten have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $79.00.

About Lennar

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.

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