Magnolia Group LLC Purchases Shares of 71,031 Lennar Corporation $LEN

Key Points

• Magnolia Group LLC disclosed a new fourth-quarter stake in Lennar, buying 71,031 shares worth about $6.76 million. Lennar now ranks as the fund’s 12th-largest holding and represents 1.1% of its portfolio.
• Lennar’s latest quarterly results missed expectations, with EPS of $0.88 versus the $0.95 consensus and revenue of $6.62 billion versus $6.90 billion expected. Revenue fell 13.3% from a year earlier.
• Analyst sentiment remains cautious, with several firms cutting price targets and the stock carrying an average rating of “Reduce” and an average price target of $99.87. Lennar also recently paid a $0.50 quarterly dividend, implying a 2.3% yield.

Magnolia Group LLC purchased a new stake in Lennar Corporation (NYSE:LEN - Free Report) during the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 71,031 shares of the construction company's stock, valued at approximately $6,756,000. Lennar makes up 1.1% of Magnolia Group LLC's holdings, making the stock its 12th largest holding.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Guerra Advisors Inc acquired a new position in Lennar in the third quarter valued at about $25,000. KERR FINANCIAL PLANNING Corp acquired a new position in Lennar in the third quarter valued at about $25,000. Redmont Wealth Advisors LLC acquired a new position in Lennar in the third quarter worth $26,000. High Point Wealth Management LLC acquired a new position in Lennar in the fourth quarter worth $31,000. Finally, Washington Trust Advisors Inc. boosted its stake in Lennar by 102.7% in the third quarter. Washington Trust Advisors Inc. now owns 371 shares of the construction company's stock worth $47,000 after purchasing an additional 188 shares in the last quarter. 81.10% of the stock is currently owned by institutional investors and hedge funds.

Lennar Trading Up 0.7%

Shares of LEN opened at $88.32 on Friday. The company has a quick ratio of 0.97, a current ratio of 4.77 and a debt-to-equity ratio of 0.18. Lennar Corporation has a 12-month low of $83.03 and a 12-month high of $144.24. The firm has a market capitalization of $21.81 billion, a PE ratio of 12.69, a price-to-earnings-growth ratio of 1.94 and a beta of 1.41. The stock's fifty day simple moving average is $94.02 and its 200-day simple moving average is $109.47.

Lennar (NYSE:LEN - Get Free Report) last issued its earnings results on Thursday, March 12th. The construction company reported $0.88 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.95 by ($0.07). The business had revenue of $6.62 billion during the quarter, compared to the consensus estimate of $6.90 billion. Lennar had a net margin of 5.39% and a return on equity of 7.80%. The firm's revenue for the quarter was down 13.3% compared to the same quarter last year. During the same period last year, the business posted $2.14 EPS. As a group, research analysts predict that Lennar Corporation will post 5.87 earnings per share for the current year.

Lennar Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 6th. Investors of record on Wednesday, April 22nd were issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 2.3%. The ex-dividend date was Wednesday, April 22nd. Lennar's dividend payout ratio is currently 28.74%.

Analyst Ratings Changes

A number of equities analysts have commented on LEN shares. Barclays reduced their price objective on Lennar from $85.00 to $80.00 and set an "underweight" rating on the stock in a research note on Wednesday, April 8th. Royal Bank Of Canada set a $88.00 price objective on Lennar in a research note on Friday, January 9th. Wells Fargo & Company reduced their target price on shares of Lennar from $100.00 to $90.00 and set an "equal weight" rating on the stock in a research report on Wednesday, April 8th. Seaport Research Partners reiterated a "sell" rating and set a $74.00 target price (down from $140.00) on shares of Lennar in a research report on Tuesday, April 7th. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Lennar from $105.00 to $97.00 and set a "market perform" rating on the stock in a research report on Wednesday, April 1st. One research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and eight have given a Sell rating to the company. Based on data from MarketBeat.com, Lennar presently has an average rating of "Reduce" and an average price target of $99.87.

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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