Berkshire Hathaway Inc Acquires 695,014 Shares of Lennar (NYSE:LEN) Stock

Key Points

• Berkshire Hathaway purchased 695,014 Lennar shares at an average price of $78.98, investing approximately $54.9 million and increasing its position by 3.3% to 21.7 million shares. It also bought additional shares in two other recent transactions.
• Lennar reported weaker-than-expected quarterly results, with earnings of $1.23 per share versus the $1.29 consensus estimate and revenue of $8.05 billion, down 8.7% year over year.
• Analyst sentiment remains negative: Lennar has a consensus “Reduce” rating, with 10 sell ratings, eight holds, and one buy; several firms recently cut their price targets to around $69–$70.

Lennar Corporation (NYSE:LEN - Get Free Report) major shareholder Berkshire Hathaway Inc purchased 695,014 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were acquired at an average cost of $78.98 per share, for a total transaction of $54,892,205.72. Following the completion of the transaction, the insider owned 21,728,350 shares of the company's stock, valued at $1,716,105,083. This trade represents a 3.30% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Major shareholders that own more than 10% of a company's shares are required to disclose their transactions with the SEC.

Berkshire Hathaway Inc also recently made the following trade(s):

• On Monday, September 21st, Berkshire Hathaway Inc acquired 667,118 shares of Lennar stock. The stock was acquired at an average cost of $77.74 per share, with a total value of $51,861,753.32.
• On Friday, September 18th, Berkshire Hathaway Inc bought 1,381,397 shares of Lennar stock. The shares were acquired at an average cost of $76.48 per share, for a total transaction of $105,649,242.56.

Lennar Price Performance

Shares of LEN stock traded up $1.57 during trading on Monday, hitting $78.00. The company had a trading volume of 4,945,274 shares, compared to its average volume of 3,793,928. The firm has a market capitalization of $18.79 billion, a P/E ratio of 14.74, a price-to-earnings-growth ratio of 2.56 and a beta of 1.39. Lennar Corporation has a one year low of $75.70 and a one year high of $133.76. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.69 and a current ratio of 4.94. The stock's 50-day moving average price is $84.05 and its 200 day moving average price is $88.09.

Lennar (NYSE:LEN - Get Free Report) last announced its quarterly earnings data on Wednesday, September 16th. The construction company reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.06). The company had revenue of $8.05 billion during 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%. Lennar's revenue was down 8.7% on a year-over-year basis. During the same period in the prior year, the firm earned $2.29 earnings per share. Equities analysts expect that Lennar Corporation will post 5.46 EPS for the current fiscal year.

Lennar Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Shareholders of record on Friday, July 10th were paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was Friday, July 10th. Lennar's dividend payout ratio is presently 37.81%.

Analyst Ratings Changes

A number of research analysts recently issued reports on LEN shares. Barclays decreased their price objective on shares of Lennar from $79.00 to $70.00 and set an "underweight" rating on the stock in a research note on Friday. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Lennar in a research note on Tuesday, September 8th. Zacks Research downgraded Lennar from a "hold" rating to a "strong sell" rating in a research note on Tuesday, June 16th. 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. Finally, Bank of America reduced their price objective on Lennar from $77.00 to $70.00 and set an "underperform" rating on the stock in a research report on Monday, September 14th. One equities research analyst has rated the stock with a Buy rating, eight have issued a Hold rating and ten have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Lennar currently has an average rating of "Reduce" and a consensus target price of $88.87.

Hedge Funds Weigh In On Lennar

Several institutional investors and hedge funds have recently added to or reduced their stakes in LEN. Phillip James Consulting Co. acquired a new position in shares of Lennar during the first quarter worth $30,000. Global Assets Advisory LLC acquired a new stake in Lennar in the first quarter valued at $39,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new position in Lennar during the 4th quarter worth $47,000. Anchor Investment Management LLC lifted its holdings in Lennar by 1,276.4% during the 2nd quarter. Anchor Investment Management LLC now owns 757 shares of the construction company's stock worth $69,000 after buying an additional 702 shares during the period. Finally, Elevation Wealth Partners LLC grew its position in shares of Lennar by 1,272.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 796 shares of the construction company's stock valued at $72,000 after buying an additional 738 shares during the last quarter. 81.10% of the stock is currently owned by institutional investors and hedge funds.

About Lennar

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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