Lennar (NYSE:LEN) Major Shareholder Berkshire Hathaway Inc Buys 492,124 Shares of Stock

Key Points

• Berkshire Hathaway bought 492,124 Lennar shares for approximately $39.9 million at an average price of $81.12, following several other purchases during the week. Its stake increased 1.98% to 25.38 million shares.
• Lennar’s latest quarterly results fell short of expectations, with EPS of $1.23 versus the $1.29 consensus and revenue down 8.7% year over year to $8.05 billion. Analysts maintain a predominantly bearish view, with a consensus “Reduce” rating and an $81 price target.
• The company declared a quarterly dividend of $0.50 per share, equivalent to $2.00 annually and a yield of about 2.4%; shares recently traded at $82.12, near the consensus target.

Lennar Corporation (NYSE:LEN - Get Free Report) major shareholder Berkshire Hathaway Inc purchased 492,124 shares of the business's stock in a transaction dated Friday, September 25th. The shares were purchased at an average cost of $81.12 per share, for a total transaction of $39,921,098.88. Following the completion of the purchase, the insider directly owned 25,378,134 shares of the company's stock, valued at approximately $2,058,674,230.08. This represents a 1.98% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Major shareholders that own 10% or more of a company's shares are required to disclose their sales and purchases with the SEC.

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

• On Thursday, September 24th, Berkshire Hathaway Inc purchased 653,320 shares of Lennar stock. The stock was acquired at an average price of $80.88 per share, with a total value of $52,840,521.60.
• On Wednesday, September 23rd, Berkshire Hathaway Inc bought 534,256 shares of Lennar stock. The shares were bought at an average cost of $81.65 per share, with a total value of $43,622,002.40.
• On Monday, September 21st, Berkshire Hathaway Inc acquired 667,118 shares of Lennar stock. The stock was bought at an average cost of $77.74 per share, for a total transaction of $51,861,753.32.
• On Friday, September 18th, Berkshire Hathaway Inc acquired 1,381,397 shares of Lennar stock. The shares were purchased at an average price of $76.48 per share, with a total value of $105,649,242.56.
• On Thursday, September 17th, Berkshire Hathaway Inc bought 695,014 shares of Lennar stock. The shares were acquired at an average cost of $78.98 per share, with a total value of $54,892,205.72.

Lennar Trading Up 0.8%

LEN traded up $0.65 during trading on Friday, hitting $82.12. The company's stock had a trading volume of 3,890,709 shares, compared to its average volume of 4,436,968. The firm has a market capitalization of $19.78 billion, a P/E ratio of 15.52, a PEG ratio of 3.08 and a beta of 1.39. Lennar Corporation has a twelve month low of $75.70 and a twelve month high of $133.76. The stock's fifty day moving average price is $83.83 and its 200-day moving average price is $87.58. 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 (NYSE:LEN - Get Free Report) last posted its quarterly earnings results on Wednesday, September 16th. The construction company reported $1.23 EPS for the quarter, missing analysts' consensus estimates 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 return on equity of 6.15% and a net margin of 4.09%.The company's revenue for the quarter was down 8.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.29 earnings per share. Analysts anticipate that Lennar Corporation will post 4.85 EPS for the current year.

Lennar Dividend Announcement

The company also recently disclosed 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 annualized dividend and a dividend yield of 2.4%. Lennar's payout ratio is currently 37.81%.

Analyst Ratings Changes

Several research firms have weighed in on LEN. Evercore upped their price objective on shares of Lennar from $82.00 to $87.00 and gave the stock an "underperform" rating in a report on Monday, June 15th. The Goldman Sachs Group reaffirmed a "neutral" rating on shares of Lennar in a research report on Friday, June 5th. Seaport Research Partners decreased their price objective on Lennar from $74.00 to $70.00 and set a "sell" rating for the company in a report on Monday. Wells Fargo & Company lowered their price objective on Lennar from $85.00 to $80.00 and set an "equal weight" rating for the company in a research note on Friday, September 11th. Finally, Barclays cut their target price on Lennar from $79.00 to $70.00 and set an "underweight" rating on the stock in a research report on Friday, September 18th. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and nine have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Lennar currently has a consensus rating of "Reduce" and a consensus target price of $81.00.

More Lennar News

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway disclosed a purchase worth approximately $212.38 million, increasing its Lennar ownership above 10%. The investment by Warren Buffett’s company is a strong institutional vote of confidence and suggests Berkshire views Lennar’s depressed valuation and housing supply position as attractive. Lennar Shares Jumped After Berkshire Hathaway Increased Its Position
• Positive Sentiment: The company declared a quarterly dividend of $0.50 per share, or $2.00 annualized, representing an approximately 2.5% yield. The payout reinforces Lennar’s shareholder-return profile, although the ex-dividend date is October 7.
• Positive Sentiment: Lennar is expanding its geographic footprint by opening an Iowa division with five communities in the Des Moines area. New communities could support longer-term revenue and order growth if local demand remains healthy. Lennar’s New Iowa Division Opens Five Des Moines-Area Communities
• Neutral Sentiment: Lennar announced Venue at Leaf Creek, a 55-and-over community in Douglassville, Pennsylvania, highlighting continued development activity and product expansion. The announcement is strategically supportive but does not provide material financial guidance. Lennar’s Venue at Leaf Creek Announcement
• Negative Sentiment: Recent earnings missed expectations, revenue declined year over year, and Lennar cut its outlook. The weaker operating backdrop reflects pressure from mortgage rates, affordability challenges and softer housing demand.
• Negative Sentiment: Jim Cramer remained cautious on Lennar and the broader homebuilding sector, emphasizing the adverse impact of interest-rate uncertainty on housing activity. Keefe, Bruyette & Woods also issued a pessimistic forecast for the stock. Jim Cramer’s Lennar Commentary
• Negative Sentiment: Lennar’s lawsuit involving a rejected 265-unit condominium project in Geneva is moving forward, creating legal uncertainty and potentially delaying development plans.

Institutional Trading of Lennar

A number of large investors have recently added to or reduced their stakes in the stock. Anchor Investment Management LLC grew its position 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 acquiring an additional 702 shares during the period. Sequoia Financial Advisors LLC grew its stake in shares of Lennar by 5.3% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 14,609 shares of the construction company's stock worth $1,322,000 after acquiring an additional 735 shares during the period. Van Hulzen Asset Management LLC purchased a new stake in Lennar during the second quarter valued at about $317,000. Cidel Asset Management Inc. boosted its position in Lennar by 15.6% during the second quarter. Cidel Asset Management Inc. now owns 4,873 shares of the construction company's stock worth $441,000 after purchasing an additional 657 shares during the period. Finally, Pinnacle Wealth Management Advisory Group LLC bought a new stake in shares of Lennar in the second quarter valued at approximately $232,000. Hedge funds and other institutional investors own 81.10% of the company's stock.

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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