Lennar (NYSE:LEN) Stock: Insider Berkshire Hathaway Inc Purchases 710,542 Shares

Key Points

• Berkshire Hathaway bought 710,542 Lennar shares at an average price of $80.14, investing approximately $56.9 million and increasing its ownership by 2.73%. The purchase followed a series of additional Lennar buys by Berkshire.
• Lennar shares fell 6.9% to $74.31, near their 12-month low, after the company reported quarterly earnings of $1.23 per share versus the $1.29 analyst consensus and revenue declined 8.7% year over year.
• The company declared a quarterly dividend of $0.50 per share, while analysts remain cautious: Lennar has an average “Reduce” rating and a consensus price target of $79.86.

Lennar Corporation (NYSE:LEN - Get Free Report) major shareholder Berkshire Hathaway Inc purchased 710,542 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was bought at an average price of $80.14 per share, with a total value of $56,942,835.88. Following the completion of the transaction, the insider owned 26,740,126 shares of the company's stock, valued at $2,142,953,697.64. The trade was a 2.73% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Major shareholders that own at least 10% 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 Friday, October 2nd, Berkshire Hathaway Inc acquired 1,708,095 shares of Lennar stock. The shares were purchased at an average price of $79.44 per share, for a total transaction of $135,691,066.80.
• On Wednesday, September 30th, Berkshire Hathaway Inc bought 642,821 shares of Lennar stock. The stock was purchased at an average price of $81.58 per share, with a total value of $52,441,337.18.
• On Tuesday, September 29th, Berkshire Hathaway Inc purchased 12,389 shares of Lennar stock. The shares were purchased at an average cost of $81.93 per share, with a total value of $1,015,030.77.
• On Monday, September 28th, Berkshire Hathaway Inc purchased 5,200 shares of Lennar stock. The shares were purchased at an average price of $81.96 per share, for a total transaction of $426,192.00.
• On Friday, September 25th, Berkshire Hathaway Inc bought 492,124 shares of Lennar stock. The shares were acquired at an average price of $81.12 per share, with a total value of $39,921,098.88.
• On Thursday, September 24th, Berkshire Hathaway Inc bought 653,320 shares of Lennar stock. The stock was acquired at an average price of $80.88 per share, for a total transaction of $52,840,521.60.
• On Wednesday, September 23rd, Berkshire Hathaway Inc bought 534,256 shares of Lennar stock. The shares were acquired at an average price of $81.65 per share, with a total value of $43,622,002.40.
• On Monday, September 21st, Berkshire Hathaway Inc purchased 667,118 shares of Lennar stock. The stock was bought at an average price 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 bought 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 acquired 695,014 shares of Lennar stock. The stock was bought at an average cost of $78.98 per share, with a total value of $54,892,205.72.

Lennar Trading Down 6.9%

Shares of NYSE:LEN traded down $5.50 during trading on Monday, reaching $74.31. 10,653,331 shares of the company were exchanged, compared to its average volume of 5,612,962. Lennar Corporation has a 12-month low of $73.75 and a 12-month high of $133.76. The firm has a market capitalization of $17.90 billion, a PE ratio of 14.05, a P/E/G ratio of 3.00 and a beta of 1.36. The business's fifty day simple moving average is $83.52 and its 200-day simple moving average is $86.85. 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 issued its earnings results on Wednesday, September 16th. The construction company reported $1.23 earnings per share for the quarter, missing analysts' consensus estimates of $1.29 by ($0.06). Lennar had a net margin of 4.09% and a return on equity of 6.15%. The firm had revenue of $8.05 billion for the quarter, compared to the consensus estimate of $8.32 billion. During the same period last year, the firm earned $2.00 earnings per share. The company's revenue for the quarter was down 8.7% on a year-over-year basis. On average, research analysts anticipate that Lennar Corporation will post 4.87 EPS for the current year.

Lennar Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 22nd. Shareholders of record on Wednesday, October 7th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Wednesday, October 7th. Lennar's payout ratio is currently 37.81%.

Wall Street Analysts Forecast Growth

LEN has been the topic of a number of recent analyst reports. Keefe, Bruyette & Woods cut their price target on shares of Lennar from $85.00 to $75.00 and set an "underperform" rating on the stock in a research note on Tuesday, September 22nd. Benchmark raised shares of Lennar to a "hold" rating in a report on Thursday, September 3rd. Argus set a $108.00 target price on Lennar in a research report on Thursday, July 9th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Lennar in a research report on Tuesday, September 8th. Finally, Zacks Research lowered shares of Lennar from a "hold" rating to a "strong sell" rating in a research report on Tuesday, June 16th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and ten have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Reduce" and an average price target of $79.86.

Lennar News Summary

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway increased its Lennar position. Berkshire purchased 710,542 shares on October 1 and another 1,708,095 shares on October 2, investing roughly $193 million across the two disclosed transactions. Its holdings rose to 28.44 million shares, reinforcing Warren Buffett’s confidence in the homebuilder and providing potential support for the stock. Berkshire Buys More Lennar Stock
• Positive Sentiment: Long-term housing investment thesis remains intact. Reports highlighted that Berkshire is building a significant housing-related portfolio despite industry weakness, suggesting it views Lennar’s valuation and long-term housing demand favorably. Berkshire Hathaway Housing Investment
• Neutral Sentiment: Investor-law firms announced investigations. Block & Leviton is examining potential securities-law violations involving Lennar, while Julie & Holleman is investigating alleged misconduct related to transactions between Lennar and Millrose Properties. These announcements are not findings of wrongdoing but may add uncertainty and headline risk. Lennar Investor Investigation
• Negative Sentiment: Fundamental and housing-market pressures remain significant. High mortgage rates, weaker affordability, declining home prices and sharp gross-margin compression are weighing on Lennar’s outlook. The company’s latest quarterly results also missed analyst expectations, with earnings per share of $1.23 versus a $1.29 consensus and revenue down 8.7% year over year. Lennar Housing-Market Pressures
• Negative Sentiment: Recent negative coverage intensified selling pressure. Lennar’s shares fell sharply after publication of a report questioning the company, adding to concerns about earnings performance and the broader housing downturn. Negative Lennar Report

Hedge Funds Weigh In On Lennar

Hedge funds have recently made changes to their positions in the company. Ridgewood Investments LLC raised its position in shares of Lennar by 36.1% in the third quarter. Ridgewood Investments LLC now owns 14,543 shares of the construction company's stock valued at $1,187,000 after buying an additional 3,857 shares during the last quarter. Norman Fields Gottscho Capital Management LLC grew its position in Lennar by 126.9% in the third quarter. Norman Fields Gottscho Capital Management LLC now owns 8,183 shares of the construction company's stock worth $668,000 after acquiring an additional 4,576 shares during the period. Polaris Financial Partners purchased a new stake in Lennar in the 3rd quarter valued at about $27,000. Anchor Investment Management LLC lifted its holdings in shares of Lennar by 1,276.4% in the 2nd quarter. Anchor Investment Management LLC now owns 757 shares of the construction company's stock worth $69,000 after acquiring an additional 702 shares during the last quarter. Finally, Sequoia Financial Advisors LLC lifted its stake in Lennar by 5.3% during the second quarter. Sequoia Financial Advisors LLC now owns 14,609 shares of the construction company's stock worth $1,322,000 after purchasing an additional 735 shares in the last quarter. Institutional investors and hedge funds own 81.10% of the company's stock.

Lennar Company Profile

Lennar Corporation NYSE: LEN is a homebuilding company that designs, constructs and sells single-family homes and, through its multifamily operations, develops apartment communities. Its residential offerings generally include homes across a range of sizes and prices, serving first-time, move-up and active-adult buyers.

The company also provides related services through businesses involved in mortgage financing, title and closing services, insurance and other real estate activities. Lennar develops residential communities and manages land acquisition, planning and construction as part of its integrated homebuilding model.

Founded in 1954, Lennar has expanded from its origins in South Florida into a national homebuilder serving numerous markets across the United States.

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