Lennar Corporation (NYSE:LEN) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Analysts are broadly bearish on Lennar: Eighteen analysts give the stock an average “Reduce” rating, including 10 sells, seven holds and one buy. The average 12-month price target is $92.13, while several firms recently lowered their targets and issued underperform, neutral or underweight ratings.
• Lennar’s latest quarterly earnings of $1.31 per share beat estimates of $1.24, but revenue fell 5.2% year over year to $7.94 billion and missed expectations. Shares recently traded at $88.11, near the lower end of their 52-week range of $79.82 to $144.24.
• The company paid a quarterly dividend of $0.50 per share, equivalent to an annualized $2.00 payout and a 2.3% yield. Institutional investors own 81.1% of Lennar’s outstanding stock.

Lennar Corporation (NYSE:LEN - Get Free Report) has been given an average rating of "Reduce" by the eighteen analysts that are currently covering the company, MarketBeat.com reports. Ten investment analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation and one has given a buy recommendation to the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $92.1333.

A number of equities analysts have recently commented on the stock. Royal Bank Of Canada cut their price target on shares of Lennar from $88.00 to $85.00 and set an "underperform" rating on the stock in a report on Monday, June 15th. Zacks Research lowered Lennar from a "hold" rating to a "strong sell" rating in a research report on Tuesday, June 16th. Citigroup cut their target price on Lennar from $104.00 to $88.00 and set a "neutral" rating on the stock in a report on Wednesday, July 15th. Weiss Ratings reissued a "sell (d+)" rating on shares of Lennar in a research note on Thursday, June 11th. Finally, Barclays lowered their price objective on Lennar from $80.00 to $79.00 and set an "underweight" rating for the company in a research report on Monday, June 15th.

Hedge Funds Weigh In On Lennar

Several large investors have recently added to or reduced their stakes in the business. Magnolia Group LLC purchased a new position in shares of Lennar in the 4th quarter worth about $6,756,000. KBC Group NV lifted its position in Lennar by 34.3% in the 4th quarter. KBC Group NV now owns 62,689 shares of the construction company's stock worth $6,445,000 after buying an additional 15,998 shares during the last quarter. MUFG Securities EMEA plc grew its position in Lennar by 2,522.7% during the fourth quarter. MUFG Securities EMEA plc now owns 114,245 shares of the construction company's stock valued at $11,744,000 after acquiring an additional 109,889 shares during the last quarter. Third View Private Wealth LLC purchased a new position in shares of Lennar during the fourth quarter worth approximately $1,269,000. Finally, Element Capital Management LLC bought a new stake in shares of Lennar in the 4th quarter worth approximately $6,437,000. Institutional investors own 81.10% of the company's stock.

Lennar Price Performance

Shares of NYSE LEN opened at $88.11 on Monday. The firm has a market cap of $21.23 billion, a P/E ratio of 13.79, a price-to-earnings-growth ratio of 2.93 and a beta of 1.39. The business's 50 day moving average is $87.52 and its 200-day moving average is $94.91. The company has a current ratio of 4.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.19. Lennar has a 1-year low of $79.82 and a 1-year high of $144.24.

Lennar (NYSE:LEN - Get Free Report) last issued its quarterly earnings results on Thursday, June 11th. The construction company reported $1.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.24 by $0.07. Lennar had a return on equity of 7.08% and a net margin of 4.93%.The business had revenue of $7.94 billion for the quarter, compared to the consensus estimate of $8.08 billion. During the same quarter in the prior year, the business posted $1.81 earnings per share. The firm's quarterly revenue was down 5.2% compared to the same quarter last year. Equities research analysts predict that Lennar will post 5.52 earnings per share for the current year.

Lennar Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 24th. Stockholders of record on Friday, July 10th were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend was Friday, July 10th. Lennar's dividend payout ratio is presently 31.30%.

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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