Lennar (NYSE:LEN) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Lennar has been downgraded to a "strong sell" rating by Zacks Research, marking a significant shift in analyst sentiment for the company.
• The company's recent quarterly earnings report showed a decline in revenue by 6.4% compared to the previous year, raising concerns about its financial performance.
• Despite the downgrade, several analysts have varied opinions on Lennar, with one rating it as a Strong Buy and others giving mixed ratings from "Buy" to "Hold."

Lennar (NYSE:LEN - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Tuesday,Zacks.com reports.

A number of other equities analysts have also weighed in on LEN. Zelman & Associates lowered shares of Lennar from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, June 18th. Raymond James Financial downgraded Lennar from a "market perform" rating to an "underperform" rating in a research report on Monday, September 22nd. The Goldman Sachs Group raised their price target on Lennar from $122.00 to $126.00 and gave the company a "neutral" rating in a report on Tuesday, September 23rd. JMP Securities raised their target price on shares of Lennar from $130.00 to $140.00 and gave the stock a "market outperform" rating in a report on Monday, September 22nd. Finally, Royal Bank Of Canada upped their price target on shares of Lennar from $98.00 to $106.00 and gave the stock a "sector perform" rating in a report on Monday, September 22nd. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $123.42.

Lennar Stock Down 1.7%

NYSE LEN opened at $120.11 on Tuesday. The stock's 50 day simple moving average is $129.19 and its 200 day simple moving average is $116.47. The company has a debt-to-equity ratio of 0.15, a current ratio of 4.49 and a quick ratio of 0.68. Lennar has a one year low of $98.42 and a one year high of $189.65. The firm has a market cap of $31.11 billion, a PE ratio of 11.87, a price-to-earnings-growth ratio of 5.47 and a beta of 1.37.

Lennar (NYSE:LEN - Get Free Report) last announced its quarterly earnings data on Thursday, September 18th. The construction company reported $2.29 earnings per share for the quarter, topping the consensus estimate of $2.14 by $0.15. The firm had revenue of $8.81 billion during the quarter, compared to analysts' expectations of $9.01 billion. Lennar had a return on equity of 11.09% and a net margin of 7.72%.The company's quarterly revenue was down 6.4% compared to the same quarter last year. During the same period in the previous year, the business posted $3.90 EPS. As a group, sell-side analysts forecast that Lennar will post 12.48 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Lennar

Several large investors have recently added to or reduced their stakes in the business. Opal Wealth Advisors LLC purchased a new position in shares of Lennar during the 1st quarter valued at about $30,000. NBC Securities Inc. purchased a new position in Lennar during the first quarter valued at $33,000. FNY Investment Advisers LLC purchased a new stake in Lennar during the 2nd quarter valued at $33,000. Rexford Capital Inc. purchased a new position in shares of Lennar during the second quarter valued at approximately $36,000. Finally, Disciplina Capital Management LLC grew its holdings in shares of Lennar by 179.8% in the first quarter. Disciplina Capital Management LLC now owns 333 shares of the construction company's stock worth $38,000 after acquiring an additional 214 shares during the period. Institutional investors own 81.10% of the company's stock.

About Lennar

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.