Lennar (NYSE:LEN) Reaches New 52-Week Low - Here's What Happened

Key Points

• Lennar shares hit a new 52-week low on Thursday, falling to as low as $80.30 after previously closing at $82.15.
• Recent analyst sentiment has been mostly negative, with multiple firms cutting price targets and the stock carrying a consensus rating of "Reduce" and an average price target of $92.80.
• The company’s latest quarterly results showed EPS beat expectations at $1.31, but revenue of $7.94 billion missed forecasts and fell 5.2% year over year.

Lennar Corporation (NYSE:LEN - Get Free Report)'s share price reached a new 52-week low on Thursday . The company traded as low as $80.30 and last traded at $80.4280, with a volume of 162608 shares changing hands. The stock had previously closed at $82.15.

Wall Street Analyst Weigh In

LEN has been the topic of several analyst reports. Evercore lifted their target price on Lennar from $82.00 to $87.00 and gave the company an "underperform" rating in a research report on Monday, June 15th. Citigroup decreased their price target on shares of Lennar from $104.00 to $88.00 and set a "neutral" rating for the company in a research note on Wednesday, July 15th. JPMorgan Chase & Co. decreased their target price on Lennar from $80.00 to $77.00 and set an "underweight" rating for the company in a research report on Tuesday, June 16th. Seaport Research Partners restated a "sell" rating and issued a $74.00 price objective (down from $140.00) on shares of Lennar in a research note on Tuesday, April 7th. Finally, BTIG Research set a $67.00 target price on Lennar in a research report on Monday, June 15th. 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. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $92.80.

Lennar Stock Down 2.4%

The company has a fifty day moving average price of $88.01 and a 200 day moving average price of $97.38. The company has a market cap of $19.31 billion, a PE ratio of 12.57, a price-to-earnings-growth ratio of 2.72 and a beta of 1.38. The company has a debt-to-equity ratio of 0.19, a current ratio of 4.91 and a quick ratio of 0.91.

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

Lennar Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 2.5%. Lennar's dividend payout ratio (DPR) is 31.30%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Magnolia Group LLC bought a new position in shares of Lennar during the fourth quarter valued at approximately $6,756,000. KBC Group NV grew its holdings in shares of Lennar by 34.3% during the 4th quarter. KBC Group NV now owns 62,689 shares of the construction company's stock worth $6,445,000 after acquiring an additional 15,998 shares during the period. MUFG Securities EMEA plc raised its position in shares of Lennar by 2,522.7% in the 4th quarter. MUFG Securities EMEA plc now owns 114,245 shares of the construction company's stock worth $11,744,000 after acquiring an additional 109,889 shares in the last quarter. Third View Private Wealth LLC purchased a new position in shares of Lennar in the 4th quarter valued at approximately $1,269,000. Finally, Element Capital Management LLC purchased a new position in shares of Lennar in the 4th quarter valued at approximately $6,437,000. Hedge funds and other institutional investors own 81.10% of the company's stock.

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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