Lennar (NYSE:LEN) Reaches New 1-Year Low - Here's Why

Key Points

• Lennar shares fell to a new 52-week low of $73.57, below both their 50-day and 200-day moving averages. Analysts’ consensus rating is “Reduce,” with an average price target of $79.
• The company missed quarterly expectations, reporting $1.23 in adjusted EPS versus $1.29 expected and $8.05 billion in revenue versus $8.32 billion forecast; revenue declined 8.7% year over year.
• Lennar announced a quarterly dividend of $0.50 per share, representing a 2.8% yield, while Berkshire Hathaway purchased 1.7 million shares worth approximately $135.7 million.

Lennar Corporation (NYSE:LEN - Get Free Report) shares hit a new 52-week low on Wednesday. The stock traded as low as $73.57 and last traded at $73.7380, with a volume of 61,420 shares traded. The stock had previously closed at $74.92.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on LEN. Citizens Jmp reiterated a "hold" rating on shares of Lennar in a report on Thursday, September 17th. Morgan Stanley started coverage on Lennar in a report on Thursday, October 1st. They set an "underweight" rating and a $65.00 target price for the company. UBS Group dropped their price objective on shares of Lennar from $107.00 to $94.00 and set a "neutral" rating on the stock in a report on Tuesday, June 16th. Seaport Research Partners cut their price target on Lennar from $74.00 to $70.00 and set a "sell" rating on the stock in a research report on Monday, September 21st. Finally, Citigroup decreased their price objective on Lennar from $88.00 to $85.00 and set a "neutral" rating for the company in a report on Monday, September 21st. One analyst has rated the stock with a Buy rating, eight have given a Hold rating and ten have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Reduce" and a consensus target price of $79.00.

Lennar Stock Performance

The stock has a market capitalization of $17.27 billion, a PE ratio of 13.72, a price-to-earnings-growth ratio of 2.81 and a beta of 1.36. The company has a quick ratio of 0.69, a current ratio of 4.94 and a debt-to-equity ratio of 0.20. The stock has a fifty day moving average of $82.44 and a 200-day moving average of $86.15.

Lennar (NYSE:LEN - Get Free Report) last released its quarterly earnings results on Wednesday, September 16th. The construction company reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.06). The company had revenue of $8.05 billion for the quarter, compared to analysts' expectations of $8.32 billion. Lennar had a return on equity of 6.15% and a net margin of 4.09%. The business's quarterly revenue was down 8.7% on a year-over-year basis. During the same period in the previous year, the business posted $2.00 EPS. Equities analysts anticipate that Lennar Corporation will post 4.87 earnings per share for the current fiscal year.

Lennar Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 22nd. Investors of record on Wednesday, October 7th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Wednesday, October 7th. Lennar's dividend payout ratio is 37.81%.

Insider Activity at Lennar

In other news, major shareholder Berkshire Hathaway Inc bought 1,708,095 shares of the firm's stock in a transaction dated Friday, October 2nd. The stock was acquired at an average cost of $79.44 per share, for a total transaction of $135,691,066.80. Following the completion of the purchase, the insider owned 28,438,045 shares of the company's stock, valued at $2,259,118,294.80. This trade represents a 6.39% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have acquired 7,502,276 shares of company stock worth $595,303,287 over the last 90 days. Insiders own 10.05% of the company's stock.

Institutional Trading of Lennar

A number of hedge funds and other institutional investors have recently made changes to their positions in LEN. First Citizens Bank & Trust Co. bought a new position in Lennar during the 3rd quarter worth approximately $837,000. Salem Investment Counselors Inc. boosted its holdings in shares of Lennar by 1.5% in the 3rd quarter. Salem Investment Counselors Inc. now owns 262,888 shares of the construction company's stock valued at $21,449,000 after buying an additional 3,972 shares during the period. Krilogy Financial LLC raised its stake in Lennar by 21.2% during the third quarter. Krilogy Financial LLC now owns 9,933 shares of the construction company's stock worth $742,000 after acquiring an additional 1,739 shares during the period. NorthCrest Asset Manangement LLC lifted its holdings in Lennar by 15.4% in the third quarter. NorthCrest Asset Manangement LLC now owns 9,488 shares of the construction company's stock worth $736,000 after acquiring an additional 1,265 shares during the last quarter. Finally, JGP Wealth Management LLC boosted its stake in Lennar by 13.5% in the third quarter. JGP Wealth Management LLC now owns 63,537 shares of the construction company's stock valued at $5,184,000 after acquiring an additional 7,577 shares during the period. Institutional investors 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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