Lennar (NYSE:LEN) Stock Falls 5.3% - Should You Sell?

Lennar Corporation (NYSE:LEN - Get Free Report) dropped 5.3% on Monday. The stock traded as low as $75.74 and last traded at $75.6030. Approximately 3,121,694 shares changed hands during trading, a decline of 0% from the average daily volume of 3,128,433 shares. The stock had previously closed at $79.81.

Analyst Upgrades and Downgrades

LEN has been the topic of a number of recent analyst reports. Bank of America reduced their price objective on Lennar from $77.00 to $70.00 and set an "underperform" rating on the stock in a research note on Monday, September 14th. Argus set a $108.00 price objective on shares of Lennar in a research note on Thursday, July 9th. Truist Financial decreased their target price on Lennar from $80.00 to $75.00 and set a "hold" rating for the company in a research report on Wednesday, September 16th. Weiss Ratings reissued a "sell (d+)" rating on shares of Lennar in a report on Tuesday, September 8th. Finally, UBS Group decreased their price objective on Lennar from $107.00 to $94.00 and set a "neutral" rating for the company in a research report on Tuesday, June 16th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and ten have given a Sell rating to the company's stock. According to MarketBeat.com, Lennar currently has an average rating of "Reduce" and an average target price of $79.86.

Lennar Trading Down 5.9%

The firm has a market cap of $18.09 billion, a price-to-earnings ratio of 14.21, a P/E/G ratio of 3.00 and a beta of 1.36. The company has a debt-to-equity ratio of 0.20, a current ratio of 4.94 and a quick ratio of 0.69. The business has a 50-day moving average of $83.73 and a 200-day moving average of $87.01.

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

Lennar Dividend Announcement

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

Insider Transactions at Lennar

In other Lennar news, major shareholder Berkshire Hathaway Inc purchased 642,821 shares of Lennar stock in a transaction that occurred on Wednesday, September 30th. The stock was acquired at an average price of $81.58 per share, for a total transaction of $52,441,337.18. Following the completion of the acquisition, the insider owned 26,034,436 shares of the company's stock, valued at approximately $2,123,889,288.88. This trade represents a 2.53% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. In the last three months, insiders have bought 5,083,639 shares of company stock valued at $402,669,384. Company insiders own 10.05% of the company's stock.

Hedge Funds Weigh In On Lennar

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Polaris Financial Partners bought a new stake in shares of Lennar during the 3rd quarter worth about $27,000. Phillip James Consulting Co. bought a new stake in shares of Lennar during the 1st quarter valued at $30,000. Global Assets Advisory LLC acquired a new stake in Lennar during the first quarter worth about $39,000. Anchor Investment Management LLC boosted its position in shares of Lennar by 1,276.4% during 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 in the last quarter. Finally, Elevation Wealth Partners LLC boosted its holdings in shares of Lennar by 1,272.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 796 shares of the construction company's stock valued at $72,000 after purchasing an additional 738 shares in the last quarter. 81.10% of the stock is owned by institutional investors.

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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