The Goldman Sachs Group Has Lowered Expectations for Lennar (NYSE:LEN) Stock Price

Key Points

• Goldman Sachs cut its price target on Lennar from $125 to $118 while maintaining a "neutral" rating, a target the firm says implies roughly a 16% upside from the stock's current price.
• Across the street, analysts have been trimming targets and ratings—leaving Lennar with a MarketBeat consensus of "Reduce" and a consensus target of $106.14 (one Strong Buy, ten Holds, eight Sells).
• Lennar reported Q (Dec) EPS of $2.03, missing estimates by $0.27, with revenue of $9.37B down 5.8% year-over-year, a performance that has likely contributed to the downgrades.

Lennar (NYSE:LEN - Get Free Report) had its target price cut by research analysts at The Goldman Sachs Group from $125.00 to $118.00 in a research note issued to investors on Thursday,MarketScreener reports. The brokerage presently has a "neutral" rating on the construction company's stock. The Goldman Sachs Group's price target suggests a potential upside of 16.34% from the stock's current price.

Several other equities research analysts have also recently issued reports on the company. Citigroup cut their target price on Lennar from $133.00 to $113.00 and set a "neutral" rating for the company in a research note on Thursday, January 8th. Zacks Research cut Lennar from a "hold" rating to a "strong sell" rating in a report on Thursday, January 8th. Argus upgraded shares of Lennar to a "strong-buy" rating in a report on Friday, January 16th. Barclays decreased their target price on shares of Lennar from $98.00 to $88.00 and set an "underweight" rating on the stock in a research report on Thursday, December 18th. Finally, Wells Fargo & Company lowered their target price on Lennar from $110.00 to $105.00 and set an "equal weight" rating for the company in a report on Tuesday, January 6th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Hold rating and eight have issued a Sell rating to the company's stock. Based on data from MarketBeat, Lennar presently has a consensus rating of "Reduce" and a consensus target price of $106.14.

Lennar Price Performance

Shares of LEN stock opened at $101.43 on Thursday. The company has a debt-to-equity ratio of 0.18, a current ratio of 4.89 and a quick ratio of 1.36. The company has a market capitalization of $25.05 billion, a PE ratio of 12.69, a price-to-earnings-growth ratio of 1.51 and a beta of 1.43. The firm's 50-day moving average is $113.21 and its two-hundred day moving average is $120.98. Lennar has a 12 month low of $98.42 and a 12 month high of $144.24.

Lennar (NYSE:LEN - Get Free Report) last announced its quarterly earnings results on Tuesday, December 16th. The construction company reported $2.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.30 by ($0.27). The firm had revenue of $9.37 billion for the quarter, compared to analyst estimates of $9.17 billion. Lennar had a return on equity of 9.27% and a net margin of 6.08%.The firm's quarterly revenue was down 5.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $4.03 EPS. Analysts predict that Lennar will post 12.48 earnings per share for the current year.

Hedge Funds Weigh In On Lennar

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Guerra Advisors Inc acquired a new stake in Lennar in the third quarter valued at approximately $25,000. KERR FINANCIAL PLANNING Corp acquired a new position in Lennar during the 3rd quarter worth approximately $25,000. Redmont Wealth Advisors LLC purchased a new stake in shares of Lennar in the 3rd quarter valued at approximately $26,000. High Point Wealth Management LLC acquired a new stake in shares of Lennar in the 4th quarter valued at $31,000. Finally, DV Equities LLC purchased a new stake in shares of Lennar during the 4th quarter worth $31,000. Hedge funds and other institutional investors own 81.10% of the company's stock.

About Lennar

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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