The Goldman Sachs Group Issues Pessimistic Forecast for Lennar (NYSE:LEN) Stock Price

Key Points

• The Goldman Sachs Group cut its price target on Lennar to $100 (from $110) and maintained a neutral rating, implying roughly a 12.9% upside from the current share price.
• Lennar missed the quarter, reporting EPS of $0.88 vs. $0.95 expected and revenue of $6.62 billion vs. $6.90 billion, with quarterly revenue down 13.3% year‑over‑year.
• MarketBeat shows a consensus rating of Reduce with a $98.79 target (one Strong Buy, ten Holds, eight Sells); the stock trades near $88.60 and is about 81.1% owned by institutional investors.

Lennar (NYSE:LEN - Get Free Report) had its price objective reduced by equities research analysts at The Goldman Sachs Group from $110.00 to $100.00 in a research note issued to investors on Friday,MarketScreener reports. The brokerage presently has a "neutral" rating on the construction company's stock. The Goldman Sachs Group's target price would suggest a potential upside of 12.87% from the stock's current price.

A number of other analysts have also commented on LEN. Truist Financial cut their price target on Lennar from $95.00 to $90.00 and set a "hold" rating on the stock in a research note on Tuesday, March 31st. Zacks Research raised Lennar from a "strong sell" rating to a "hold" rating in a research report on Thursday, March 19th. Weiss Ratings lowered shares of Lennar from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, March 16th. Argus upgraded shares of Lennar to a "strong-buy" rating in a report on Friday, January 16th. Finally, Bank of America reissued an "underperform" rating and set a $95.00 target price (down from $125.00) on shares of Lennar in a research report on Thursday, December 18th. One equities research 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 stock. Based on data from MarketBeat, Lennar presently has a consensus rating of "Reduce" and a consensus target price of $98.79.

Lennar Trading Down 0.4%

Shares of Lennar stock opened at $88.60 on Friday. The stock has a market cap of $21.88 billion, a P/E ratio of 12.75, a P/E/G ratio of 1.90 and a beta of 1.47. Lennar has a 12-month low of $83.03 and a 12-month high of $144.24. The business's 50 day moving average is $103.32 and its 200-day moving average is $113.78. The company has a quick ratio of 0.97, a current ratio of 4.77 and a debt-to-equity ratio of 0.18.

Lennar (NYSE:LEN - Get Free Report) last posted its earnings results on Thursday, March 12th. The construction company reported $0.88 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.95 by ($0.07). The company had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.90 billion. Lennar had a return on equity of 7.80% and a net margin of 5.39%.The business's quarterly revenue was down 13.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.14 EPS. Equities research analysts predict that Lennar will post 12.48 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lennar

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LEN. World Investment Advisors increased its stake in Lennar by 40.7% in the fourth quarter. World Investment Advisors now owns 2,423 shares of the construction company's stock valued at $249,000 after acquiring an additional 701 shares during the last quarter. Corient Private Wealth LLC raised its holdings in Lennar by 3.6% during the 4th quarter. Corient Private Wealth LLC now owns 68,662 shares of the construction company's stock valued at $7,058,000 after buying an additional 2,381 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Lennar in the 4th quarter worth about $244,000. Instrumental Wealth LLC bought a new stake in shares of Lennar in the 4th quarter worth $307,000. Finally, River Road Asset Management LLC boosted its holdings in shares of Lennar by 10.3% in the fourth quarter. River Road Asset Management LLC now owns 461,696 shares of the construction company's stock worth $47,462,000 after buying an additional 43,186 shares during the last quarter. 81.10% of the stock is currently owned by hedge funds and other institutional investors.

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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