Wells Fargo & Company Issues Pessimistic Forecast for Lennar (NYSE:LEN) Stock Price

Key Points

• Wells Fargo cut its price target on Lennar from $105 to $100 and kept an "equal weight" rating, implying about a 5.35% upside from the prior close.
• Analyst sentiment has trended negative: the consensus is a "Reduce" rating with an average price target of $104.71 after multiple firms lowered targets and several downgrades.
• Lennar is trading around $94.92 and recently missed quarterly expectations (EPS $0.88 vs. $0.95; revenue $6.62B vs. $6.90B), with revenue down 13.3% year-over-year.

Lennar (NYSE:LEN - Get Free Report) had its price objective dropped by analysts at Wells Fargo & Company from $105.00 to $100.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the construction company's stock. Wells Fargo & Company's target price would indicate a potential upside of 5.35% from the stock's previous close.

Several other research analysts have also weighed in on LEN. Citigroup reduced their price objective on shares of Lennar from $133.00 to $113.00 and set a "neutral" rating on the stock in a research note on Thursday, January 8th. Argus upgraded shares of Lennar to a "strong-buy" rating in a report on Friday, January 16th. Barclays reduced their price target 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. Bank of America restated an "underperform" rating and issued a $95.00 price objective (down from $125.00) on shares of Lennar in a research report on Thursday, December 18th. Finally, The Goldman Sachs Group dropped their price objective on Lennar from $125.00 to $118.00 and set a "neutral" rating on the stock in a research note on Thursday, March 5th. One 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 company. Based on data from MarketBeat, Lennar presently has a consensus rating of "Reduce" and an average price target of $104.71.

Lennar Trading Down 0.0%

NYSE LEN traded down $0.04 on Monday, reaching $94.92. The company had a trading volume of 557,782 shares, compared to its average volume of 2,968,335. Lennar has a 52 week low of $92.17 and a 52 week high of $144.24. The stock's 50 day moving average is $112.52 and its 200-day moving average is $119.53. The company has a quick ratio of 0.97, a current ratio of 4.77 and a debt-to-equity ratio of 0.18. The stock has a market cap of $23.44 billion, a price-to-earnings ratio of 13.64, a PEG ratio of 1.37 and a beta of 1.43.

Lennar (NYSE:LEN - Get Free Report) last issued 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 the consensus estimate of $6.90 billion. Lennar had a return on equity of 7.80% and a net margin of 5.39%.Lennar's quarterly revenue was down 13.3% on a year-over-year basis. During the same quarter last year, the business posted $2.14 EPS. Equities analysts predict that Lennar will post 12.48 earnings per share for the current year.

Institutional Investors Weigh In On Lennar

A number of hedge funds and other institutional investors have recently made changes to their positions in LEN. Lazard Asset Management LLC lifted its position in Lennar by 7.1% in the 2nd quarter. Lazard Asset Management LLC now owns 1,278 shares of the construction company's stock valued at $141,000 after acquiring an additional 85 shares in the last quarter. Zions Bancorporation National Association UT increased its holdings in Lennar by 8.3% during the 3rd quarter. Zions Bancorporation National Association UT now owns 1,127 shares of the construction company's stock worth $142,000 after purchasing an additional 86 shares in the last quarter. RFG Advisory LLC raised its stake in shares of Lennar by 2.1% in the 3rd quarter. RFG Advisory LLC now owns 4,255 shares of the construction company's stock valued at $536,000 after purchasing an additional 87 shares during the period. Rossby Financial LCC lifted its holdings in shares of Lennar by 9.1% in the fourth quarter. Rossby Financial LCC now owns 1,059 shares of the construction company's stock valued at $109,000 after purchasing an additional 88 shares in the last quarter. Finally, UMB Bank n.a. boosted its position in shares of Lennar by 6.2% during the third quarter. UMB Bank n.a. now owns 1,595 shares of the construction company's stock worth $201,000 after buying an additional 93 shares during the period. 81.10% of the stock is currently owned by institutional investors and hedge funds.

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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