Keefe, Bruyette & Woods Cuts Lennar (NYSE:LEN) Price Target to $75.00

Lennar (NYSE:LEN) had its price objective reduced by Keefe, Bruyette & Woods from $85.00 to $75.00 in a research note issued to investors on Tuesday,Benzinga reports. Keefe, Bruyette & Woods currently has an underperform rating on the construction company’s stock.

A number of other equities research analysts have also commented on the company. Truist Financial decreased their price objective on Lennar from $80.00 to $75.00 and set a “hold” rating for the company in a research report on Wednesday, September 16th. Zacks Research lowered shares of Lennar from a “hold” rating to a “strong sell” rating in a research report on Tuesday, June 16th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Lennar in a research report on Tuesday, September 8th. BTIG Research reiterated a “sell” rating and issued a $63.00 target price on shares of Lennar in a research report on Friday, September 18th. Finally, Citigroup decreased their target price on shares of Lennar from $88.00 to $85.00 and set a “neutral” rating for the company in a research note on Monday. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and nine have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $81.00.

Lennar Trading Down 0.2%

Lennar stock opened at $81.36 on Tuesday. Lennar has a 52 week low of $75.70 and a 52 week high of $133.76. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.69 and a current ratio of 4.94. The firm has a market capitalization of $19.60 billion, a price-to-earnings ratio of 15.38, a P/E/G ratio of 3.14 and a beta of 1.39. The company has a 50 day moving average price of $83.86 and a 200 day moving average price of $87.62.

Lennar (NYSE:LEN) last announced its earnings results on Wednesday, September 16th. The construction company reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). The firm had revenue of $8.05 billion for the quarter, compared to analyst estimates of $8.32 billion. Lennar had a net margin of 4.09% and a return on equity of 6.15%. Lennar’s revenue for the quarter was down 8.7% compared to the same quarter last year. During the same period last year, the firm earned $2.29 earnings per share. Research analysts forecast that Lennar will post 4.85 EPS for the current year.

Lennar Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 22nd. Stockholders of record on Wednesday, October 7th will be paid a dividend of $0.50 per share. The ex-dividend date is Wednesday, October 7th. This represents a $2.00 annualized dividend and a dividend yield of 2.5%. Lennar’s dividend payout ratio is 37.81%.

Insider Activity

In other Lennar news, major shareholder Berkshire Hathaway Inc acquired 667,118 shares of Lennar stock in a transaction that occurred on Monday, September 21st. The stock was acquired at an average price of $77.74 per share, with a total value of $51,861,753.32. Following the purchase, the insider owned 23,719,109 shares in the company, valued at approximately $1,843,923,533.66. This trade represents a 2.89% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last three months, insiders have acquired 2,743,529 shares of company stock valued at $212,403,202. 10.05% of the stock is currently owned by insiders.

Institutional Trading of Lennar

Institutional investors and hedge funds have recently made changes to their positions in the stock. Janus Henderson Group PLC increased its holdings in shares of Lennar by 19.7% during the 1st quarter. Janus Henderson Group PLC now owns 2,546,970 shares of the construction company’s stock valued at $221,176,000 after acquiring an additional 419,745 shares during the last quarter. Van Lanschot Kempen Investment Management N.V. boosted its position in Lennar by 90.9% during the fourth quarter. Van Lanschot Kempen Investment Management N.V. now owns 1,963,373 shares of the construction company’s stock worth $201,835,000 after purchasing an additional 934,856 shares during the period. Swiss National Bank grew its holdings in Lennar by 4.8% during the first quarter. Swiss National Bank now owns 601,468 shares of the construction company’s stock valued at $52,231,000 after purchasing an additional 27,500 shares during the last quarter. River Road Asset Management LLC raised its position 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 valued at $47,462,000 after purchasing an additional 43,186 shares during the period. Finally, National Pension Service raised its position in shares of Lennar by 4.7% in the fourth quarter. National Pension Service now owns 445,407 shares of the construction company’s stock valued at $45,788,000 after purchasing an additional 19,878 shares during the period. Institutional investors and hedge funds own 81.10% of the company’s stock.

Key Headlines Impacting Lennar

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway purchased roughly 2.74 million Lennar shares across several transactions, reinforcing a high-profile investor’s confidence while Lennar’s valuation remains depressed. Berkshire Hathaway Inc Buys 1,381,397 Shares of Lennar Stock Berkshire Hathaway Inc Purchases 695,014 Shares of Lennar Stock Berkshire Hathaway Inc Purchases 667,118 Shares of Lennar Stock
• Positive Sentiment: Lennar declared a $0.50 quarterly dividend for both share classes, payable October 22 to investors of record October 7. The payout supports shareholder returns and represents an annualized yield of approximately 2.5%. Lennar Corporation Declares Quarterly Dividends
• Positive Sentiment: The company is expanding its geographic footprint, opening an Iowa division with five Des Moines-area communities and advancing new projects in California and Minnesota, including 95 planned townhomes and additional South Natomas homes. These projects could provide future volume growth. Lennar’s New Iowa Division Opens Five Des Moines-Area Communities Lennar Pays $8 Million for Land in South Natomas Lennar Plans 95 Pebble Creek Townhomes
• Neutral Sentiment: Model homes at a new development are expected to open in October, offering a near-term indicator of local sales activity but limited immediate impact on companywide results. Lennar Model Homes Expected to Open in October
• Negative Sentiment: Keefe, Bruyette & Woods issued a pessimistic forecast, while Citigroup reduced its Lennar price target to $85, signaling limited upside from current levels. Keefe, Bruyette & Woods Issues Pessimistic Forecast for Lennar Citigroup Lowers Lennar Price Target to $85
• Negative Sentiment: Recent quarterly results showed weakening fundamentals: EPS and revenue missed estimates, EPS fell from the prior-year period, and revenue declined 8.7%. Management’s earnings call also highlighted continued housing-market strain. Lennar Earnings Call: Solid Execution Amid Housing Strain
• Negative Sentiment: A lawsuit over the rejection of Lennar’s proposed 265-unit condominium development in Geneva is moving forward, creating legal and permitting uncertainty around the project. Lennar Lawsuit Against Geneva Moves Forward

Lennar Company Profile

Lennar Corporation is one of the largest homebuilders in the United States. Founded in 1954 and headquartered in Miami, Florida, the company designs, constructs, and sells single-family homes and communities for a range of buyers, including first-time, move-up, and active-adult purchasers.

Lennar operates across many of the country’s major housing markets, including communities in the West, Southwest, Southeast, Mid-Atlantic, and other metropolitan areas. Its homebuilding operations offer a variety of floor plans and home designs, while the company also develops residential communities and provides related services such as mortgage financing, title, and closing services through its financial-services businesses.

In addition to traditional homebuilding, Lennar has expanded into multifamily development and other residential real-estate activities.