Lennar (NYSE:LEN) Downgraded by Zacks Research to “Strong Sell”

Zacks Research cut shares of Lennar (NYSE:LEN) from a hold rating to a strong sell rating in a research note issued to investors on Tuesday morning,Zacks.com reports.

LEN has been the subject of several other reports. Evercore lifted their target price on shares of Lennar from $82.00 to $87.00 and gave the company an “underperform” rating in a report on Monday. Argus cut their target price on shares of Lennar from $140.00 to $125.00 and set a “buy” rating for the company in a report on Wednesday, April 15th. Citigroup cut their target price on shares of Lennar from $113.00 to $104.00 and set a “neutral” rating for the company in a report on Tuesday, March 17th. JPMorgan Chase & Co. cut their target price on shares of Lennar from $80.00 to $77.00 and set an “underweight” rating for the company in a report on Tuesday. Finally, Barclays cut their price target on shares of Lennar from $80.00 to $79.00 and set an “underweight” rating for the company in a report on Monday. One equities research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and ten have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target of $95.00.

Lennar Price Performance

NYSE:LEN opened at $86.42 on Tuesday. The company has a debt-to-equity ratio of 0.19, a current ratio of 4.91 and a quick ratio of 0.91. The firm has a market cap of $21.34 billion, a price-to-earnings ratio of 13.52, a price-to-earnings-growth ratio of 2.97 and a beta of 1.39. The company has a 50 day moving average price of $89.47 and a 200-day moving average price of $102.32. Lennar has a 1-year low of $81.18 and a 1-year high of $144.24.

Lennar (NYSE:LEN) last posted its earnings results on Thursday, June 11th. The construction company reported $1.31 earnings per share for the quarter, beating the consensus estimate of $1.24 by $0.07. The firm had revenue of $7.94 billion during the quarter, compared to analyst estimates of $8.08 billion. Lennar had a net margin of 4.93% and a return on equity of 7.08%. The business’s quarterly revenue was down 5.2% on a year-over-year basis. During the same period in the previous year, the firm earned $1.81 EPS. Equities research analysts forecast that Lennar will post 5.53 EPS for the current year.

Lennar Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 6th. Investors of record on Wednesday, April 22nd were issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Wednesday, April 22nd. Lennar’s payout ratio is presently 31.30%.

Institutional Investors Weigh In On Lennar

Large investors have recently modified their holdings of the business. KERR FINANCIAL PLANNING Corp purchased a new stake in shares of Lennar during the third quarter worth $25,000. Redmont Wealth Advisors LLC purchased a new stake in shares of Lennar during the third quarter worth $26,000. Phillip James Consulting Co. purchased a new stake in shares of Lennar during the first quarter worth $30,000. High Point Wealth Management LLC purchased a new stake in shares of Lennar during the fourth quarter worth $31,000. Finally, DV Equities LLC purchased a new stake in shares of Lennar during the fourth quarter worth $31,000. Hedge funds and other institutional investors own 81.10% of the company’s stock.

More Lennar News

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Lennar is still focusing on operational execution, including higher deliveries, faster build times, and technology investments, which could help support volume even in a tough housing market. Article Title
• Neutral Sentiment: The company is getting some attention for a new attached-home community in Santa Clarita, another sign Lennar is leaning into product mix and community expansion. Article Title
• Neutral Sentiment: Some investors and commentators are debating whether Lennar’s pullback has created a value opportunity, since the stock now looks cheaper on valuation metrics. Article Title
• Negative Sentiment: Wall Street sentiment has turned more cautious, with Keefe, Bruyette & Woods and JPMorgan both lowering price targets and maintaining bearish ratings, reinforcing concern about downside risk. Article Title Article Title
• Negative Sentiment: Recent reports highlight stretched affordability, heavy incentives per home, falling sales prices, and tight margins, suggesting Lennar may need to keep discounting to sustain demand. Article Title Article Title
• Negative Sentiment: Analysts also warn that Lennar’s recent earnings trends, estimate cuts, and broader housing-sector headwinds could make the stock look more like a value trap than a bargain. Article Title Article Title

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.