Lennar (NYSE:LEN) Given New $70.00 Price Target at Seaport Research Partners

Lennar (NYSE:LEN) had its price objective cut by Seaport Research Partners from $74.00 to $70.00 in a research report released on Monday morning. They currently have a sell rating on the construction company’s stock.

A number of other equities research analysts also recently weighed in on the stock. Argus set a $108.00 price target on shares of Lennar in a research note on Thursday, July 9th. Wells Fargo & Company dropped their price objective on shares of Lennar from $85.00 to $80.00 and set an “equal weight” rating for the company in a research note on Friday, September 11th. Citizens Jmp reaffirmed a “hold” rating on shares of Lennar in a research note on Thursday, September 17th. BTIG Research reiterated a “sell” rating and issued a $63.00 price target on shares of Lennar in a research note on Friday, September 18th. Finally, Bank of America lowered their target price on Lennar from $77.00 to $70.00 and set an “underperform” rating for the company in a report on Monday, September 14th. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and nine have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $81.00.

Lennar Trading Down 1.8%

Shares of LEN opened at $81.58 on Monday. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.69 and a current ratio of 4.94. Lennar has a 52-week low of $75.70 and a 52-week high of $133.76. The firm has a market cap of $19.65 billion, a price-to-earnings ratio of 15.42, a PEG ratio of 3.14 and a beta of 1.39. The business’s fifty day moving average is $83.96 and its 200-day moving average is $87.76.

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

Lennar Announces Dividend

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

Insider Activity

In other news, major shareholder Berkshire Hathaway Inc acquired 1,381,397 shares of Lennar stock in a transaction dated Friday, September 18th. The shares were bought at an average cost of $76.48 per share, with a total value of $105,649,242.56. Following the purchase, the insider owned 23,075,025 shares in the company, valued at $1,764,777,912. This trade represents a 6.37% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. In the last 90 days, insiders have purchased 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

A number of institutional investors have recently bought and sold shares of LEN. MUFG Securities EMEA plc boosted its position in shares of Lennar by 2,522.7% during the 4th quarter. MUFG Securities EMEA plc now owns 114,245 shares of the construction company’s stock valued at $11,744,000 after purchasing an additional 109,889 shares in the last quarter. Element Capital Management LLC bought a new stake in Lennar in the fourth quarter worth approximately $6,437,000. Cutler Investment Counsel LLC lifted its stake in Lennar by 59.3% in the fourth quarter. Cutler Investment Counsel LLC now owns 42,464 shares of the construction company’s stock valued at $4,365,000 after buying an additional 15,802 shares during the period. Myriad Asset Management Advisors LLC bought a new position in shares of Lennar during the 4th quarter worth approximately $1,511,000. Finally, Concurrent Investment Advisors LLC grew its position in shares of Lennar by 77.1% during the 2nd quarter. Concurrent Investment Advisors LLC now owns 89,178 shares of the construction company’s stock worth $8,070,000 after buying an additional 38,822 shares during the period. Institutional investors own 81.10% of the company’s stock.

Key Stories Impacting Lennar

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway builds nearly a 10% stake: Berkshire purchased millions of Lennar shares, bringing its ownership to approximately 10%. The investment has strengthened investor confidence and fueled a recent rally, as Berkshire has a history of investing in homebuilders. CNBC article
• Positive Sentiment: Quarterly dividend declared: Lennar will pay a $0.50-per-share dividend on October 22 to shareholders of record on October 7. The $2.00 annualized payout represents an approximately 2.5% yield and provides ongoing shareholder support. Lennar dividend announcement
• Neutral Sentiment: Expansion continues: Lennar paid $8 million for land in Sacramento’s South Natomas area and is advancing a 95-townhome project in Pebble Creek. The developments indicate continued investment in future communities but also require capital before generating revenue. South Natomas land purchase article
• Negative Sentiment: Analyst target cuts signal downside risk: Keefe, Bruyette & Woods lowered its price target from $85 to $75 and assigned an “underperform” rating. Citigroup also reduced its target to $85, reinforcing concerns about Lennar’s near-term outlook. Keefe, Bruyette & Woods forecast
• Negative Sentiment: Housing conditions remain difficult: Lennar recently missed quarterly earnings and revenue estimates, with earnings per share falling year over year and revenue declining 8.7%. Analysts remain concerned about affordability, mortgage rates and weaker demand, limiting the positive impact of Berkshire’s investment.

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.