Lennar (NYSE:LEN) Coverage Initiated by Analysts at Melius Research

by · The Markets Daily

Melius Research began coverage on shares of Lennar (NYSE:LEN – Free Report) in a research note published on Tuesday, Marketbeat Ratings reports. The firm issued a sell rating and a $72.00 price target on the construction company’s stock.

Several other research firms have also recently issued reports on LEN. Zacks Research cut shares of Lennar from a “hold” rating to a “strong sell” rating in a research note on Tuesday, June 16th. Barclays decreased their price target on shares of Lennar from $79.00 to $70.00 and set an “underweight” rating on the stock in a report on Friday, September 18th. Royal Bank Of Canada dropped their price objective on Lennar from $85.00 to $69.00 and set an “underperform” rating for the company in a research note on Friday, September 18th. Weiss Ratings restated a “sell (d+)” rating on shares of Lennar in a research note on Tuesday, September 8th. Finally, Wells Fargo & Company lowered their price target on Lennar from $85.00 to $80.00 and set an “equal weight” rating on the stock in a report on Friday, September 11th. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and eleven have assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Strong Sell” and an average price target of $79.33.

Get Our Latest Stock Report on Lennar

Lennar Stock Up 3.8%

LEN stock opened at $77.26 on Tuesday. The stock has a 50-day simple moving average of $83.31 and a two-hundred day simple moving average of $86.72. Lennar has a twelve month low of $73.75 and a twelve month high of $133.76. The firm has a market capitalization of $18.61 billion, a PE ratio of 14.61, a PEG ratio of 2.80 and a beta of 1.36. The company has a quick ratio of 0.69, a current ratio of 4.94 and a debt-to-equity ratio of 0.20.

Lennar (NYSE:LEN – Get Free Report) last announced its quarterly earnings results on Wednesday, September 16th. The construction company reported $1.23 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.29 by ($0.06). The firm had revenue of $8.05 billion during the quarter, compared to analysts’ expectations of $8.32 billion. Lennar had a return on equity of 6.15% and a net margin of 4.09%.The company’s quarterly revenue was down 8.7% compared to the same quarter last year. During the same period in the previous year, the company posted $2.00 earnings per share. On average, equities analysts predict that Lennar will post 4.87 EPS for the current fiscal year.

Lennar Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 22nd. Shareholders of record on Wednesday, October 7th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $2.00 annualized dividend and a yield of 2.6%. Lennar’s payout ratio is 37.81%.

Insider Activity

In other news, major shareholder Berkshire Hathaway Inc acquired 1,708,095 shares of Lennar stock in a transaction dated Friday, October 2nd. The shares were purchased at an average cost of $79.44 per share, for a total transaction of $135,691,066.80. Following the transaction, the insider owned 28,438,045 shares of the company’s stock, valued at $2,259,118,294.80. This trade represents a 6.39% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. In the last three months, insiders bought 7,502,276 shares of company stock valued at $595,303,287. 10.05% of the stock is currently owned by corporate insiders.

Institutional Trading of Lennar

Hedge funds and other institutional investors have recently bought and sold shares of the company. Janus Henderson Group PLC raised its stake in shares of Lennar by 19.7% during the first quarter. Janus Henderson Group PLC now owns 2,546,970 shares of the construction company’s stock worth $221,176,000 after acquiring an additional 419,745 shares in the last quarter. Van Lanschot Kempen Investment Management N.V. grew its holdings in shares of Lennar by 90.9% during the 4th quarter. Van Lanschot Kempen Investment Management N.V. now owns 1,963,373 shares of the construction company’s stock valued at $201,835,000 after purchasing an additional 934,856 shares during the last quarter. Swiss National Bank grew its holdings in shares of Lennar by 4.8% during the 1st 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 Lennar by 10.3% in the 4th quarter. River Road Asset Management LLC now owns 461,696 shares of the construction company’s stock worth $47,462,000 after purchasing an additional 43,186 shares during the period. Finally, Nan Shan Life Insurance Co. Ltd. lifted its stake in Lennar by 6,292.5% in the second quarter. Nan Shan Life Insurance Co. Ltd. now owns 328,000 shares of the construction company’s stock worth $29,681,000 after purchasing an additional 322,869 shares during the last quarter. Hedge funds and other institutional investors 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 bought roughly $193 million of additional Lennar stock. The purchases of 710,542 shares on October 1 and 1.71 million shares on October 2 increased Berkshire’s stake to approximately 12%. The buying may provide investor confidence and a potential valuation floor, although Berkshire’s purchases occurred before the latest decline. Berkshire Buys More Lennar Stock
  • Positive Sentiment: The stock’s rebound suggests bargain-hunting after a steep selloff. Berkshire’s willingness to increase its position despite housing weakness is reinforcing a longer-term investment case based on Lennar’s scale, land holdings and future housing demand. Lennar Receives Berkshire Boost
  • Neutral Sentiment: Legal and operational scrutiny is increasing. Investor law firms are investigating potential securities-law violations and dealings involving Millrose Properties, while Texas homeowners have alleged serious structural defects. Lennar has responded to the homeowner reports, but the allegations could create reputational, legal and remediation risks. These investigations are not findings of wrongdoing. Lennar Investor Investigation
  • Negative Sentiment: Melius Research initiated coverage with a Sell rating and a $72 price target. The target implies additional downside and adds to an already bearish analyst consensus. Other analysts have cited high mortgage rates, poor affordability, weaker home prices and margin compression. Melius Research Initiates Lennar Coverage
  • Negative Sentiment: Fundamentals remain weak. Lennar’s latest quarterly EPS of $1.23 missed the $1.29 consensus, revenue fell 8.7% year over year to $8.05 billion, and Berkshire CEO Greg Abel reportedly does not expect a quick housing recovery. Reports questioning deliveries and home quality add further uncertainty. Berkshire Buys Lennar While Recovery Remains Slow

About Lennar

(Get Free Report)

Lennar Corporation (NYSE: LEN) is a homebuilding company that designs, constructs and sells single-family homes and, through its multifamily operations, develops apartment communities. Its residential offerings generally include homes across a range of sizes and prices, serving first-time, move-up and active-adult buyers.

The company also provides related services through businesses involved in mortgage financing, title and closing services, insurance and other real estate activities. Lennar develops residential communities and manages land acquisition, planning and construction as part of its integrated homebuilding model.

Founded in 1954, Lennar has expanded from its origins in South Florida into a national homebuilder serving numerous markets across the United States.

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