Lennar (NYSE:LEN) Stock Rated “Sell” in New Coverage at Melius Research

Melius Research assumed coverage on shares of Lennar (NYSE:LEN) in a report published on Tuesday, Marketbeat reports. The brokerage issued a sell rating and a $72.00 price objective on the construction company’s stock.

A number of other brokerages have also recently issued reports on LEN. Bank of America reduced their price objective on shares of Lennar from $77.00 to $70.00 and set an “underperform” rating for the company in a research note on Monday, September 14th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Lennar in a report on Tuesday, September 8th. JPMorgan Chase & Co. cut their price target on Lennar from $80.00 to $77.00 and set an “underweight” rating for the company in a research note on Tuesday, June 16th. Citizens Jmp reissued a “hold” rating on shares of Lennar in a report on Thursday, September 17th. Finally, Seaport Research Partners lowered their price objective on Lennar from $74.00 to $70.00 and set a “sell” rating on the stock in a research report on Monday, September 21st. One equities research analyst has rated the stock with a Buy rating, eight have issued a Hold rating and ten have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Lennar has an average rating of “Reduce” and a consensus price target of $79.00.

Lennar Stock Up 1.7%

NYSE LEN opened at $77.44 on Tuesday. Lennar has a 52 week low of $73.75 and a 52 week high of $133.76. The company has a quick ratio of 0.69, a current ratio of 4.94 and a debt-to-equity ratio of 0.20. The company has a market capitalization of $18.66 billion, a P/E ratio of 14.64, a price-to-earnings-growth ratio of 2.86 and a beta of 1.36. The stock’s 50-day moving average price is $83.02 and its 200-day moving average price is $86.51.

Lennar (NYSE:LEN) last announced its quarterly earnings data 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). Lennar had a net margin of 4.09% and a return on equity of 6.15%. The company had revenue of $8.05 billion for the quarter, compared to the consensus estimate of $8.32 billion. During the same quarter last year, the firm posted $2.00 earnings per share. The company’s revenue was down 8.7% compared to the same quarter last year. On average, equities research analysts predict that Lennar will post 4.87 earnings per share for the current year.

Lennar Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 22nd. Stockholders of record on Wednesday, October 7th will be given a $0.50 dividend. The ex-dividend date of this dividend is Wednesday, October 7th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.6%. Lennar’s dividend payout ratio (DPR) is presently 37.81%.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Lennar

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Wisconsin Wealth Advisors LLC boosted its stake in Lennar by 2.2% in the 3rd quarter. Wisconsin Wealth Advisors LLC now owns 6,495 shares of the construction company’s stock worth $530,000 after purchasing an additional 140 shares in the last quarter. Kwmg LLC increased its stake in Lennar by 7.0% during the 3rd quarter. Kwmg LLC now owns 57,288 shares of the construction company’s stock valued at $4,674,000 after purchasing an additional 3,726 shares in the last quarter. Ridgewood Investments LLC raised its holdings in shares of Lennar by 36.1% in the third quarter. Ridgewood Investments LLC now owns 14,543 shares of the construction company’s stock worth $1,187,000 after buying an additional 3,857 shares during the last quarter. Norman Fields Gottscho Capital Management LLC lifted its stake in shares of Lennar by 126.9% during the third quarter. Norman Fields Gottscho Capital Management LLC now owns 8,183 shares of the construction company’s stock worth $668,000 after buying an additional 4,576 shares during the period. Finally, Polaris Financial Partners purchased a new stake in shares of Lennar during the third quarter valued at $27,000. 81.10% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Lennar

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway continues accumulating shares. Reports indicate Berkshire purchased approximately 1.7 million additional Lennar shares, bringing its stake above 11%—and reportedly near 12%—of the homebuilder. The investment may bolster confidence in Lennar’s long-term value, particularly because the shares trade below book value. Lennar insider share purchase
• Positive Sentiment: Valuation is attracting value-oriented investors. Commentary highlights Lennar’s roughly 0.83-times book-value multiple and relatively modest earnings multiple after a steep 12-month decline. Investors may view the discount as an opportunity if housing demand and profitability recover. Lennar valuation and Berkshire purchases
• Neutral Sentiment: Lennar is emphasizing volume over margins. The company is using lower costs, faster construction cycles and pricing strategies to protect affordability and maintain home deliveries. This could support revenue and market share, but it may limit near-term margins. Lennar volume strategy
• Negative Sentiment: Several law firms announced investigations into Lennar. The inquiries follow an October 2 Hunterbrook Media report alleging potential securities-law violations. The announcements are investor-solicitation notices, and no wrongdoing has been established, but they create litigation, reputational and potential financial risks. Lennar securities-fraud investigation
• Negative Sentiment: Higher mortgage rates are pressuring housing affordability. Thirty-year mortgage rates are approaching 7.5%, forcing builders to offer incentives or accept lower margins to keep buyers engaged. Lennar’s recent quarterly results also missed analyst expectations, with revenue and earnings declining year over year. Mortgage rate pressure on homebuilders

About Lennar

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.