Lennar Corporation $LEN Stock: Pinnacle Associates Ltd. Reduces Holdings

Pinnacle Associates Ltd. reduced its stake in Lennar Corporation (NYSE:LEN) by 27.6% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 25,506 shares of the construction company’s stock after selling 9,740 shares during the period. Pinnacle Associates Ltd.’s holdings in Lennar were worth $2,081,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also added to or reduced their stakes in the stock. Rare Wolf Capital LLC bought a new position in Lennar during the 3rd quarter worth $298,000. Vision Capital Management Inc. lifted its position in Lennar by 240.4% during the third quarter. Vision Capital Management Inc. now owns 19,581 shares of the construction company’s stock worth $1,598,000 after purchasing an additional 13,828 shares during the period. Vontobel Holding Ltd. grew its stake in Lennar by 58.7% during the third quarter. Vontobel Holding Ltd. now owns 23,161 shares of the construction company’s stock worth $1,890,000 after buying an additional 8,568 shares in the last quarter. Mosley Wealth Management grew its stake in Lennar by 50.2% during the third quarter. Mosley Wealth Management now owns 3,729 shares of the construction company’s stock worth $290,000 after buying an additional 1,247 shares in the last quarter. Finally, Banque Pictet & Cie SA bought a new position in Lennar in the 3rd quarter valued at about $414,000. Institutional investors and hedge funds own 81.10% of the company’s stock.

Lennar Trading Up 0.7%

Shares of LEN stock opened at $85.06 on Friday. Lennar Corporation has a twelve month low of $71.78 and a twelve month high of $133.76. The stock’s fifty day simple moving average is $81.17 and its 200 day simple moving average is $85.67. 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 firm has a market capitalization of $20.24 billion, a P/E ratio of 16.08, a P/E/G ratio of 3.17 and a beta of 1.36.

Lennar (NYSE:LEN) last posted its earnings results on Wednesday, September 16th. The construction company reported $1.23 EPS for the quarter, missing the consensus estimate of $1.29 by ($0.06). The firm had revenue of $8.05 billion during the quarter, compared to the consensus estimate 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 quarter in the prior year, the business posted $2.00 earnings per share. As a group, sell-side analysts predict that Lennar Corporation will post 4.88 EPS for the current fiscal year.

Lennar Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 22nd. Investors of record on Wednesday, October 7th were given a dividend of $0.50 per share. The ex-dividend date was Wednesday, October 7th. This represents a $2.00 annualized dividend and a yield of 2.4%. Lennar’s dividend payout ratio (DPR) is currently 37.81%.

Insider Buying and Selling

In other Lennar news, major shareholder Berkshire Hathaway Inc bought 1,708,095 shares of Lennar stock in a transaction on Friday, October 2nd. The shares were purchased at an average cost of $79.44 per share, with a total value of $135,691,066.80. Following the acquisition, the insider directly owned 28,438,045 shares of the company’s stock, valued at $2,259,118,294.80. The trade was a 6.39% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last 90 days, insiders have purchased 7,502,276 shares of company stock worth $595,303,287. 10.05% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

LEN has been the subject of a number of recent analyst reports. Truist Financial cut their price target on shares of Lennar from $80.00 to $75.00 and set a “hold” rating for the company in a report on Wednesday, September 16th. BTIG Research reissued a “sell” rating and issued a $63.00 price objective on shares of Lennar in a research note on Friday, September 18th. Weiss Ratings downgraded shares of Lennar from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday. Royal Bank Of Canada cut their target price on Lennar from $85.00 to $69.00 and set an “underperform” rating for the company in a research note on Friday, September 18th. Finally, Melius Research initiated coverage on Lennar in a report on Tuesday, October 6th. They issued a “sell” rating and a $72.00 target price on the stock. One equities research analyst has rated the stock with a Buy rating, seven have given a Hold rating and eleven have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Strong Sell” and a consensus target price of $79.00.

Key Stories Impacting Lennar

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Lower rates lift the homebuilder sector: The average 30-year mortgage rate declined to 7.32%, while Treasury yields also eased. The improved financing outlook encouraged investors to rotate back into beaten-down homebuilders, including Lennar. Lennar gains as lower rates appear to lift beaten-down homebuilders
• Positive Sentiment: Institutional buying and valuation appeal: Berkshire Hathaway and other large institutions reportedly increased their Lennar holdings in the latest quarter. A GuruFocus analysis also estimated fair value at $124.32 versus a recent share price of $84.45, potentially reinforcing the view that LEN is undervalued. A Look at Lennar Corp After 8.7% Gain
• Positive Sentiment: Continued community expansion: Lennar broke ground on a 220-home community at Fort Monmouth in Eatontown, New Jersey, and was identified as the buyer of the former Boynton Beach Mall site in Florida. These projects expand its future housing pipeline, although their earnings impact will develop over time. Lennar breaks ground on 220-home community at Fort Monmouth Lennar revealed as buyer of Boynton Beach Mall
• Neutral Sentiment: Broader real-estate rally: Lennar rose alongside Zillow and CoStar as analysts raised targets for parts of the real-estate sector, suggesting some of the move reflected industry-wide momentum rather than a Lennar-specific catalyst. CoStar Soars as Zillow and Lennar Rally
• Negative Sentiment: Fundamental concerns remain: Lennar’s latest reported quarter missed earnings and revenue expectations, with earnings per share falling year over year and revenue declining 8.7%. Earlier weakness also reflected a reduced delivery outlook, leaving the stock sensitive to mortgage rates, affordability and execution risks. Lennar Stock Sinks as Market Gains

Lennar Company Profile

Lennar Corporation (NYSE:LEN) is a homebuilding and real estate company that develops, constructs, and sells primarily single-family homes. The company offers homes across a range of price points and designs, including residences for first-time, move-up, luxury, and active-adult buyers. Its operations also include land acquisition and development, allowing Lennar to prepare communities and lots for residential construction.

In addition to homebuilding, Lennar develops multifamily rental properties and provides related financial services.