Seaport Research Partners Cuts Lennar (NYSE:LEN) Price Target to $70.00

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

Several other equities research analysts have also recently weighed in on LEN. Zacks Research cut shares of Lennar from a “hold” rating to a “strong sell” rating in a research report on Tuesday, June 16th. JPMorgan Chase & Co. reduced their price objective on shares of 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 restated a “hold” rating on shares of Lennar in a report on Thursday, September 17th. Wells Fargo & Company dropped their target price on Lennar from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Friday, September 11th. Finally, Argus set a $108.00 price target on Lennar in a research report on Thursday, July 9th. One equities research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and nine have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and an average target price of $81.00.

Lennar Stock Down 1.5%

Shares of NYSE LEN opened at $80.29 on Monday. The stock has a 50 day moving average price of $83.96 and a 200 day moving average price of $87.76. The firm has a market capitalization of $19.34 billion, a price-to-earnings ratio of 15.20, a PEG ratio of 3.14 and a beta of 1.39. Lennar has a 52-week low of $75.70 and a 52-week high of $133.76. 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 (NYSE:LEN) last issued its earnings results 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). 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%.Lennar’s quarterly revenue was down 8.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.29 earnings per share. Sell-side analysts expect that Lennar will post 4.85 earnings per share for the current year.

Lennar Announces Dividend

The business also recently declared 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 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Wednesday, October 7th. Lennar’s dividend payout ratio (DPR) is currently 37.81%.

Insider Buying and Selling at Lennar

In related news, major shareholder Berkshire Hathaway Inc purchased 1,381,397 shares of the company’s stock in a transaction that occurred on Friday, September 18th. The shares were purchased at an average price of $76.48 per share, with a total value of $105,649,242.56. Following the purchase, the insider owned 23,075,025 shares of the company’s stock, valued at $1,764,777,912. The trade was a 6.37% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have bought a total of 2,743,529 shares of company stock valued at $212,403,202 in the last three months. Corporate insiders own 10.05% of the company’s stock.

Hedge Funds Weigh In On Lennar

A number of institutional investors and hedge funds have recently bought and sold shares of the business. New Mexico Educational Retirement Board boosted its position in shares of Lennar by 1.0% during the fourth quarter. New Mexico Educational Retirement Board now owns 10,560 shares of the construction company’s stock worth $1,086,000 after buying an additional 100 shares during the period. KCM Investment Advisors LLC grew its stake in shares of Lennar by 1.3% during the 1st quarter. KCM Investment Advisors LLC now owns 9,879 shares of the construction company’s stock worth $858,000 after acquiring an additional 125 shares in the last quarter. Ritholtz Wealth Management lifted its position in shares of Lennar by 5.4% in the first quarter. Ritholtz Wealth Management now owns 2,926 shares of the construction company’s stock worth $254,000 after purchasing an additional 150 shares in the last quarter. Unison Advisors LLC grew its position in Lennar by 0.4% in the first quarter. Unison Advisors LLC now owns 37,815 shares of the construction company’s stock valued at $3,284,000 after purchasing an additional 154 shares in the last quarter. Finally, Wedmont Private Capital lifted its position in Lennar by 4.8% during the 2nd quarter. Wedmont Private Capital now owns 3,460 shares of the construction company’s stock worth $292,000 after buying an additional 157 shares in the last quarter. 81.10% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about 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.

About Lennar

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.