Lennar Corporation (LEN) Downgraded to “Hold” at Zacks Investment Research
Zacks Investment Research downgraded shares of Lennar Corporation (NYSE:LEN) from a buy rating to a hold rating in a research note released on Monday morning.
According to Zacks, “Lennar is one of the best-positioned homebuilders to capitalize on the housing recovery, courtesy of the diverse revenue mix, steady top-line performance, above-average order growth and improving SG&A leverage. Moreover, the company’s ancillary platforms — Rialto, Multi-Family, FivePoint and Financial Services — are evolving and should improve further. Lennar remains focused on continued improvement in the SG&A line from operating leverage and investments in technology. Also, the acquisition of WCI Communities is expected to generate strong gross margin given its portfolio of high quality, low cost land and 51 communities. Meanwhile, Lennar's shares underperformed the industry over the last three months and earnings estimate revisions have been mixed in the last seven days. However, labor shortages, rising land and labor costs as well as interest rate can keep the housing momentum in check going forward.”
Several other equities research analysts also recently issued reports on LEN. Wedbush reiterated a neutral rating and issued a $46.00 price objective on shares of Lennar Corporation in a report on Thursday, June 15th. BidaskClub downgraded Lennar Corporation from a buy rating to a hold rating in a report on Tuesday, June 20th. Royal Bank Of Canada boosted their price objective on Lennar Corporation from $60.00 to $61.00 and gave the company an outperform rating in a report on Wednesday, June 21st. Bank of America Corporation reiterated a buy rating and issued a $63.00 price objective (up previously from $60.00) on shares of Lennar Corporation in a report on Wednesday, June 21st. Finally, Credit Suisse Group started coverage on Lennar Corporation in a report on Thursday, June 22nd. They issued a neutral rating and a $55.00 price objective on the stock. One analyst has rated the stock with a sell rating, ten have given a hold rating, eight have assigned a buy rating and two have given a strong buy rating to the company. Lennar Corporation has an average rating of Buy and a consensus target price of $56.82.
Lennar Corporation (LEN) opened at 51.70 on Monday. The stock’s 50 day moving average price is $52.24 and its 200-day moving average price is $52.01. Lennar Corporation has a 52-week low of $39.68 and a 52-week high of $55.75. The company has a market cap of $12.12 billion, a P/E ratio of 15.11 and a beta of 1.24.
Lennar Corporation (NYSE:LEN) last posted its earnings results on Tuesday, June 20th. The construction company reported $0.91 EPS for the quarter, beating the Zacks’ consensus estimate of $0.78 by $0.13. Lennar Corporation had a return on equity of 12.57% and a net margin of 6.78%. The company had revenue of $3.26 billion for the quarter, compared to the consensus estimate of $2.90 billion. During the same quarter in the previous year, the business earned $0.95 earnings per share. The company’s revenue for the quarter was up 18.8% on a year-over-year basis. On average, equities analysts predict that Lennar Corporation will post $3.82 earnings per share for the current fiscal year.
In other news, COO Jonathan M. Jaffe sold 20,000 shares of the company’s stock in a transaction dated Monday, July 3rd. The stock was sold at an average price of $53.17, for a total transaction of $1,063,400.00. Following the completion of the transaction, the chief operating officer now directly owns 139,433 shares of the company’s stock, valued at approximately $7,413,652.61. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 12.18% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the company. Alps Advisors Inc. boosted its position in shares of Lennar Corporation by 0.3% during the 2nd quarter. Alps Advisors Inc. now owns 9,280 shares of the construction company’s stock worth $495,000 after acquiring an additional 24 shares in the last quarter. QS Investors LLC boosted its position in shares of Lennar Corporation by 1.0% during the 2nd quarter. QS Investors LLC now owns 2,541 shares of the construction company’s stock worth $135,000 after acquiring an additional 25 shares in the last quarter. Fisher Asset Management LLC boosted its position in shares of Lennar Corporation by 0.7% during the 2nd quarter. Fisher Asset Management LLC now owns 4,052 shares of the construction company’s stock worth $216,000 after acquiring an additional 27 shares in the last quarter. Riverhead Capital Management LLC boosted its position in shares of Lennar Corporation by 0.4% during the 2nd quarter. Riverhead Capital Management LLC now owns 8,326 shares of the construction company’s stock worth $444,000 after acquiring an additional 36 shares in the last quarter. Finally, State of Alaska Department of Revenue boosted its position in shares of Lennar Corporation by 0.7% during the 2nd quarter. State of Alaska Department of Revenue now owns 6,157 shares of the construction company’s stock worth $328,000 after acquiring an additional 40 shares in the last quarter. 81.08% of the stock is owned by institutional investors and hedge funds.
About Lennar Corporation
Lennar Corporation is a provider of real estate related financial services, commercial real estate, investment management and finance company. The Company is a homebuilder that operates in various states. Its segments include Homebuilding East, Homebuilding Central, Homebuilding West, Lennar Financial Services, Rialto and Lennar Multifamily.
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