Lennar (NYSE:LEN) Downgraded to Strong Sell Rating by Zacks Research

Lennar (NYSE:LEN) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Tuesday,Zacks.com reports.

A number of other research firms have also weighed in on LEN. UBS Group dropped their target price on shares of Lennar from $107.00 to $94.00 and set a “neutral” rating for the company in a report on Tuesday. Wells Fargo & Company dropped their target price on shares of Lennar from $90.00 to $85.00 and set an “equal weight” rating for the company in a report on Monday. The Goldman Sachs Group restated a “neutral” rating on shares of Lennar in a report on Friday, June 5th. Truist Financial lowered their price objective on shares of Lennar from $95.00 to $90.00 and set a “hold” rating for the company in a report on Tuesday, March 31st. Finally, BTIG Research set a $67.00 price objective on shares of Lennar in a report on Monday. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and ten have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Lennar currently has a consensus rating of “Reduce” and an average target price of $95.00.

Lennar Stock Performance

NYSE LEN opened at $86.42 on Tuesday. The company has a 50-day simple moving average of $89.47 and a two-hundred day simple moving average of $102.32. The company has a quick ratio of 0.91, a current ratio of 4.91 and a debt-to-equity ratio of 0.19. Lennar has a 12-month low of $81.18 and a 12-month high of $144.24. The firm has a market cap of $21.34 billion, a price-to-earnings ratio of 13.52, a PEG ratio of 2.97 and a beta of 1.39.

Lennar (NYSE:LEN) last posted its quarterly earnings results on Thursday, June 11th. The construction company reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.24 by $0.07. Lennar had a net margin of 4.93% and a return on equity of 7.08%. The business had revenue of $7.94 billion during the quarter, compared to analyst estimates of $8.08 billion. During the same period in the prior year, the business posted $1.81 earnings per share. The company’s revenue was down 5.2% on a year-over-year basis. On average, equities analysts forecast that Lennar will post 5.53 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Brighton Jones LLC increased its holdings in Lennar by 27.9% in the 4th quarter. Brighton Jones LLC now owns 1,727 shares of the construction company’s stock valued at $236,000 after acquiring an additional 377 shares during the last quarter. Intech Investment Management LLC increased its holdings in Lennar by 29.8% in the 1st quarter. Intech Investment Management LLC now owns 13,840 shares of the construction company’s stock valued at $1,589,000 after acquiring an additional 3,177 shares during the last quarter. Jump Financial LLC increased its holdings in Lennar by 15.0% in the 2nd quarter. Jump Financial LLC now owns 25,622 shares of the construction company’s stock valued at $2,834,000 after acquiring an additional 3,345 shares during the last quarter. Cary Street Partners Financial LLC bought a new stake in Lennar in the 2nd quarter valued at $47,000. Finally, Daiwa Securities Group Inc. increased its holdings in Lennar by 4.6% in the 2nd quarter. Daiwa Securities Group Inc. now owns 34,958 shares of the construction company’s stock valued at $3,867,000 after acquiring an additional 1,544 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: Lennar is still focusing on operational execution, including higher deliveries, faster build times, and technology investments, which could help support volume even in a tough housing market. Article Title
• Neutral Sentiment: The company is getting some attention for a new attached-home community in Santa Clarita, another sign Lennar is leaning into product mix and community expansion. Article Title
• Neutral Sentiment: Some investors and commentators are debating whether Lennar’s pullback has created a value opportunity, since the stock now looks cheaper on valuation metrics. Article Title
• Negative Sentiment: Wall Street sentiment has turned more cautious, with Keefe, Bruyette & Woods and JPMorgan both lowering price targets and maintaining bearish ratings, reinforcing concern about downside risk. Article Title Article Title
• Negative Sentiment: Recent reports highlight stretched affordability, heavy incentives per home, falling sales prices, and tight margins, suggesting Lennar may need to keep discounting to sustain demand. Article Title Article Title
• Negative Sentiment: Analysts also warn that Lennar’s recent earnings trends, estimate cuts, and broader housing-sector headwinds could make the stock look more like a value trap than a bargain. Article Title Article Title

Lennar Company Profile

Lennar Corporation (NYSE: LEN) is a U.S.-based homebuilder and real estate company that designs, constructs and sells residential housing. The company offers a range of product types including single-family detached homes, townhomes and condominiums, serving buyers from entry-level and first-time purchasers to move-up, active-adult and luxury segments. Lennar also develops master-planned communities and manages land acquisition and entitlement activities that support its homebuilding operations.

In addition to home construction and sales, Lennar provides a suite of ancillary services intended to streamline the purchase process and capture additional value.