Lennar Corporation (NYSE:LEN) Stock Has Average Price Target of $81.00

Shares of Lennar Corporation (NYSE:LEN) have received an average recommendation of “Reduce” from the eighteen analysts that are currently covering the company, MarketBeat reports. Ten analysts have rated the stock with a sell rating, seven have given a hold rating and one has assigned a buy rating to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $79.86.

LEN has been the topic of several research analyst reports. BTIG Research reissued a “sell” rating and issued a $63.00 price objective on shares of Lennar in a research report on Friday, September 18th. Bank of America lowered their target price on Lennar from $77.00 to $70.00 and set an “underperform” rating on the stock in a research note on Monday, September 14th. Keefe, Bruyette & Woods cut their price target on shares of Lennar from $85.00 to $75.00 and set an “underperform” rating on the stock in a report on Tuesday, September 22nd. The Goldman Sachs Group restated a “neutral” rating on shares of Lennar in a research report on Friday, June 5th. Finally, Benchmark upgraded shares of Lennar to a “hold” rating in a report on Thursday, September 3rd.

Insider Activity at Lennar

In other news, major shareholder Berkshire Hathaway Inc acquired 642,821 shares of the company’s stock in a transaction that occurred on Wednesday, September 30th. The shares were acquired at an average price of $81.58 per share, for a total transaction of $52,441,337.18. Following the completion of the purchase, the insider owned 26,034,436 shares in the company, valued at approximately $2,123,889,288.88. This trade represents a 2.53% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Over the last quarter, insiders have purchased 5,083,639 shares of company stock valued at $402,669,384. Insiders own 10.05% of the company’s stock.

Institutional Trading of Lennar

Several hedge funds have recently made changes to their positions in LEN. Phillip James Consulting Co. bought a new position in shares of Lennar during the 1st quarter worth $30,000. Global Assets Advisory LLC bought a new stake in Lennar in the 1st quarter valued at about $39,000. Anchor Investment Management LLC lifted its holdings in Lennar by 1,276.4% during the second quarter. Anchor Investment Management LLC now owns 757 shares of the construction company’s stock valued at $69,000 after purchasing an additional 702 shares during the last quarter. Elevation Wealth Partners LLC lifted its holdings in Lennar by 1,272.4% during the second quarter. Elevation Wealth Partners LLC now owns 796 shares of the construction company’s stock valued at $72,000 after purchasing an additional 738 shares during the last quarter. Finally, Western Wealth Management LLC bought a new position in Lennar during the first quarter worth about $83,000. 81.10% of the stock is currently owned by institutional investors.

Trending Headlines about Lennar

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway made another sizable investment: Berkshire purchased 642,821 Lennar shares for approximately $52.4 million on September 30, following additional purchases on September 28 and 29. Its position grew to more than 26 million shares, valued at roughly $2.1 billion, or about 11% of Lennar. The repeated buying near recent lows may support investor confidence in Lennar’s long-term value. SEC ownership filing
• Positive Sentiment: Housing exposure could have strategic value: Coverage highlighted Berkshire’s broader housing interests, including Clayton Homes, which may reinforce the rationale for accumulating Lennar shares and frame the investment as a long-term housing-sector bet. Berkshire Hathaway Keeps Buying More Lennar Stock
• Neutral Sentiment: Dividend provides some shareholder support: Lennar declared a quarterly dividend of $0.50, equivalent to $2.00 annually and a yield of approximately 2.4%. The dividend is a modest positive for income-focused investors but does not resolve the company’s earnings challenges.
• Negative Sentiment: Earnings and revenue missed expectations: Lennar reported quarterly EPS of $1.23 versus the $1.29 consensus estimate, while revenue of $8.05 billion fell short of the $8.32 billion forecast. Revenue declined 8.7% year over year, and EPS dropped from $2.29 in the comparable period, pointing to continued housing-market pressure.
• Negative Sentiment: Margins remain under pressure: Although Lennar reduced construction costs, margin performance lagged, raising concerns that lower costs are not fully offsetting weaker demand, pricing pressure and broader housing headwinds. Lennar Cut Build Costs, but Margins Lagged
• Negative Sentiment: Wall Street remains cautious: Lennar carries a consensus “Reduce” rating, with an average price target near $81 and several recent sell or underperform ratings. This suggests analysts see limited upside unless housing demand and profitability improve.

Lennar Price Performance

Lennar stock opened at $82.19 on Tuesday. Lennar has a 52 week low of $75.70 and a 52 week high of $133.76. The company’s 50 day moving average price is $83.83 and its two-hundred day moving average price is $87.12. The stock has a market cap of $19.80 billion, a P/E ratio of 15.54, a P/E/G ratio of 3.08 and a beta of 1.36. The company has a quick ratio of 0.69, a current ratio of 4.94 and a debt-to-equity ratio of 0.20.

Lennar (NYSE:LEN) last released its earnings results on Wednesday, September 16th. The construction company reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). The business 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%. The business’s revenue was down 8.7% on a year-over-year basis. During the same period in the prior year, the company earned $2.29 earnings per share. On average, equities analysts predict 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. Stockholders of record on Wednesday, October 7th will be paid a dividend of $0.50 per share. The ex-dividend date is Wednesday, October 7th. This represents a $2.00 annualized dividend and a dividend yield of 2.4%. Lennar’s dividend payout ratio (DPR) is presently 37.81%.

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.