Melius Research Initiates Coverage on Lennar (NYSE:LEN)

Research analysts at Melius Research began coverage on shares of Lennar (NYSE:LEN) in a research report issued on Tuesday, Marketbeat Ratings reports. The brokerage set a “sell” rating and a $72.00 price target on the construction company’s stock. Melius Research’s price objective would suggest a potential downside of 5.51% from the stock’s current price.

Other research analysts have also recently issued research reports about the company. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Lennar in a research note on Tuesday, September 8th. Argus set a $108.00 price target on Lennar in a research note on Thursday, July 9th. Citizens Jmp reaffirmed a “hold” rating on shares of Lennar in a research report on Thursday, September 17th. Morgan Stanley initiated coverage on Lennar in a research note on Thursday, October 1st. They issued an “underweight” rating and a $65.00 target price on the stock. Finally, Benchmark upgraded Lennar to a “hold” rating in a research report on Thursday, September 3rd. One research analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and ten have given a Sell rating to the stock. According to data from MarketBeat.com, Lennar currently has an average rating of “Reduce” and an average target price of $79.00.

Lennar Price Performance

LEN stock opened at $76.20 on Tuesday. The stock has a market cap of $18.36 billion, a PE ratio of 14.40, a P/E/G ratio of 2.91 and a beta of 1.36. Lennar has a 12 month low of $73.75 and a 12 month high of $133.76. The company has a 50-day moving average price of $83.14 and a 200 day moving average price of $86.60. The company has a current ratio of 4.94, a quick ratio of 0.69 and a debt-to-equity ratio of 0.20.

Lennar (NYSE:LEN) last posted its quarterly earnings data on Wednesday, September 16th. The construction company reported $1.23 earnings per share for the quarter, missing analysts’ consensus estimates 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%.The business’s revenue for the quarter was down 8.7% compared to the same quarter last year. During the same period last year, the company earned $2.00 earnings per share. Equities research analysts anticipate that Lennar will post 4.87 earnings per share for the current year.

Insider Activity

In other news, major shareholder Berkshire Hathaway Inc purchased 1,708,095 shares of the business’s stock in a transaction dated Friday, October 2nd. The shares were purchased at an average price of $79.44 per share, for a total transaction of $135,691,066.80. Following the completion of the purchase, the insider owned 28,438,045 shares in the company, valued at approximately $2,259,118,294.80. This represents a 6.39% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Over the last 90 days, insiders acquired 7,502,276 shares of company stock worth $595,303,287. 10.05% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in LEN. KCM Investment Advisors LLC boosted its position in 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 during the period. Ritholtz Wealth Management increased its holdings in shares of Lennar by 5.4% in the 1st quarter. Ritholtz Wealth Management now owns 2,926 shares of the construction company’s stock valued at $254,000 after purchasing an additional 150 shares during the period. Unison Advisors LLC lifted its position in shares of Lennar by 0.4% in the first quarter. Unison Advisors LLC now owns 37,815 shares of the construction company’s stock worth $3,284,000 after purchasing an additional 154 shares in the last quarter. Wedmont Private Capital boosted its holdings in shares of Lennar by 4.8% during the second quarter. Wedmont Private Capital now owns 3,460 shares of the construction company’s stock worth $292,000 after purchasing an additional 157 shares during the period. Finally, New Mexico Educational Retirement Board grew its position in Lennar by 1.9% during the second quarter. New Mexico Educational Retirement Board now owns 10,760 shares of the construction company’s stock valued at $974,000 after purchasing an additional 200 shares in the last quarter. 81.10% of the stock is currently owned by institutional investors.

More Lennar News

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Berkshire Hathaway continued buying Lennar. Berkshire acquired more than 2.4 million Lennar shares in transactions disclosed for October 1 and 2, investing approximately $193 million. Its stake has risen to roughly 12%, signaling confidence in Lennar’s long-term valuation despite near-term housing weakness. Berkshire Buys More Lennar Stock
• Positive Sentiment: Valuation and volume-focused strategy could support the shares. Coverage highlighted that Lennar trades below book value, while the company is emphasizing higher home deliveries, lower costs and faster construction cycles to address affordability challenges. This strategy could protect demand, though it may come at the expense of margins. Lennar Volume Strategy
• Neutral Sentiment: Investor law firms announced investigations. Frank R. Cruz and Bragar Eagel & Squire said they are investigating potential federal securities-law violations following an October 2 Hunterbrook Media report. The announcements are not findings of wrongdoing, but they increase headline and litigation risk for Lennar. Lennar Securities Fraud Investigation
• Negative Sentiment: Mortgage rates are approaching 7.5%. Higher borrowing costs are worsening housing affordability and forcing builders to use incentives or accept lower margins to keep buyers engaged. Mortgage Rates Near 7.5 Percent
• Negative Sentiment: Analyst sentiment remains bearish. Melius Research initiated coverage with a Sell rating and a $72 price target, while the broader analyst consensus is Reduce. Lennar’s latest quarter also missed estimates, with EPS of $1.23 versus $1.29 expected and revenue down 8.7% year over year. Lennar Analyst Coverage

Lennar Company Profile

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.