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

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

Several other equities research analysts have also recently weighed in on the stock. Truist Financial lowered their price target on shares of Lennar from $95.00 to $90.00 and set a “hold” rating for the company in a research report on Tuesday, March 31st. UBS Group cut their price target on shares of Lennar from $107.00 to $94.00 and set a “neutral” rating on the stock in a research note on Tuesday. Bank of America cut their price target on shares of Lennar from $84.00 to $77.00 and set an “underperform” rating on the stock in a research note on Friday, June 12th. Barclays cut their price objective on shares of Lennar from $80.00 to $79.00 and set an “underweight” rating on the stock in a research note on Monday. Finally, Argus cut their price objective on shares of Lennar from $140.00 to $125.00 and set a “buy” rating on the stock in a research note on Wednesday, April 15th. One investment analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and ten have issued a Sell rating to the stock. Based on data from MarketBeat.com, Lennar presently has an average rating of “Reduce” and an average price target of $95.00.

Lennar Stock Performance

Lennar stock opened at $86.42 on Tuesday. The company’s 50-day moving average price is $89.47 and its 200-day moving average price is $102.32. Lennar has a twelve month low of $81.18 and a twelve month high of $144.24. The company has a quick ratio of 0.91, a current ratio of 4.91 and a debt-to-equity ratio of 0.19. The company has a market cap of $21.34 billion, a PE ratio of 13.52, a price-to-earnings-growth ratio of 2.97 and a beta of 1.39.

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

Institutional Investors Weigh In On Lennar

Institutional investors have recently made changes to their positions in the stock. KERR FINANCIAL PLANNING Corp acquired a new position in shares of Lennar in the third quarter valued at approximately $25,000. Redmont Wealth Advisors LLC purchased a new stake in shares of Lennar during the 3rd quarter worth approximately $26,000. Phillip James Consulting Co. purchased a new stake in shares of Lennar during the 1st quarter worth approximately $30,000. High Point Wealth Management LLC purchased a new stake in shares of Lennar during the 4th quarter worth approximately $31,000. Finally, DV Equities LLC purchased a new stake in Lennar in the 4th quarter valued at $31,000. 81.10% of the stock is currently owned by institutional investors and hedge funds.

Lennar News Roundup

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

About Lennar

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.