Lennar (NYSE:LEN) Sets New 12-Month Low – Here’s Why

Shares of Lennar Corporation (NYSE:LEN) reached a new 52-week low during mid-day trading on Wednesday. The company traded as low as $73.57 and last traded at $73.7380, with a volume of 61,420 shares trading hands. The stock had previously closed at $74.92.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Zacks Research downgraded Lennar from a “hold” rating to a “strong sell” rating in a research report on Tuesday, June 16th. Bank of America reduced their price objective on shares of Lennar from $77.00 to $70.00 and set an “underperform” rating for the company in a report on Monday, September 14th. Wells Fargo & Company lowered their price objective on shares of Lennar from $80.00 to $75.00 and set an “equal weight” rating on the stock in a research note on Wednesday, October 7th. Seaport Research Partners lowered their price target on Lennar from $74.00 to $70.00 and set a “sell” rating on the stock in a research report on Monday, September 21st. Finally, Barclays cut their price objective on Lennar from $79.00 to $70.00 and set an “underweight” rating for the company in a report on Friday, September 18th. One investment analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and ten have given a Sell rating to the company. Based on data from MarketBeat.com, Lennar presently has a consensus rating of “Reduce” and an average target price of $79.00.

Lennar Price Performance

The company has a debt-to-equity ratio of 0.20, a current ratio of 4.94 and a quick ratio of 0.69. The firm has a market cap of $17.27 billion, a price-to-earnings ratio of 13.72, a price-to-earnings-growth ratio of 2.81 and a beta of 1.36. The stock’s fifty day moving average price is $82.44 and its 200-day moving average price is $86.15.

Lennar (NYSE:LEN) last posted its quarterly earnings results on Wednesday, September 16th. The construction company reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.06). Lennar had a net margin of 4.09% and a return on equity of 6.15%. The business had revenue of $8.05 billion for the quarter, compared to analyst estimates of $8.32 billion. During the same period in the previous year, the firm posted $2.00 earnings per share. The firm’s quarterly revenue was down 8.7% on a year-over-year basis. Equities research analysts predict that Lennar Corporation will post 4.87 EPS for the current fiscal year.

Lennar Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 22nd. Investors of record on Wednesday, October 7th will be issued a $0.50 dividend. This represents a $2.00 annualized dividend and a yield of 2.8%. The ex-dividend date is Wednesday, October 7th. Lennar’s dividend payout ratio (DPR) is 37.81%.

Insider Buying and Selling

In other news, major shareholder Berkshire Hathaway Inc purchased 1,708,095 shares of the business’s stock in a transaction on Friday, October 2nd. The stock was purchased at an average price of $79.44 per share, with a total value of $135,691,066.80. Following the acquisition, the insider directly owned 28,438,045 shares in the company, valued at approximately $2,259,118,294.80. The trade was a 6.39% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Over the last quarter, insiders purchased 7,502,276 shares of company stock valued at $595,303,287. Insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Lennar

Several large investors have recently made changes to their positions in LEN. Polaris Financial Partners acquired a new stake in Lennar during the third quarter worth approximately $27,000. Phillip James Consulting Co. bought a new stake in Lennar during the 1st quarter valued at $30,000. Global Assets Advisory LLC bought a new stake in Lennar during the first quarter worth $39,000. GK Wealth Management LLC purchased a new position in shares of Lennar in the 3rd quarter worth approximately $42,000. Finally, Anchor Investment Management LLC boosted its holdings in shares of Lennar by 1,276.4% in the 2nd quarter. Anchor Investment Management LLC now owns 757 shares of the construction company’s stock worth $69,000 after buying an additional 702 shares during the last quarter. Institutional investors own 81.10% of the company’s stock.

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.