Lennar Co. (LEN) Downgraded by Zacks Investment Research to Hold
Lennar Co. (NYSE:LEN) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “The first quarter of fiscal 2017 saw Lennar beat on both counts for the fifth quarter in a row. Although its quarterly earnings remained subdued due to WCI acquisition-related expenses, its core homebuilding remain solid driven by strong revenues and improved SG&A leverage. Revenues grew 17% year over year buoyed by higher deliveries. The company is one of the best-positioned homebuilders to capitalize on the housing recovery, courtesy of the diverse revenue mix, steady top-line performance, above-average order growth and improving SG&A leverage. Moreover, the company’s ancillary platforms — Rialto, Multi-Family, FivePoint and Financial Services — are evolving and should improve further. Lennar shares have also outperformed the broader industry so far this year. However, labor shortage and gross margin compression due to rising land and labor costs might keep the housing momentum in check going forward.”
A number of other analysts have also recently commented on LEN. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Lennar in a research report on Thursday, April 6th. Barclays PLC lifted their target price on Lennar from $51.00 to $56.00 and gave the stock an “overweight” rating in a research report on Tuesday, March 7th. BTIG Research began coverage on Lennar in a research report on Tuesday, February 7th. They set a “buy” rating and a $56.00 target price on the stock. Deutsche Bank AG cut their target price on Lennar from $52.00 to $49.00 and set a “hold” rating on the stock in a research report on Thursday, March 23rd. Finally, Royal Bank of Canada lifted their target price on Lennar from $53.00 to $60.00 and gave the stock an “outperform” rating in a research report on Wednesday, March 22nd. Eight equities research analysts have rated the stock with a hold rating, nine have assigned a buy rating and two have given a strong buy rating to the company’s stock. Lennar has an average rating of “Buy” and a consensus target price of $53.78.
Lennar (NYSE:LEN) traded up 0.181% during trading on Tuesday, hitting $52.445. The stock had a trading volume of 810,316 shares. Lennar has a 12-month low of $39.68 and a 12-month high of $53.79. The firm has a market cap of $12.30 billion, a P/E ratio of 15.171 and a beta of 1.27. The stock’s 50 day moving average price is $51.18 and its 200 day moving average price is $45.48.
Lennar (NYSE:LEN) last posted its earnings results on Tuesday, March 21st. The construction company reported $0.59 EPS for the quarter, topping the Zacks’ consensus estimate of $0.56 by $0.03. Lennar had a return on equity of 13.80% and a net margin of 8.33%. The business had revenue of $2.34 billion for the quarter, compared to analysts’ expectations of $2.18 billion. During the same quarter in the previous year, the firm earned $0.63 earnings per share. The business’s revenue was up 17.2% compared to the same quarter last year. On average, analysts anticipate that Lennar will post $3.82 EPS for the current fiscal year.
A number of institutional investors have recently added to or reduced their stakes in LEN. Sanders Capital LLC boosted its position in Lennar by 0.9% in the third quarter. Sanders Capital LLC now owns 8,511,852 shares of the construction company’s stock valued at $366,937,000 after buying an additional 76,400 shares during the last quarter. The Manufacturers Life Insurance Company acquired a new position in Lennar during the third quarter valued at about $304,677,000. Aristotle Capital Management LLC boosted its position in Lennar by 2.3% in the fourth quarter. Aristotle Capital Management LLC now owns 5,693,761 shares of the construction company’s stock valued at $244,432,000 after buying an additional 128,010 shares during the last quarter. Greenhaven Associates Inc. boosted its position in Lennar by 5.5% in the third quarter. Greenhaven Associates Inc. now owns 5,059,049 shares of the construction company’s stock valued at $214,200,000 after buying an additional 261,877 shares during the last quarter. Finally, TCW Group Inc. boosted its position in Lennar by 3.7% in the fourth quarter. TCW Group Inc. now owns 3,736,123 shares of the construction company’s stock valued at $160,392,000 after buying an additional 133,388 shares during the last quarter. Institutional investors own 79.04% of the company’s stock.
Lennar Corporation is a provider of real estate related financial services, commercial real estate, investment management and finance company. The Company is a homebuilder that operates in various states. Its segments include Homebuilding East, Homebuilding Central, Homebuilding West, Lennar Financial Services, Rialto and Lennar Multifamily.
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