Zacks Research Downgrades Lennar (NYSE:LEN) to Strong Sell

Lennar (NYSE:LEN) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Thursday,Zacks.com reports. Zacks Research also issued estimates for Lennar’s Q1 2026 earnings at $1.04 EPS, Q2 2026 earnings at $1.30 EPS, Q3 2026 earnings at $1.78 EPS, Q4 2026 earnings at $2.03 EPS, FY2026 earnings at $6.14 EPS, Q1 2027 earnings at $0.85 EPS, Q2 2027 earnings at $1.88 EPS, Q3 2027 earnings at $2.68 EPS, Q4 2027 earnings at $3.00 EPS, FY2027 earnings at $8.42 EPS and FY2028 earnings at $10.17 EPS.

Several other equities research analysts have also issued reports on the company. JPMorgan Chase & Co. decreased their target price on Lennar from $115.00 to $80.00 and set an “underweight” rating for the company in a research report on Thursday, December 18th. Bank of America restated an “underperform” rating and set a $95.00 price objective (down previously from $125.00) on shares of Lennar in a report on Thursday, December 18th. UBS Group cut shares of Lennar from a “buy” rating to a “neutral” rating and dropped their target price for the company from $137.00 to $122.00 in a research note on Tuesday. BTIG Research set a $90.00 price target on shares of Lennar in a research note on Thursday, December 18th. Finally, The Goldman Sachs Group reiterated a “neutral” rating and issued a $120.00 price objective on shares of Lennar in a research note on Thursday, December 18th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, nine have issued a Hold rating and eight have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Lennar presently has a consensus rating of “Reduce” and a consensus price target of $106.00.

Lennar Trading Up 8.6%

NYSE:LEN opened at $118.92 on Thursday. Lennar has a 52 week low of $98.42 and a 52 week high of $144.24. The firm has a 50-day moving average price of $116.95 and a two-hundred day moving average price of $121.24. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.36 and a current ratio of 4.89. The firm has a market cap of $30.33 billion, a price-to-earnings ratio of 14.88, a price-to-earnings-growth ratio of 1.26 and a beta of 1.42.

Lennar (NYSE:LEN) last released its earnings results on Tuesday, December 16th. The construction company reported $2.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.30 by ($0.27). The business had revenue of $9.37 billion during the quarter, compared to the consensus estimate of $9.17 billion. Lennar had a net margin of 6.08% and a return on equity of 9.27%. The business’s revenue was down 5.8% on a year-over-year basis. During the same period in the prior year, the company earned $4.03 earnings per share. On average, equities analysts expect that Lennar will post 12.48 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Lennar

Several institutional investors have recently made changes to their positions in LEN. Guerra Advisors Inc purchased a new position in shares of Lennar in the third quarter valued at $25,000. Redmont Wealth Advisors LLC purchased a new position in Lennar during the 3rd quarter valued at about $26,000. KERR FINANCIAL PLANNING Corp bought a new stake in shares of Lennar during the third quarter valued at about $25,000. FNY Investment Advisers LLC purchased a new stake in shares of Lennar in the second quarter worth about $33,000. Finally, Rexford Capital Inc. bought a new position in shares of Lennar in the second quarter valued at approximately $36,000. Hedge funds and other institutional investors own 81.10% of the company’s stock.

Trending Headlines about Lennar

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Shares rose today on heavy volume, indicating buying interest that outweighed the negative analyst headlines (volume above average; technicals show price above the 50‑day SMA).
• Neutral Sentiment: Zacks published a FY2028 EPS projection of $10.17 for Lennar, signaling a longer‑range recovery expectation even as nearer‑term estimates were cut.
• Neutral Sentiment: Citizens / JMP reaffirmed a Market Perform (neutral) rating on LEN. Citizens Jmp Reaffirms Market Perform Rating for Lennar (NYSE:LEN)
• Neutral Sentiment: TPG’s acquisition of a majority interest in Quarterra was reported; this is industry‑level M&A news that may indirectly affect builder sentiment in certain markets but has no direct confirmed impact on Lennar. TPG Buys Majority Interest in Quarterra
• Negative Sentiment: Zacks cut Lennar’s near‑term and medium‑term EPS forecasts across multiple quarters and fiscal years (examples: FY2026 cut roughly to $6.14 from prior ~ $8.77; FY2027 cut to $8.42 from ~$10.11; several quarterly downgrades). Zacks kept a “Hold” rating — the cuts reduce near‑term earnings visibility and are a clear negative for consensus‑driven valuation.
• Negative Sentiment: Major sell‑side moves: Citigroup trimmed its price target to $113 and kept a neutral view (reported via Benzinga), and Wells Fargo lowered its target to $105 — both put downward pressure on sentiment. Citigroup price target cut reported at Benzinga Wells Fargo Lowers Lennar Price Target
• Negative Sentiment: Coverage notes after Lennar’s Q4 showing: some outlets and analysts moved LEN to market‑perform/neutral following an “underwhelming” quarter (Citizens/MSN coverage), reinforcing cautious sentiment. Lennar lowered to market perform at Citizens after underwhelming Q4

Lennar Company Profile

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.