Lennar (NYSE:LEN) Rating Lowered to Strong Sell at Zacks Research

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

LEN has been the topic of several other research reports. Barclays dropped their target price on Lennar from $80.00 to $79.00 and set an “underweight” rating on the stock in a research report on Monday. Royal Bank Of Canada dropped their target price on Lennar from $88.00 to $85.00 and set an “underperform” rating on the stock in a research report on Monday. Evercore boosted their target price on Lennar from $82.00 to $87.00 and gave the stock an “underperform” rating in a research report on Monday. Keefe, Bruyette & Woods lowered their price target on Lennar from $86.00 to $85.00 and set an “underperform” rating on the stock in a report on Wednesday. Finally, Seaport Research Partners restated a “sell” rating and issued a $74.00 price target (down from $140.00) on shares of Lennar in a report on Tuesday, April 7th. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and ten have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Lennar has a consensus rating of “Reduce” and a consensus price target of $95.00.

Lennar Stock Performance

NYSE LEN opened at $86.42 on Tuesday. The company has a current ratio of 4.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.19. The business’s 50 day moving average is $89.47 and its two-hundred day moving average is $102.32. Lennar has a 12-month low of $81.18 and a 12-month high of $144.24. The stock has a market capitalization of $21.34 billion, a price-to-earnings ratio of 13.52, a PEG ratio of 2.97 and a beta of 1.39.

Lennar (NYSE:LEN) last released its earnings results on Thursday, June 11th. The construction company reported $1.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.24 by $0.07. Lennar had a return on equity of 7.08% and a net margin of 4.93%.The company had revenue of $7.94 billion for the quarter, compared to analysts’ expectations of $8.08 billion. During the same quarter in the previous year, the firm posted $1.81 EPS. The firm’s quarterly revenue was down 5.2% on a year-over-year basis. Research analysts expect that Lennar will post 5.53 EPS for the current year.

Institutional Investors Weigh In On Lennar

A number of large investors have recently bought and sold shares of LEN. KERR FINANCIAL PLANNING Corp acquired a new stake in Lennar during the 3rd quarter valued at $25,000. Redmont Wealth Advisors LLC acquired a new stake in Lennar during the 3rd quarter valued at $26,000. Phillip James Consulting Co. acquired a new stake in Lennar during the 1st quarter valued at $30,000. High Point Wealth Management LLC acquired a new stake in Lennar during the 4th quarter valued at $31,000. Finally, DV Equities LLC acquired a new stake in Lennar during the 4th quarter valued at $31,000. Institutional investors and hedge funds own 81.10% of the company’s stock.

Lennar News Summary

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.