Stock Traders Purchase Large Volume of Lennar Put Options (NYSE:LEN)

Lennar Corporation (NYSE:LEN) was the recipient of unusually large options trading on Thursday. Stock investors purchased 7,075 put options on the company. This is an increase of 18% compared to the average volume of 6,008 put options.

Analysts Set New Price Targets

LEN has been the subject of several recent research reports. Barclays reduced their price objective on Lennar from $80.00 to $79.00 and set an “underweight” rating for the company in a research note on Monday, June 15th. Royal Bank Of Canada lowered their target price on shares of Lennar from $88.00 to $85.00 and set an “underperform” rating on the stock in a research note on Monday, June 15th. UBS Group reduced their target price on shares of Lennar from $107.00 to $94.00 and set a “neutral” rating for the company in a research report on Tuesday, June 16th. Bank of America decreased 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. Finally, The Goldman Sachs Group reaffirmed a “neutral” rating on shares of Lennar in a research note on Friday, June 5th. One analyst has rated the stock with a Buy rating, eight have given a Hold rating and ten have issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $92.13.

Lennar News Summary

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Local officials in Palm Bay, Florida, approved additional homes for Lennar’s Emerald Lakes development, supporting the company’s community pipeline and future sales opportunities. Palm Bay approves more homes for Emerald Lakes
• Positive Sentiment: Lennar celebrated the opening of The Park at Amberwood, a new community amenity that may improve the appeal and marketability of homes in the development, although the direct near-term financial impact is likely limited. Lennar Celebrates the Grand Opening of The Park at Amberwood
• Neutral Sentiment: Lennar is expected to report earnings Wednesday. Investors are focused on housing demand, orders, margins and cancellations ahead of the release. A report also noted that the shares were trading below book value before earnings, which could provide valuation support but also reflects concerns about profitability and growth. Lennar Expected to Announce Earnings
• Negative Sentiment: Clarksville, Tennessee, issued stop-work orders covering every active Lennar Homes permit after alleged city violations. Dozens of projects have reportedly been halted while Lennar works toward a resolution, creating potential construction delays, added costs, reputational damage and deferred revenue. Stop Work Order issued for every Lennar Homes active permit
• Negative Sentiment: Analysts expect Lennar’s upcoming earnings to decline, and Zacks said the company lacks the combination of factors typically associated with a likely earnings beat. That outlook increases the risk of disappointing guidance or further margin pressure. Analysts Estimate Lennar to Report a Decline in Earnings

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of LEN. Phillip James Consulting Co. purchased a new stake in shares of Lennar in the 1st quarter valued at approximately $30,000. DV Equities LLC purchased a new position in shares of Lennar during the 4th quarter worth approximately $31,000. Global Assets Advisory LLC acquired a new stake in Lennar in the 1st quarter valued at approximately $39,000. Quarry LP purchased a new stake in Lennar in the fourth quarter valued at approximately $41,000. Finally, IFC & Insurance Marketing Inc. acquired a new position in Lennar during the fourth quarter worth $45,000. Hedge funds and other institutional investors own 81.10% of the company’s stock.

Lennar Trading Down 4.1%

Shares of NYSE LEN traded down $3.30 during midday trading on Thursday, reaching $77.46. 1,913,000 shares of the stock were exchanged, compared to its average volume of 2,827,042. The stock has a market capitalization of $18.66 billion, a P/E ratio of 12.12, a PEG ratio of 2.69 and a beta of 1.39. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.91 and a current ratio of 4.91. The company has a 50 day simple moving average of $85.16 and a 200 day simple moving average of $90.02. Lennar has a twelve month low of $76.63 and a twelve month high of $140.71.

Lennar (NYSE:LEN) last issued its quarterly earnings data on Thursday, June 11th. The construction company reported $1.31 earnings per share 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 during the quarter, compared to analyst estimates of $8.08 billion. During the same period in the prior year, the business posted $1.81 earnings per share. The firm’s revenue for the quarter was down 5.2% compared to the same quarter last year. As a group, equities analysts expect that Lennar will post 5.46 earnings per share for the current year.

Lennar Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Friday, July 10th. Lennar’s dividend payout ratio (DPR) is presently 31.30%.

Lennar Company Profile

Lennar Corporation is one of the largest homebuilders in the United States. Founded in 1954 and headquartered in Miami, Florida, the company designs, constructs, and sells single-family homes and communities for a range of buyers, including first-time, move-up, and active-adult purchasers.

Lennar operates across many of the country’s major housing markets, including communities in the West, Southwest, Southeast, Mid-Atlantic, and other metropolitan areas. Its homebuilding operations offer a variety of floor plans and home designs, while the company also develops residential communities and provides related services such as mortgage financing, title, and closing services through its financial-services businesses.

In addition to traditional homebuilding, Lennar has expanded into multifamily development and other residential real-estate activities.