Zacks Investment Research downgraded shares of Lennar (NYSE:LEN) from a hold rating to a sell rating in a report released on Monday.
According to Zacks, “Shares of Lennar have underperformed its industry in the past six months. Estimates have also been trending downward over the past two months, limiting the stock’s upside potential. The downside was primarily due to its weak 2019 guidance for gross margin and a deceleration in growth (in mid-single digits) in 2020. Again, rising land and labor costs are threatening margins as they limit homebuilders’ pricing power. Moreover, ongoing housing market headwinds have impacted the homebuilding industry performance as a whole. Nonetheless, Lennar remains well poised to gain from the diverse revenue mix, steady top-line performance, above-average order growth and improving SG&A leverage. SG&A expenses, as a percentage of revenues from home sales, contracted 70 bps the first nine months of 2018.”
Several other equities research analysts have also issued reports on the company. Wedbush raised Lennar from a neutral rating to an outperform rating and decreased their target price for the company from $56.00 to $50.00 in a research report on Monday, October 29th. JMP Securities restated an outperform rating on shares of Lennar in a research note on Monday, October 8th. Bank of America set a $74.00 price target on Lennar and gave the company a buy rating in a research report on Thursday, October 11th. Barclays set a $55.00 price target on Lennar and gave the company a buy rating in a research report on Wednesday, December 12th. Finally, Credit Suisse Group reissued a neutral rating and set a $45.00 price objective (down from $55.00) on shares of Lennar in a report on Wednesday, October 17th. Two research analysts have rated the stock with a sell rating, one has issued a hold rating and seventeen have given a buy rating to the company. The stock presently has a consensus rating of Buy and an average price target of $61.00.
Lennar (NYSE:LEN) last posted its quarterly earnings results on Wednesday, January 9th. The construction company reported $1.96 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.91 by $0.05. Lennar had a return on equity of 14.02% and a net margin of 8.24%. The firm had revenue of $6.46 billion for the quarter, compared to analysts’ expectations of $6.46 billion. During the same period in the prior year, the business earned $1.29 EPS. The company’s revenue for the quarter was up 70.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Lennar will post 6.45 EPS for the current fiscal year.
In other Lennar news, COO Jonathan M. Jaffe sold 20,000 shares of Lennar stock in a transaction dated Wednesday, January 2nd. The stock was sold at an average price of $40.03, for a total transaction of $800,600.00. Following the completion of the transaction, the chief operating officer now owns 171,014 shares in the company, valued at approximately $6,845,690.42. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 8.50% of the company’s stock.
Several institutional investors have recently made changes to their positions in the stock. Belpointe Asset Management LLC increased its stake in shares of Lennar by 14.5% in the 3rd quarter. Belpointe Asset Management LLC now owns 6,306 shares of the construction company’s stock valued at $294,000 after purchasing an additional 797 shares in the last quarter. Brown Advisory Inc. increased its stake in shares of Lennar by 16.1% in the 2nd quarter. Brown Advisory Inc. now owns 6,999 shares of the construction company’s stock valued at $368,000 after purchasing an additional 972 shares in the last quarter. Nissay Asset Management Corp Japan ADV increased its stake in shares of Lennar by 2.6% in the 3rd quarter. Nissay Asset Management Corp Japan ADV now owns 49,707 shares of the construction company’s stock valued at $2,321,000 after purchasing an additional 1,262 shares in the last quarter. Capital Analysts LLC increased its stake in shares of Lennar by 7.3% in the 3rd quarter. Capital Analysts LLC now owns 20,650 shares of the construction company’s stock valued at $964,000 after purchasing an additional 1,412 shares in the last quarter. Finally, Global X Management Co LLC increased its stake in shares of Lennar by 20.7% in the 2nd quarter. Global X Management Co LLC now owns 8,671 shares of the construction company’s stock valued at $455,000 after purchasing an additional 1,486 shares in the last quarter. Hedge funds and other institutional investors own 84.53% of the company’s stock.
Lennar Company Profile
Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. The company operates through Homebuilding East, Homebuilding Central, Homebuilding West, Lennar Financial Services, Rialto, and Lennar Multifamily segments. Its homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land.
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