Lennar (NYSE:LEN) Issues Quarterly Earnings Results, Beats Expectations By $0.39 EPS

Lennar (NYSE:LEN) issued its quarterly earnings results on Friday. The construction company reported $3.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.52 by $0.39, Briefing.com reports. Lennar had a return on equity of 18.27% and a net margin of 12.66%. The company had revenue of $8.73 billion for the quarter, compared to analysts’ expectations of $8.49 billion. During the same period last year, the firm earned $5.18 EPS. The firm’s revenue for the quarter was down 2.3% on a year-over-year basis. Lennar updated its Q4 guidance to $4.40-4.75 EPS and its Q4 2023 guidance to $4.40-$4.75 EPS.

Lennar Trading Down 2.5 %

NYSE:LEN opened at $114.76 on Monday. The company has a debt-to-equity ratio of 0.15, a current ratio of 7.09 and a quick ratio of 1.25. The firm has a 50-day moving average of $122.48 and a 200-day moving average of $114.64. The company has a market cap of $32.98 billion, a PE ratio of 7.83, a PEG ratio of 1.53 and a beta of 1.48. Lennar has a one year low of $69.90 and a one year high of $133.24.

Lennar Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 21st. Investors of record on Friday, July 7th were paid a dividend of $0.375 per share. This represents a $1.50 dividend on an annualized basis and a yield of 1.31%. The ex-dividend date of this dividend was Thursday, July 6th. Lennar’s dividend payout ratio is presently 10.24%.

Wall Street Analyst Weigh In

LEN has been the subject of several recent analyst reports. UBS Group raised their target price on Lennar from $127.00 to $150.00 in a research report on Friday, June 16th. Raymond James upgraded Lennar from a “market perform” rating to an “outperform” rating and set a $150.00 price objective on the stock in a research note on Friday, July 14th. Deutsche Bank Aktiengesellschaft assumed coverage on Lennar in a research note on Wednesday, May 31st. They set a “sell” rating and a $105.00 price target on the stock. JMP Securities boosted their price target on Lennar from $115.00 to $135.00 in a research note on Friday, June 16th. Finally, Citigroup decreased their price objective on Lennar from $148.00 to $139.00 and set a “buy” rating on the stock in a report on Monday, September 11th. Two analysts have rated the stock with a sell rating, six have issued a hold rating and ten have given a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $127.56.

Insider Buying and Selling

In other Lennar news, Director Amy Banse acquired 859 shares of the business’s stock in a transaction that occurred on Thursday, August 17th. The stock was bought at an average cost of $117.65 per share, with a total value of $101,061.35. Following the acquisition, the director now owns 8,972 shares in the company, valued at $1,055,555.80. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In related news, CFO Diane J. Bessette sold 10,790 shares of Lennar stock in a transaction dated Thursday, June 22nd. The shares were sold at an average price of $121.46, for a total transaction of $1,310,553.40. Following the completion of the transaction, the chief financial officer now directly owns 270,556 shares of the company’s stock, valued at approximately $32,861,731.76. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Amy Banse purchased 859 shares of the stock in a transaction that occurred on Thursday, August 17th. The shares were acquired at an average cost of $117.65 per share, with a total value of $101,061.35. Following the completion of the transaction, the director now owns 8,972 shares in the company, valued at $1,055,555.80. The disclosure for this purchase can be found here. Over the last ninety days, insiders have bought 2,634 shares of company stock worth $321,855. 9.53% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Orion Portfolio Solutions LLC raised its holdings in shares of Lennar by 315.2% during the second quarter. Orion Portfolio Solutions LLC now owns 18,316 shares of the construction company’s stock valued at $2,295,000 after purchasing an additional 13,905 shares during the last quarter. Coppell Advisory Solutions LLC bought a new stake in Lennar during the second quarter valued at approximately $46,000. GTS Securities LLC bought a new stake in Lennar during the second quarter valued at approximately $842,000. National Pension Service grew its position in Lennar by 2.8% during the second quarter. National Pension Service now owns 403,964 shares of the construction company’s stock valued at $50,003,000 after buying an additional 11,011 shares during the period. Finally, Raymond James Trust N.A. boosted its position in shares of Lennar by 2.3% in the second quarter. Raymond James Trust N.A. now owns 4,144 shares of the construction company’s stock worth $520,000 after purchasing an additional 93 shares during the period. 79.87% of the stock is owned by hedge funds and other institutional investors.

Lennar Company Profile

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company's 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; and development, construction, and management of multifamily rental properties.