Lennar (NYSE:LEN) Sets New 1-Year Low on Disappointing Earnings

Lennar Co. (NYSE:LENGet Free Report)’s stock price hit a new 52-week low during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $135.21 and last traded at $140.29, with a volume of 1040813 shares. The stock had previously closed at $145.93.

The construction company reported $4.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.15 by ($0.12). Lennar had a return on equity of 15.47% and a net margin of 11.51%. The firm had revenue of $9.95 billion during the quarter, compared to analysts’ expectations of $10.06 billion. During the same period in the prior year, the company posted $4.82 earnings per share. The company’s revenue was down 9.3% compared to the same quarter last year.

Lennar Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 24th. Stockholders of record on Wednesday, October 9th were given a dividend of $0.50 per share. The ex-dividend date of this dividend was Wednesday, October 9th. This represents a $2.00 annualized dividend and a dividend yield of 1.45%. Lennar’s payout ratio is 13.25%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on LEN shares. Zelman & Associates raised Lennar from a “neutral” rating to an “outperform” rating in a report on Monday, September 23rd. Wells Fargo & Company decreased their target price on Lennar from $180.00 to $165.00 and set an “equal weight” rating on the stock in a research note on Tuesday. Keefe, Bruyette & Woods lowered their price target on Lennar from $210.00 to $170.00 and set an “outperform” rating on the stock in a report on Friday. Wedbush reaffirmed a “neutral” rating and set a $164.00 price objective on shares of Lennar in a report on Thursday. Finally, JMP Securities upped their target price on shares of Lennar from $170.00 to $210.00 and gave the stock a “market outperform” rating in a research report on Wednesday, September 25th. Two investment analysts have rated the stock with a sell rating, twelve have given a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, Lennar has an average rating of “Hold” and an average price target of $175.94.

Get Our Latest Stock Report on LEN

Insider Activity at Lennar

In related news, Director Jeffrey Sonnenfeld sold 17,500 shares of the stock in a transaction on Monday, October 28th. The stock was sold at an average price of $175.13, for a total transaction of $3,064,775.00. Following the sale, the director now owns 23,689 shares in the company, valued at approximately $4,148,654.57. This represents a 42.49 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 9.36% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Moors & Cabot Inc. boosted its stake in shares of Lennar by 2.2% during the 3rd quarter. Moors & Cabot Inc. now owns 3,075 shares of the construction company’s stock worth $577,000 after purchasing an additional 66 shares during the period. Centaurus Financial Inc. boosted its position in shares of Lennar by 2.5% during the third quarter. Centaurus Financial Inc. now owns 2,937 shares of the construction company’s stock valued at $551,000 after buying an additional 71 shares during the period. Quotient Wealth Partners LLC grew its stake in shares of Lennar by 5.0% during the second quarter. Quotient Wealth Partners LLC now owns 1,540 shares of the construction company’s stock valued at $231,000 after buying an additional 74 shares during the last quarter. Commerce Bank raised its holdings in shares of Lennar by 0.5% in the third quarter. Commerce Bank now owns 15,074 shares of the construction company’s stock worth $2,826,000 after buying an additional 74 shares during the period. Finally, Jupiter Wealth Management LLC lifted its stake in shares of Lennar by 1.0% during the 3rd quarter. Jupiter Wealth Management LLC now owns 7,667 shares of the construction company’s stock worth $1,437,000 after acquiring an additional 75 shares during the last quarter. Institutional investors own 81.10% of the company’s stock.

Lennar Trading Down 0.2 %

The stock has a fifty day moving average of $168.98 and a 200-day moving average of $169.43. The company has a market cap of $37.45 billion, a PE ratio of 9.14, a PEG ratio of 1.31 and a beta of 1.61. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.98 and a current ratio of 4.90.

About Lennar

(Get Free Report)

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.

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