Zacks Investment Research Lowers Lennar Corp. (LEN) to Sell
Lennar Corp. (NYSE:LEN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.
According to Zacks, “Lennar maintained its strong second-quarter performance in the third as well, beating the Zacks Consensus Estimate for both earnings and sales. Earnings increased 5.2% year over year driven by strong revenues and improved SG&A leverage. Revenues also grew 13.7% year over year buoyed by strong revenues. The company is one of the best positioned homebuilders to capitalize on the housing recovery, courtesy of the diverse revenue mix, steady top-line performance, above-average order growth and improving SG&A leverage. Moreover, the company’s ancillary platforms — Rialto, Multi-Family, FivePoint and Financial Services — are evolving and should improve further. However, labor shortage, gross margin compression due to rising land and labor costs and sales slowdown in Houston might keep the housing momentum in check in the remainder of 2016. Even, Lennar cut its gross margin forecast for the fourth quarter owing to rising costs.”
A number of other equities analysts also recently commented on the stock. Bank of America Corp. set a $52.00 price objective on shares of Lennar Corp. and gave the stock a “buy” rating in a report on Tuesday. FBR & Co reissued an “outperform” rating on shares of Lennar Corp. in a report on Wednesday. Keefe, Bruyette & Woods reduced their price target on shares of Lennar Corp. from $57.00 to $55.00 and set an “outperform” rating for the company in a report on Wednesday. RBC Capital Markets reissued a “buy” rating and set a $55.00 price target on shares of Lennar Corp. in a report on Wednesday. Finally, Royal Bank Of Canada reduced their price target on shares of Lennar Corp. from $64.00 to $55.00 and set an “outperform” rating for the company in a report on Wednesday. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $54.08.
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Shares of Lennar Corp. (NYSE:LEN) opened at 44.28 on Thursday. The firm has a market cap of $9.70 billion, a price-to-earnings ratio of 11.82 and a beta of 1.37. The company’s 50-day moving average is $46.28 and its 200 day moving average is $46.46. Lennar Corp. has a 52-week low of $37.14 and a 52-week high of $52.50.
Lennar Corp. (NYSE:LEN) last released its quarterly earnings data on Tuesday, September 20th. The company reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.89 by $0.12. The firm earned $2.83 billion during the quarter. Lennar Corp. had a net margin of 8.37% and a return on equity of 14.34%. The business’s revenue for the quarter was up 13.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.96 EPS. On average, analysts expect that Lennar Corp. will post $3.82 earnings per share for the current fiscal year.
A number of institutional investors have recently added to or reduced their stakes in LEN. Exxonmobil Investment Management Inc. TX boosted its position in Lennar Corp. by 8.3% in the second quarter. Exxonmobil Investment Management Inc. TX now owns 47,475 shares of the company’s stock valued at $2,189,000 after buying an additional 3,622 shares during the period. IBM Retirement Fund boosted its position in Lennar Corp. by 6.5% in the second quarter. IBM Retirement Fund now owns 19,204 shares of the company’s stock valued at $885,000 after buying an additional 1,169 shares during the period. Canada Pension Plan Investment Board boosted its position in Lennar Corp. by 166.5% in the first quarter. Canada Pension Plan Investment Board now owns 10,393 shares of the company’s stock valued at $503,000 after buying an additional 6,493 shares during the period. Oakmont Corp boosted its position in Lennar Corp. by 18.1% in the second quarter. Oakmont Corp now owns 610,270 shares of the company’s stock valued at $28,133,000 after buying an additional 93,570 shares during the period. Finally, Wesbanco Bank Inc. boosted its position in Lennar Corp. by 77.9% in the second quarter. Wesbanco Bank Inc. now owns 143,977 shares of the company’s stock valued at $6,638,000 after buying an additional 63,025 shares during the period. 86.39% of the stock is currently owned by institutional investors.
About Lennar Corp.
Lennar Corporation is a homebuilder that operates in various states with deliveries of over 24,290 new homes. The Company’s segments include Homebuilding activities, which include Homebuilding East, Homebuilding Central, Homebuilding West, Homebuilding Southeast Florida and Homebuilding Houston; Lennar Financial Services; Rialto, and Lennar Multifamily.
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