Lennar (NYSE:LEN) Shares Gap Down on Disappointing Earnings

Lennar Corporation (NYSE:LEN)’s stock price gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $117.57, but opened at $113.65. Lennar shares last traded at $110.2760, with a volume of 3,172,269 shares.

The construction company reported $2.03 earnings per share for the quarter, missing the consensus estimate of $2.30 by ($0.27). The company had revenue of $9.37 billion for the quarter, compared to the consensus estimate of $9.17 billion. Lennar had a return on equity of 9.27% and a net margin of 6.08%.The business’s revenue was down 5.8% compared to the same quarter last year. During the same period in the prior year, the business earned $4.03 earnings per share.

Lennar Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, October 27th. Investors of record on Friday, October 10th were paid a $0.50 dividend. The ex-dividend date of this dividend was Friday, October 10th. This represents a $2.00 dividend on an annualized basis and a yield of 1.8%. Lennar’s dividend payout ratio (DPR) is currently 25.03%.

Analysts Set New Price Targets

LEN has been the subject of a number of analyst reports. JPMorgan Chase & Co. reduced their price objective on shares of Lennar from $115.00 to $80.00 and set an “underweight” rating for the company in a research note on Thursday. Wells Fargo & Company reduced their price target on shares of Lennar from $125.00 to $110.00 and set an “equal weight” rating for the company in a research report on Thursday. Zacks Research raised shares of Lennar from a “strong sell” rating to a “hold” rating in a research note on Thursday, December 4th. Wedbush reissued a “neutral” rating and set a $130.00 target price on shares of Lennar in a research note on Monday, September 22nd. Finally, UBS Group reduced their target price on Lennar from $161.00 to $137.00 and set a “buy” rating for the company in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eight have given a Hold rating and seven have issued a Sell rating to the company’s stock. According to MarketBeat.com, Lennar currently has a consensus rating of “Reduce” and an average target price of $109.62.

Hedge Funds Weigh In On Lennar

Institutional investors have recently modified their holdings of the company. Guerra Advisors Inc bought a new stake in Lennar during the third quarter valued at about $25,000. KERR FINANCIAL PLANNING Corp bought a new stake in Lennar in the 3rd quarter valued at $25,000. Redmont Wealth Advisors LLC acquired a new stake in Lennar in the 3rd quarter worth $26,000. FNY Investment Advisers LLC bought a new position in shares of Lennar during the 2nd quarter worth about $33,000. Finally, Rexford Capital Inc. bought a new position in shares of Lennar during the 2nd quarter worth about $36,000. Institutional investors own 81.10% of the company’s stock.

Lennar Trading Down 3.3%

The firm has a market cap of $27.66 billion, a P/E ratio of 13.58, a PEG ratio of 4.70 and a beta of 1.38. The company’s 50 day moving average is $122.94 and its two-hundred day moving average is $121.51. The company has a debt-to-equity ratio of 0.18, a current ratio of 4.89 and a quick ratio of 0.68.

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.