Bank of America Reaffirms Underperform Rating for Lennar (NYSE:LEN)

Lennar (NYSE:LEN)‘s stock had its “underperform” rating reaffirmed by research analysts at Bank of America in a report released on Thursday, Marketbeat Ratings reports. They presently have a $95.00 price objective on the construction company’s stock, down from their prior price objective of $125.00. Bank of America‘s target price suggests a potential downside of 11.97% from the stock’s current price.

Several other brokerages have also commented on LEN. Evercore ISI lowered Lennar from an “in-line” rating to an “underperform” rating and cut their price target for the company from $114.00 to $92.00 in a research note on Thursday. Citigroup reiterated an “outperform” rating on shares of Lennar in a report on Monday, September 22nd. Wells Fargo & Company reduced their price target on shares of Lennar from $135.00 to $125.00 and set an “equal weight” rating for the company in a report on Friday, October 10th. Barclays dropped their price objective on shares of Lennar from $98.00 to $88.00 and set an “underweight” rating on the stock in a research note on Thursday. Finally, Wedbush reissued a “neutral” rating and issued a $130.00 price objective on shares of Lennar in a research note on Monday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eight have issued a Hold rating and seven have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus price target of $109.62.

Lennar Stock Performance

Shares of NYSE:LEN opened at $107.91 on Thursday. The firm’s 50 day simple moving average is $122.72 and its 200-day simple moving average is $121.53. The company has a debt-to-equity ratio of 0.18, a quick ratio of 0.68 and a current ratio of 4.89. Lennar has a one year low of $98.42 and a one year high of $144.24. The firm has a market cap of $27.52 billion, a PE ratio of 13.51, a price-to-earnings-growth ratio of 4.54 and a beta of 1.38.

Lennar (NYSE:LEN) last announced its quarterly earnings data on Tuesday, December 16th. The construction company reported $2.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.30 by ($0.27). The firm had revenue of $9.37 billion during 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 firm’s revenue for the quarter was down 5.8% compared to the same quarter last year. During the same period last year, the company earned $4.03 EPS. As a group, equities analysts predict that Lennar will post 12.48 EPS for the current year.

Institutional Trading of Lennar

Institutional investors have recently made changes to their positions in the business. AIA Group Ltd raised its stake in Lennar by 134.5% in the third quarter. AIA Group Ltd now owns 23,124 shares of the construction company’s stock valued at $2,915,000 after buying an additional 13,264 shares during the last quarter. Tevis Investment Management increased its holdings in shares of Lennar by 5.7% during the third quarter. Tevis Investment Management now owns 9,169 shares of the construction company’s stock valued at $1,156,000 after acquiring an additional 492 shares in the last quarter. Groupama Asset Managment purchased a new position in shares of Lennar in the 3rd quarter valued at approximately $304,000. KERR FINANCIAL PLANNING Corp acquired a new stake in Lennar in the 3rd quarter worth approximately $25,000. Finally, Prana Capital Management LP grew its position in Lennar by 17.7% during the 3rd quarter. Prana Capital Management LP now owns 393,027 shares of the construction company’s stock worth $49,537,000 after purchasing an additional 59,236 shares during the last quarter. Institutional investors and hedge funds own 81.10% of the company’s stock.

Trending Headlines about Lennar

Here are the key news stories impacting Lennar this week:

• Positive Sentiment: Technicals and estimate momentum: Zacks notes LEN is in oversold territory after recent selling and highlights broad analyst agreement in raising earnings estimates, which could set up a trend reversal if fundamentals stop deteriorating. Article Title
• Positive Sentiment: Longer-term rebound case: Zacks includes LEN among “beaten-down” names that could see a turnaround in 2026 if identifiable catalysts (policy, rates, affordability improvements) reaccelerate demand. Article Title
• Neutral Sentiment: Earnings-call details available: The full Q4 2025 earnings call transcript outlines management’s commentary and guidance assumptions; useful for assessing whether cost and volume plans are credible. Article Title
• Neutral Sentiment: Operational response: HousingWire reports Lennar is targeting margin stability through operational efficiency and steady volumes — a key item to watch for margin recovery. Article Title
• Negative Sentiment: Earnings miss and market reaction: LEN reported weaker-than-expected Q4 results and shares gapped down on the miss, prompting the initial selloff. Article Title
• Negative Sentiment: Price cuts and demand worries: Lennar cut home prices by ~10% and the CEO acknowledged an affordability crisis — a clear near-term drag on ASPs and margins. Article Title
• Negative Sentiment: Analyst downgrades and price-target cuts: Multiple firms trimmed ratings or targets (JPMorgan to $80 underweight; RBC and BofA to underperform with ~$95 PT; KBW cut PT to $115), increasing downside pressure from sell-side sentiment. Article Title Article Title
• Negative Sentiment: Profit fell and housing remains stagnant: The WSJ and other outlets highlight a drop in quarterly profit and a still-soft housing market — macro demand weakness could keep headwinds for LEN. Article Title

Lennar Company Profile

Lennar Corporation (NYSE: LEN) is a U.S.-based homebuilder and real estate company that designs, constructs and sells residential housing. The company offers a range of product types including single-family detached homes, townhomes and condominiums, serving buyers from entry-level and first-time purchasers to move-up, active-adult and luxury segments. Lennar also develops master-planned communities and manages land acquisition and entitlement activities that support its homebuilding operations.

In addition to home construction and sales, Lennar provides a suite of ancillary services intended to streamline the purchase process and capture additional value.