Equities research analysts at JPMorgan Chase & Co. have reaffirmed their “underweight” rating for Lennar Corporation (NYSE: LEN), reflecting concerns about the company’s stock value. In a report issued on September 18, 2023, the firm set a target price of $115.00 per share, a decrease from their previous target of $118.00. This outlook suggests a potential downside of approximately 7.27% from Lennar’s current trading price.
Analysts from various financial institutions have weighed in on Lennar’s performance. Wedbush maintained a “neutral” rating with a price target of $130.00, while Wall Street Zen upgraded the stock from “sell” to “hold.” Additionally, Royal Bank Of Canada raised its price target from $98.00 to $106.00, assigning a “sector perform” rating. In contrast, UBS Group increased its target for Lennar from $146.00 to $161.00, designating it as a “buy.” Wells Fargo & Company adjusted its price objective downward from $135.00 to $125.00, maintaining an “equal weight” rating.
Currently, one analyst has rated Lennar with a “Strong Buy,” three analysts issued a “Buy” rating, eleven have given a “Hold” rating, and four analysts rated the stock as a “Sell.” According to data from MarketBeat.com, Lennar’s stock holds an average rating of “Hold” with a consensus price target of $121.54.
Quarterly Earnings Report
On September 18, 2023, Lennar released its quarterly earnings, revealing earnings per share (EPS) of $2.00. This figure fell short of the consensus estimate of $2.14 by $0.14. The company reported total revenue of $8.81 billion, compared to the anticipated $9.01 billion. Notably, Lennar’s net margin was 7.72% with a return on equity of 11.09%, but revenue marked a decline of 6.4% compared to the same quarter the previous year, when the firm earned $3.90 per share.
Analysts predict that Lennar will post an EPS of $12.48 for the current fiscal year.
Institutional Investment Activity
Institutional investors have shown significant activity regarding their holdings in Lennar. Texas Capital Bank Wealth Management Services Inc. raised its position in the company by 77.7% during the first quarter, now owning 3,649 shares valued at $419,000. Other notable changes include denkapparat Operations GmbH, which acquired a new position valued at approximately $408,000, and Steward Partners Investment Advisory LLC, which boosted its holdings by 199.9% to own 31,187 shares worth $3.58 million.
Furthermore, Allstate Corp increased its stake by 62.4%, now holding 11,711 shares valued at $1.34 million. A total of 81.10% of Lennar’s stock is currently owned by institutional investors, reflecting a strong confidence in the company’s long-term potential despite recent fluctuations in stock ratings and price targets.
Lennar operates as a prominent homebuilder in the United States, offering a wide array of residential construction services through various segments, including homebuilding and financial services. As the housing market evolves, analysts will continue monitoring the company’s performance closely.
