Lennar (NYSE:LEN) Sets New 1-Year Low After Earnings Miss

Lennar Co. (NYSE:LEN - Get Free Report) hit a new 52-week low during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $135.21 and last traded at $140.29, with a volume of 1040813 shares trading hands. The stock had previously closed at $145.93.

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

Lennar Announces Dividend

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

Analysts Set New Price Targets

Several research analysts have recently issued reports on LEN shares. Royal Bank of Canada raised their target price on Lennar from $145.00 to $160.00 and gave the stock an "underperform" rating in a research report on Monday, September 23rd. StockNews.com cut Lennar from a "buy" rating to a "hold" rating in a report on Saturday, September 28th. Bank Of America (Bofa) raised their price target on shares of Lennar from $171.00 to $190.00 and gave the stock a "neutral" rating in a report on Friday, September 20th. Barclays lowered shares of Lennar from an "overweight" rating to an "equal weight" rating and reduced their price objective for the company from $210.00 to $181.00 in a research note on Wednesday, December 11th. Finally, Wedbush reissued a "neutral" rating and set a $164.00 target price on shares of Lennar in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $182.88.

Insider Activity

In other Lennar news, Director Jeffrey Sonnenfeld sold 17,500 shares of the stock in a transaction dated Monday, October 28th. The shares were sold at an average price of $175.13, for a total transaction of $3,064,775.00. Following the completion of the transaction, the director now owns 23,689 shares in the company, valued at $4,148,654.57. This trade represents a 42.49 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders own 9.36% of the company's stock.

Institutional Investors Weigh In On Lennar

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Oddo BHF Asset Management Sas purchased a new position in shares of Lennar during the third quarter worth about $2,543,000. Synovus Financial Corp grew its stake in Lennar by 1.3% in the 3rd quarter. Synovus Financial Corp now owns 47,348 shares of the construction company's stock worth $8,877,000 after buying an additional 627 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new position in shares of Lennar in the 3rd quarter worth $241,000. World Investment Advisors LLC purchased a new stake in shares of Lennar during the 3rd quarter valued at $251,000. Finally, Sanctuary Advisors LLC lifted its holdings in shares of Lennar by 9.4% during the 3rd quarter. Sanctuary Advisors LLC now owns 43,049 shares of the construction company's stock worth $8,071,000 after acquiring an additional 3,712 shares during the last quarter. 81.10% of the stock is currently owned by institutional investors.

Lennar Trading Down 5.2 %

The stock's fifty day moving average price is $169.78 and its two-hundred day moving average price is $169.58. The company has a current ratio of 4.90, a quick ratio of 0.98 and a debt-to-equity ratio of 0.08. The stock has a market capitalization of $37.54 billion, a P/E ratio of 9.17, a price-to-earnings-growth ratio of 1.31 and a beta of 1.61.

About Lennar

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.