Lennar (NYSE:LEN) Shares Gap Down – Here’s What Happened

Lennar Co. (NYSE:LEN) shares gapped down before the market opened on Tuesday . The stock had previously closed at $174.09, but opened at $161.75. Lennar shares last traded at $163.46, with a volume of 522,880 shares traded.

Analyst Upgrades and Downgrades

LEN has been the subject of several recent research reports. Wells Fargo & Company lowered shares of Lennar from an “overweight” rating to an “equal weight” rating and lowered their price target for the stock from $205.00 to $190.00 in a research report on Monday, October 7th. Bank of America lifted their price target on Lennar from $171.00 to $190.00 and gave the company a “neutral” rating in a report on Thursday, September 19th. Bank Of America (Bofa) raised their target price on Lennar from $171.00 to $190.00 and gave the company a “neutral” rating in a research report on Friday, September 20th. Royal Bank of Canada boosted their price target on Lennar from $145.00 to $160.00 and gave the stock an “underperform” rating in a research report on Monday, September 23rd. Finally, JPMorgan Chase & Co. raised their price target on Lennar from $154.00 to $173.00 and gave the company a “neutral” rating in a report on Monday, September 23rd. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $181.11.

Lennar Stock Performance

The firm’s fifty day simple moving average is $182.05 and its 200 day simple moving average is $167.32. The company has a debt-to-equity ratio of 0.08, a current ratio of 4.90 and a quick ratio of 0.98. The company has a market capitalization of $45.34 billion, a price-to-earnings ratio of 11.11, a PEG ratio of 1.62 and a beta of 1.61.

Lennar (NYSE:LEN) last released its earnings results on Thursday, September 19th. The construction company reported $3.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.62 by $0.28. The company had revenue of $9.42 billion during the quarter, compared to analyst estimates of $9.14 billion. Lennar had a return on equity of 15.47% and a net margin of 11.51%. The company’s revenue for the quarter was up 7.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.91 earnings per share. On average, sell-side analysts forecast that Lennar Co. will post 14.18 EPS for the current year.

Lennar Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, October 24th. Shareholders of record on Wednesday, October 9th were paid a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.20%. The ex-dividend date was Wednesday, October 9th. Lennar’s dividend payout ratio (DPR) is currently 13.60%.

Hedge Funds Weigh In On Lennar

A number of hedge funds have recently modified their holdings of the stock. Oakworth Capital Inc. acquired a new position in Lennar in the 3rd quarter worth about $27,000. Wolff Wiese Magana LLC increased its holdings in Lennar by 933.3% in the third quarter. Wolff Wiese Magana LLC now owns 155 shares of the construction company’s stock worth $29,000 after buying an additional 140 shares during the last quarter. J.Safra Asset Management Corp acquired a new stake in Lennar in the first quarter valued at approximately $30,000. GHP Investment Advisors Inc. bought a new stake in Lennar in the third quarter worth approximately $30,000. Finally, New Covenant Trust Company N.A. acquired a new position in shares of Lennar during the 1st quarter worth $32,000. 81.10% of the stock is owned by institutional investors and hedge funds.

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.