Lennar Corp. (LEN) Shares Decline Despite Market Challenges

The stock of Lennar Corp. (NYSE: LEN) has decreased by -3.18 when compared to last closing price of 167.81. Despite this, the company has experienced a -2.15% fall in its stock price over the last five trading sessions. Investopedia reported 2024-04-02 that A number of homebuilding companies’ shares fell Tuesday after Wedbush Securities analysts predicted seasonal stock-price drops that could be exacerbated by persistently high mortgage rates, inflation, and delayed interest rate cuts.

Is It Worth Investing in Lennar Corp. (NYSE: LEN) Right Now?

The price-to-earnings ratio for Lennar Corp. (NYSE: LEN) is 11.38x, which is above its average ratio. Moreover, the 36-month beta value for LEN is 1.53. Analysts have varying opinions on the stock, with 6 analysts rating it as a “buy,” 7 as “overweight,” 9 as “hold,” and 0 as “sell.”

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The public float for LEN is 239.66M and currently, short sellers hold a 1.74% of that float. On April 03, 2024, LEN’s average trading volume was 2.09M shares.

LEN’s Market Performance

LEN’s stock has seen a -2.15% decrease for the week, with a 0.61% rise in the past month and a 9.01% gain in the past quarter. The volatility ratio for the week is 2.02%, and the volatility levels for the past 30 days are at 2.39% for Lennar Corp. The simple moving average for the past 20 days is -0.52% for LEN’s stock, with a 22.28% simple moving average for the past 200 days.

Analysts’ Opinion of LEN

Jefferies, on the other hand, stated in their research note that they expect to see LEN reach a price target of $117. The rating they have provided for LEN stocks is “Hold” according to the report published on November 27th, 2023.

Wells Fargo gave a rating of “Overweight” to LEN, setting the target price at $123 in the report published on October 17th of the previous year.

LEN Trading at 3.54% from the 50-Day Moving Average

After a stumble in the market that brought LEN to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -5.86% of loss for the given period.

Volatility was left at 2.39%, however, over the last 30 days, the volatility rate increased by 2.02%, as shares surge +1.21% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.02% upper at present.

During the last 5 trading sessions, LEN fell by -2.15%, which changed the moving average for the period of 200-days by +41.59% in comparison to the 20-day moving average, which settled at $163.42. In addition, Lennar Corp. saw 9.01% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at LEN starting from BESSETTE DIANE J, who sale 10,000 shares at the price of $147.73 back on Dec 26 ’23. After this action, BESSETTE DIANE J now owns 260,556 shares of Lennar Corp., valued at $1,477,300 using the latest closing price.

SUSTANA MARK, the VP/General Counsel/Secretary of Lennar Corp., sale 37,304 shares at $146.38 during a trade that took place back on Dec 21 ’23, which means that SUSTANA MARK is holding 18,694 shares at $5,460,560 based on the most recent closing price.

Stock Fundamentals for LEN

Current profitability levels for the company are sitting at:

  • 0.16 for the present operating margin
  • 0.46 for the gross margin

The net margin for Lennar Corp. stands at 0.12. The total capital return value is set at 0.17. Equity return is now at value 15.71, with 10.63 for asset returns.

Based on Lennar Corp. (LEN), the company’s capital structure generated 0.14 points at debt to capital in total, while cash flow to debt ratio is standing at 1.04. The debt to equity ratio resting at 0.17. The interest coverage ratio of the stock is 36.36.

Currently, EBITDA for the company is 5.53 billion with net debt to EBITDA at -0.13. When we switch over and look at the enterprise to sales, we see a ratio of 1.26. The receivables turnover for the company is 27.27for trailing twelve months and the total asset turnover is 0.9. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.27.

Conclusion

To wrap up, the performance of Lennar Corp. (LEN) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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