The stock price of Lennar Corp. (NYSE: LEN) has jumped by 1.98 compared to previous close of 182.19. Despite this, the company has seen a fall of -0.75% in its stock price over the last five trading days. seekingalpha.com reported 2024-09-22 that Lennar Corporation reported Q3 FY2024 earnings on Thursday. The market was disappointed despite a beat on EPS and revenue estimates. In this update, I discuss reasons for the sell-off in LEN stock and whether the industry outlook has changed, now that the Fed has started to cut rates. I discuss whether the strong performance (LEN shares are up 24% year-to-date) is justified after an already very strong performance in 2023.
Is It Worth Investing in Lennar Corp. (NYSE: LEN) Right Now?
Lennar Corp. (NYSE: LEN) has a higher price-to-earnings ratio of 12.31x compared to its average ratio, The 36-month beta value for LEN is at 1.61. Analysts have varying views on the stock, with 6 analysts rating it as a “buy,” 7 rating it as “overweight,” 9 as “hold,” and 0 as “sell.”
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The public float for LEN is 235.82M, and currently, shorts hold a 2.19% of that float. The average trading volume for LEN on September 24, 2024 was 2.12M shares.
LEN’s Market Performance
LEN’s stock has seen a -0.75% decrease for the week, with a 3.95% rise in the past month and a 23.32% gain in the past quarter. The volatility ratio for the week is 2.46%, and the volatility levels for the past 30 days are at 2.30% for Lennar Corp. The simple moving average for the past 20 days is 1.69% for LEN’s stock, with a 16.32% simple moving average for the past 200 days.
Analysts’ Opinion of LEN
Goldman, on the other hand, stated in their research note that they expect to see LEN reach a price target of $174, previously predicting the price at $180. The rating they have provided for LEN stocks is “Neutral” according to the report published on July 22nd, 2024.
Wedbush gave a rating of “Neutral” to LEN, setting the target price at $144 in the report published on July 09th of the current year.
LEN Trading at 5.52% 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 -4.13% of loss for the given period.
Volatility was left at 2.30%, however, over the last 30 days, the volatility rate increased by 2.46%, as shares surge +0.42% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +16.21% upper at present.
During the last 5 trading sessions, LEN fell by -0.75%, which changed the moving average for the period of 200-days by +40.86% in comparison to the 20-day moving average, which settled at $182.76. In addition, Lennar Corp. saw 24.66% 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 Jeffrey J. McCall, who proposed sale 10,000 shares at the price of $180.97 back on Aug 23 ’24. After this action, Jeffrey J. McCall now owns shares of Lennar Corp., valued at $1,809,700 using the latest closing price.
SUSTANA MARK, the VP/General Counsel/Secretary of Lennar Corp., sale 9,176 shares at $164.88 during a trade that took place back on May 20 ’24, which means that SUSTANA MARK is holding 16,768 shares at $1,512,939 based on the most recent closing price.
Stock Fundamentals for LEN
Current profitability levels for the company are sitting at:
- 0.15 for the present operating margin
- 0.65 for the gross margin
The net margin for Lennar Corp. stands at 0.12. The total capital return value is set at 0.14. Equity return is now at value 15.70, with 10.79 for asset returns.
Currently, EBITDA for the company is 5.53 billion with net debt to EBITDA at -0.73. When we switch over and look at the enterprise to sales, we see a ratio of 1.27. The receivables turnover for the company is 36.62for trailing twelve months and the total asset turnover is 0.92. The liquidity ratio also appears to be rather interesting for investors as it stands at 4.90.
Conclusion
In conclusion, Lennar Corp. (LEN) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
