Lennar Corporation (LEN): A Stock Investors Are Watching Closely Now

Analysts at Buckingham Research, assumed coverage of Lennar Corporation (NYSE:LEN) with Buy recommendation, according to their opinion released on January 11. KeyBanc Capital Mkts analysts bumped their recommendation on LEN stock from Sector Weight to Overweight in a separate flash note to investors on January 07. Analysts at Wedbush issued an upgrade from Neutral to Outperform for the stock, in a research note that dated back to October 29.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Lennar Corporation (NYSE:LEN)’s prospects. The earliest insider trade took place on 01/02/2019. Jaffe Jonathan M parted with a total of 20 thousand shares of company at average share price of $40.03. The total for the sales was set at $800.6 thousand. After this transaction, the President/COO account balance stood at 47.12 thousand shares. The stock grew 15.94 percent since that insider sale. On 07/02/2018, Jaffe Jonathan M, President/COO, sold 20 thousand shares at a price per share of $52.12. This removed 1.04 million shares from the insider’s fortune and the stock saw a -10.96 percent retreat in value since the news became public. This transaction left 47.12 thousand shares in the President/COO account. On 05/23/2018, Senior Vice President Mccall Jeffrey Joseph performed a sale transaction worth $2.58 million. This sale at $50.7 each has eliminated 50.89 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -8.46 percent decrease since the transaction was reported. The insider now is left with 3.9 thousand shares remaining in the account. Mccall Jeffrey Joseph, who performs the Senior Vice President job, sold 50.89 thousand shares for $2.74 million. The disposal occurred on 05/09/2018 was priced at $53.92 per share. The share price plunged -13.93 percent since the reporting date. Mccall Jeffrey Joseph now left with a stake of 3.8 thousand LEN stock worth $176.13 thousand after the insider selling.

Lennar Corporation (LEN) is expected to jump by 22.28 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $70-month high price target. This represents a whopping 50.83 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $56, which represents a return potential of 20.66 percent when compared to the closing price of the stock of $46.41 on Friday, January 11. The lowest price target for the stock is $48 — slightly more than 3.43 percent from LEN’s current share price.

The shares are currently floating around the first support level of $45.21. Below this, the next support is placed in the zone of $44.01. Till the time, the LEN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 68.07 on daily chart, which may remain a cause for concern. If the price breaks below $44.01 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $47.41 mark may result into a pull-back move towards $48.41 level.

LEN shares accumulated 1.24 points or 2.75 percent on Friday to $46.41 with a heavy trade volume of 5.39 million shares. After opening the session at $45.17, the shares went as high as $47.21 and as low as $45.01, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $14.6 billion and now has 314.26 million shares outstanding. Lennar Corporation (LEN) stock has gained 14.68 percent of market value in 21 trading days.

LEN stock has a trailing 3-year beta of 1.27, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $4.21 a share in the trailing twelve months. The stock’s value has surged 18.54 percent year to date (YTD) against a decline of -32.01 percent in 12 month’s time. The company’s shares still trade -35.69 percent away from its 1-year high of $72.17 and 24.46 percent up from 52-week low of $37.29. The average consensus rating on the company is 1.7, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Lennar Corporation (LEN) are trading at a P/E ratio of 16.32 times earnings reported for the past 12 months. The industry LEN operates in has an average P/E of 12.35. Its P/E ratio went as low as 10.81X and as high as 16.85 over the 5-year span. Further, it is sporting a 0.81 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.77. 12.7 percent is the gross profit margin for Lennar Corporation and operating margin sits at 7.8 percent. Along with this, the net profit margin is 4.9 percent.