Morningstar and Charles Schwab released rate forecasts on the same day and reached opposite conclusions, and which firm is right will determine whether your next mortgage payment goes up or down before 2028.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Two major investment firms released podcast episodes on October 23, 2026, and they disagree on the question that matters most to anyone buying a home or living off savings. The Investing Insights podcast from Morningstar expects inflation to ease and the Federal Reserve to begin cutting “in the second half of 2027.” The On Investing podcast from Charles Schwab expects the Fed to hold at its October 27–28 meeting and then raise rates again, forecasting “a hike by year end in December and then another one sometime in early 2027.” One forecast has relief arriving by 2028. The other has more hikes coming first. For household budgets, Schwab’s path carries greater planning risk, while Morningstar’s would offer upside.
Where Rates Stand Right Now
On September 17, 2026, the Fed raised the upper bound of its target range to 4.00% from 3.75%, a move Schwab expects the Fed to repeat. The 10-year Treasury yield closed at 5.13% on October 21, below its one-year closing high of 5.31% on October 5. After a hot Consumer Price Index report, Morningstar noted that the 10-year briefly “got as high as 5.32%” intraday.
The average 30-year fixed mortgage rate was 7.32% for the week of October 22, down from the one-year high of 7.40% the week before. Prediction-market traders put the probability of a hold at the October meeting, Schwab’s base case, at 93.5%.
Why Housing Has Not Hit Bottom
According to Morningstar, the median U.S. existing home price has risen more than 50% since 2020. Owners holding cheap mortgages have little reason to sell, and Morningstar’s podcast warns that because of this lock-in effect, existing-home transactions “will probably remain quite low.” In September, existing-home sales ran at an annualized 3.99 million, a pace typical of a soft market. Morningstar adds that if rates stay where they are, “I don’t think we’ve seen the bottom of the housing market in this cycle yet.”
For buyers, the advantage is in new construction. Builders subsidize rate buydowns, which Morningstar describes as “trading volume at the expense of margins.”
Lennar Shows What a Buydown Costs
Lennar (NYSE:LEN | LEN Price Prediction) is putting numbers on that tradeoff. In its fiscal third quarter, gross margin on home sales fell to 15.8% from 17.5% a year earlier, and incentives ran near 12.0%. Lennar also lowered its full-year delivery guidance to 80,000 to 81,000 homes. Rate cuts, CEO Stuart Miller said, would help, “but we are not holding our breath.”
Morningstar says Lennar’s stock price implies “their depressed margins will never recover, which we think is just too pessimistic.” Shares rose 8.7% on October 22 to $84.45 but remain down 34.4% over the past year. If Schwab is right, the risk grows: a Lennar executive said higher rates would raise “the cost of our rate buydown.”
Retirees Can Lock In Income Today
For savers, Schwab’s forecast is mostly good news. Schwab calls current yields “very attractive” and says that a strategy paying 5% earns its keep through income even if prices go nowhere. Price declines are temporary, Schwab notes, because on a bond “held to maturity, you do get the principal back.”
Higher yields also bring more risk. In an earlier episode, Schwab said junk-rated issuers “tend to be most at risk when rates rise.” Schwab also called neocloud AI companies the riskiest corner of AI, since they fund long-duration growth with short-fuse debt.
Signals to Watch After October 28
Look past the decision at the October 27–28 meeting, which is almost certain to be a hold, and focus on the inflation data. Schwab says a core Personal Consumption Expenditures reading of 0.3% for the month would be too hot and would keep a December hike in play. If Schwab is right, the first signs will be a Fed hike in December and the 10-year yield climbing back toward 5.31%. If Morningstar is right, weekly mortgage rates will start drifting down from 7.32% before the Fed changes anything. In Lennar’s next earnings report, compare gross margin with its 15.5% to 16.0% guidance to see whether housing backs Schwab or Morningstar.
Contact [email protected] for any questions or corrections.
On October 22, 2026, Lennar Corp LEN shares rose 8.7% to a current price of $84.45, reflecting a strong upward movement in a challenging market. The stock has traded between $71.78 and $133.76 over the past year, indicating significant volatility.
GF Value™ verdict: Current price is $84.45 vs GF Value of $124.32, indicating a 32.1% undervaluation.GF Score™ of 71/100 signifies an above-average rating, suggesting decent fundamentals.Most notable signal: Insiders bought $589.6M worth of shares over the past 12 months without any selling activity.Is LEN Overvalued or Undervalued?Lennar Corp's current trading price of $84.45 is significantly below the GF Value™ estimate of $124.32, creating a margin of safety of 32.1%. The GF Value™ represents GuruFocus' proprietary intrinsic-value estimate, which is derived from an analysis of historical trading multiples, past business growth, and future performance forecasts. Given that the GF Valuation label indicates the stock is significantly undervalued, this presents a potential opportunity for investors who can navigate the inherent risks associated with the homebuilding sector.
However, while the undervaluation suggests that the stock could appreciate, it is essential to consider the broader economic conditions that may impact future performance. The year-to-date decline of 16.0% and a one-year drop of 32.1% highlight challenges that the company may face in maintaining profitability and growth moving forward.
How Does LEN's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)16.0x9.1x (5-Year Median)Forward P/E15.8xN/ACurrently, Lennar's P/E ratio of 16.0x is 75% higher than its 5-year median of 9.1x, indicating that the stock is trading above its historical valuation levels. This P/E analysis aligns with the GF Value™ verdict, suggesting that while the stock may be undervalued based on GF Value™, its higher P/E indicates that investors are pricing in recovery or growth expectations that may not yet be realized.
What Does LEN's GF Score™ Tell Us?The GF Score™ evaluates a stock's overall performance based on several factors, including financial strength, profitability, growth potential, valuation, and momentum. Lennar's GF Score™ of 71/100 indicates that it is performing above average relative to its peers.
MetricRatingGF Score™71/100Financial Strength6/10Profitability8/10Growth3/10Valuation4/10Momentum5/10Analyzing these scores, the strongest area lies in profitability, where LEN scores an impressive 8/10, reflecting robust earnings potential. However, the growth rank of 3/10 raises concerns about the company's ability to expand, suggesting that while the current valuation may be attractive, the long-term growth prospects might need to be closely monitored.
What Are Gurus and Insiders Doing with LEN?Currently, 12 gurus hold shares of Lennar Corp, with 8 adding to their positions and 5 trimming their holdings in recent quarters. This indicates a generally positive outlook from knowledgeable investors, which is an essential factor that differentiates GuruFocus from other platforms.
Moreover, insider activity has been notably strong, as insiders purchased $589.6M worth of stock in the past year with no reported selling. This level of insider buying can often signal confidence in the company's future prospects and may provide reassurance to potential investors that management believes the stock is undervalued.
What This Means for InvestorsBased on the GF Value™ assessment, Lennar Corp appears to be undervalued at its current price of $84.45, offering a potential opportunity for investors. However, the strong insider buying signals and above-average profitability rank must be weighed against the company's challenges in growth and valuation metrics. Investors should consider these factors carefully before making any decisions regarding their positions in LEN.
For more detailed information and analysis, visit the Lennar Corp LEN stock page, and explore additional insights on the GF Value™ page or the GuruFocus Stock Screener.
Frequently Asked QuestionsWhat is LEN's GF Score™?
Lennar Corp has a GF Score™ of 71/100, indicating above-average performance relative to its peers.
Is LEN overvalued or undervalued?
LEN is currently undervalued, with a GF Value™ estimate of $124.32 compared to its market price of $84.45.
What is LEN's P/E ratio?
LEN has a P/E (TTM) ratio of 16.0x, which is significantly higher than its 5-year median of 9.1x, suggesting that it is trading above its historical valuation level.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Lennar (LEN - Free Report) closed at $77.70 in the latest trading session, marking a -1.21% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.05%.
Prior to today's trading, shares of the homebuilder had lost 5.31% lagged the Construction sector's loss of 4.59% and the S&P 500's gain of 0.97%.
Market participants will be closely following the financial results of Lennar in its upcoming release. The company is predicted to post an EPS of $1.54, indicating a 24.14% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.72 billion, down 6.94% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.95 per share and revenue of $31.52 billion. These totals would mark changes of -38.59% and -7.79%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lennar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.14% downward. As of now, Lennar holds a Zacks Rank of #5 (Strong Sell).
Investors should also note Lennar's current valuation metrics, including its Forward P/E ratio of 15.9. This indicates a premium in contrast to its industry's Forward P/E of 12.43.
We can also see that LEN currently has a PEG ratio of 2.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Home Builders industry stood at 2.22 at the close of the market yesterday.
The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
New York, New York--(Newsfile Corp. - October 21, 2026) - The law firm of Kirby McInerney LLP continues its investigation on behalf of Lennar Corporation ("Lennar" or the "Company") (NYSE: LEN) investors concerning the Company's and/or members of its senior management's possible violation of the federal securities laws and other unlawful business practices.
[CONTACT THE FIRM IF YOU SUFFERED A LOSS]
What Happened?
On October 2, 2026, Hunterbrook Media LLC published a report entitled "Exclusive: Lennar's Big New Customer Is Its Own Spinoff, Millrose," revealing that Millrose, the spinoff company Lennar created in 2025 to hold its land, bought over $200 million of Lennar homes in about a month and has become the largest buyer of Lennar homes in the last month. The report asserts that "the purchases arrived just when Lennar needed them" and that "these sales were the difference between meeting and missing [its delivery forecast]," as Millrose purchased 356 homes in the last week of Lennar's third quarter 2026, and Lennar beat its delivery forecast by 340 homes. The report also states that Millrose has been purchasing Lennar homes for higher prices than individual and other institutional buyers and is renting those homes out at a loss. On this news, the price of Lennar shares declined by $5.37 per share, or approximately 6.73%, from $79.81 per share on October 2, 2026, to close at $74.44 on October 5, 2026.
What Should I Do?
At this stage, no lawsuit has been filed. The investigation is ongoing to determine whether claims may be brought under federal securities laws.
If you purchased or otherwise acquired Lennar securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.
[LEARN MORE ABOUT SECURITIES CLASS ACTIONS]
Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found on Kirby McInerney LLP's website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/320087
Source: Kirby McInerney LLP
Ready to Announce with Confidence?
Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Pending home sales just cratered to a record low, yet homebuilder stocks surged the same day the data dropped. What traders are betting on reveals a split between what the housing market is showing and where some believe it is…
Contracts to buy existing homes fell 7.3% in September. That drop pushed the pending home sales index to 66.0, its lowest level since the series began in 2001, while economists expected a fall of only 0.5%.
Homebuilder stocks rose anyway on Oct. 20, 2026, the day the data came out. The iShares U.S. Home Construction ETF (BATS:ITB) closed at $87.32, up 2.80%. Lennar (NYSE:LEN | LEN Price Prediction) gained 3.66% to $78.65, and D.R. Horton (NYSE:DHI) rose 3.59% to $140.17.
The gap between the data and the stocks shows how much pressure builders face. The 30-year fixed mortgage averaged 7.40% for the week of Oct. 15, compared with 6.27% a year earlier, and builders are cutting prices to keep homes selling.
Contracts Fell in Every Region The West had the steepest drop, down 9.2% for the month and 15.0% from a year earlier. The South fell 8.2%, the Midwest 6.5% and the Northeast 4.2%.
Rates climbed quickly during the month. One lender survey showed the 30-year average going from 6.8% to nearly 7.5% as Treasury yields rose and the war with Iran added to inflation. The 10-year Treasury yield was at 5.15% on Oct. 19.
National Association of Realtors chief economist Lawrence Yun said, “Market conditions weakened in September due to fast-rising mortgage rates.”
Builders Are Giving Up Margin on Every Sale Housing starts fell 5.2% in September. The builder sentiment index dropped 3 points to 29, its lowest reading since June 2012, and 43% of builders cut prices by an average of 6%.
Land and construction costs are already paid by the time a house is sold, so every price cut or rate buydown comes straight out of gross margin. Lennar’s home sales gross margin was 15.8%, down from 17.5% a year earlier, with incentives at about 12.0%. The company also cut its full-year delivery target to 80,000 to 81,000 homes.
Possible Reasons for the Rally No one has explained the rally. One likely reason is that much of the bad news was already priced in: ITB is down 14.79% over the past year, and Lennar is down 21.78% this year after reaching a 52-week high of $133.76.
Some traders may also think rates are close to peaking. Yun said rates “could be topping out”, but that is a forecast, and one mortgage data firm expects the rate to reach 7.8% within three months.
Builders also have a tool that people selling their own homes lack. As of June 30, D.R. Horton’s backlog buyers using its mortgage arm had a rate of 4.9%, which the company paid for.
D.R. Horton Faces the Next Test D.R. Horton is trading near its 52-week low of $130.40, and its quarterly results are due soon. Its cancellation rate rose to 20% from 17%, but its 20.7% gross margin gives it more room to pay for incentives than Lennar.
What the Housing Data Means for ITB and Its Biggest Builders The data points to continued pressure on ITB. A one-day rise on the weakest contract reading in the series’ history looks like relief, while the drivers of builder margins (rates, price cuts, and incentives) are still moving in the wrong direction.
ITB also holds the weaker-margin builders along with the stronger ones, and it charges an expense ratio of 0.37%. D.R. Horton looks better positioned than most of the group, because it has the widest margin buffer and planned buybacks of about $2.5 billion this fiscal year.
You can check this view yourself at the next pending home sales report on Wednesday, Nov. 18 at 10 a.m. ET. If the index stays near 66.0 and D.R. Horton closes below $130.40, the Oct. 20 rally will likely look early.
Contact [email protected] for any questions or corrections.
A month has gone by since the last earnings report for Lennar (LEN - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Lennar due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Lennar Corporation before we dive into how investors and analysts have reacted as of late.
Lennar Q3 Earnings Miss Estimates on Housing Weakness, Revenues LagLennar reported weaker-than-expected third-quarter fiscal 2026 (ended Aug. 31) results. The quarter’s adjusted earnings and total revenues missed the Zacks Consensus Estimate and declined year over year.
Ongoing softness in housing demand, driven by elevated mortgage rates, led to lower deliveries and a weaker average sales price (ASP) for homes delivered, which drove the quarterly decline.
LEN’s Quarterly NumbersAdjusted earnings of $1.23 per share missed the Zacks Consensus Estimate of $1.29 by 4.7% and fell 38.5% from $2.00 per share a year ago.
Total revenues of $8.05 billion missed the consensus estimate of $8.33 billion by 3.4% and declined 8.6% year over year. Lower deliveries and home prices weighed on results amid affordability pressure. Inventory turn stood at 2.4 times.
Lennar’s Homebuilding HighlightsHomebuilding revenues decreased 6% year over year to $7.76 billion from $8.25 billion. Home sales revenue fell to $7.73 billion from $8.21 billion, reflecting weaker pricing and fewer closings.
Home deliveries declined 3.4% to 20,840 from 21,584 but remained within management's guidance of 20,500-21,500 homes. The ASP of homes delivered decreased 2.9% to $372,000 from $383,000. Management said pricing reflected about 12% in incentives, along with base-price adjustments aimed at sustaining volume.
New orders fell 9.2% year over year to 20,879 homes. Their dollar value decreased 11.1% to $7.5 billion from $8.44 billion, while the ASP of new orders declined to $359,000 from $367,000. Backlog slipped 0.6% to 16,857 homes from 16,953. The backlog value declined 4.6% to $6.35 billion from $6.65 billion, while the average sales price in backlog fell to $376,000 from $392,000. Active communities increased to 1,713 from 1,664.
Gross margin on home sales contracted to 15.8% from 17.5% a year ago. Lower revenue per square foot and higher land costs contributed to the decline, partly offset by lower construction costs from ongoing cost-saving initiatives. Selling, general and administrative (SG&A) expenses rose to 9.2% of home sales from 8.2%, mainly because of lower revenue leverage and higher marketing and selling costs. Net margin on home sales was 6.6%. Construction cost per square foot improved 6% year over year, while cycle time fell to a record 116 days from 126 days.
Lennar's Financial Services & Other Segments DivergeFinancial Services revenues declined to $226.1 million from $314.2 million a year ago. Operating earnings decreased to $129 million from $177 million. The current quarter included $39 million of net one-time items, primarily tied to a litigation accrual reversal following a court judgment.
Multifamily revenues fell to $38.5 million from $228.5 million, while its operating loss narrowed to $3 million from $16 million.
Lennar Other revenues rose to $22 million from $13.9 million, but the segment posted an $84 million operating loss against $62 million of operating earnings a year ago, largely due to $53 million of mark-to-market losses on technology investments.
LEN's Balance Sheet Shows Higher LeverageHomebuilding cash and cash equivalents totaled $1.15 billion at quarter-end. Lennar had $650 million of borrowings outstanding under its $3.1 billion revolving credit facility. Homebuilding debt to total capital was 16.6% compared with 13.5% a year earlier.
The company repurchased 3 million shares for $256 million at an average price of $85.49 and redeemed $400 million of 5.25% senior notes due June 2026. Of roughly 488,000 homesites owned and controlled, less than 2.5% were owned on the balance sheet.
Lennar's Q4 Outlook Reflects Continued Market PressureFor the fourth quarter of fiscal 2026, Lennar expects new orders of 19,500-20,500 homes (from 20,018 in the year-ago quarter) and deliveries of 22,000-23,000 homes (from 23,034 in the year-ago quarter). The ASP is projected between $370,000 and $380,000 (from $386,000 in the year-ago quarter).
Gross margin on home sales is expected at 15.5-16% (from 17% in the year-ago quarter), while SG&A is projected at 8.7-9% of home sales (from 7.8% in the year-ago quarter). The EPS is expected to be approximately $1.30-$1.65. Management reduced its full-year fiscal 2026 delivery target to about 80,000-81,000 homes from 82,000-83,000, citing continued interest-rate pressure and weaker market conditions. Financial Services operating earnings are forecast at $90-$95 million.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -26.5% due to these changes.
VGM ScoresAt this time, Lennar has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Lennar has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
LOS ANGELES, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, continues its investigation on behalf of Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN) investors concerning the Company’s possible violations of the federal securities laws.
IF YOU ARE AN INVESTOR WHO LOST MONEY ON LENNAR CORPORATION (LEN), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
What Happened?
On October 2, 2026, Hunterbrook Media published a report alleging, among other things, that Lennar Corporation reported 20,840 home deliveries for the third quarter against guidance of 20,500 to 21,500 deliveries. According to the report, Lennar Corporation exceeded the low end of its third-quarter delivery guidance by 340 homes only because Millrose Properties, Inc. purchased approximately 356 Lennar Corporation homes in the final week of the quarter.
On this news, Lennar's stock fell $5.37 or 6.73%, to close at $74.44 on October 5, 2026, thereby injuring investors.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles H. Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
Whistleblower Notice
Persons with non-public information regarding Lennar Corporation should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].
About Glancy Prongay Wolke & Rotter LLP
Glancy Prongay Wolke & Rotter LLP (“GPWR”) is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. GPWR has been consistently ranked in the Top 50 Securities Class Action Settlements by ISS Securities Class Action Services. In 2018, GPWR was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements.
With four offices across the country, GPWR’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPWR’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPWR’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles, CA 90067
Charles H. Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
BENSALEM, Pa., Oct. 15, 2026 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith continues its investigation on behalf of Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN) investors concerning the Company’s possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN LENNAR CORPORATION (LEN), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On October 2, 2026, Hunterbrook Media published a report alleging, among other things, that Lennar Corporation reported 20,840 home deliveries for the third quarter against guidance of 20,500 to 21,500 deliveries. According to the report, Lennar Corporation exceeded the low end of its third-quarter delivery guidance by 340 homes only because Millrose Properties, Inc. purchased approximately 356 Lennar Corporation homes in the final week of the quarter.
On this news, Lennar's stock fell $5.37 or 6.73%, to close at $74.44 on October 5, 2026, thereby injuring investors.
Contact Us To Participate or Learn More:
If you purchased Lennar Corporation securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847 [email protected]
www.howardsmithlaw.com
LOS ANGELES, Oct. 14, 2026 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz continues its investigation of Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN) on behalf of investors concerning the Company’s possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO LOST MONEY ON LENNAR CORPORATION (LEN), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.
What Is The Investigation About?
On October 2, 2026, Hunterbrook Media published a report alleging, among other things, that Lennar Corporation reported 20,840 home deliveries for the third quarter against guidance of 20,500 to 21,500 deliveries. According to the report, Lennar Corporation exceeded the low end of its third-quarter delivery guidance by 340 homes only because Millrose Properties, Inc. purchased approximately 356 Lennar Corporation homes in the final week of the quarter.
On this news, Lennar's stock fell $5.37 or 6.73%, to close at $74.44 on October 5, 2026, thereby injuring investors.
Contact Us To Participate or Learn More:
If you purchased Lennar Corporation securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Call us at: 310-914-5007
Email us at: [email protected]
Visit our website at: www.frankcruzlaw.com.
Follow us for updates on Twitter at twitter.com/FRC_LAW.
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz
310-914-5007 [email protected]
www.frankcruzlaw.com
NEW YORK--(BUSINESS WIRE)---- $LEN #ClassActionLawsuit--The law firm of Kirby McInerney LLP reminds investors of its investigation on behalf of Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN) investors concerning the Company's and/or members of its senior management's possible violation of the federal securities laws or other unlawful business practices.[LEARN MORE ABOUT THE FIRM'S INVESTIGATION]What Happened?On October 2, 2026, Hunterbrook Media LLC published a report entitled “Exclusive: Lennar's Big New Custom.
JGP Wealth Management LLC raised its holdings in shares of Lennar Corporation (NYSE:LEN – Free Report) by 13.5% in the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 63,537 shares of the construction company’s stock after purchasing an additional 7,577 shares during the period. JGP Wealth Management LLC’s holdings in Lennar were worth $5,184,000 as of its most recent SEC filing.
Several other large investors have also recently made changes to their positions in the business. Janus Henderson Group PLC grew its stake in shares of Lennar by 19.7% in the 1st quarter. Janus Henderson Group PLC now owns 2,546,970 shares of the construction company’s stock worth $221,176,000 after buying an additional 419,745 shares during the last quarter. Swiss National Bank increased its position in Lennar by 4.8% during the 1st quarter. Swiss National Bank now owns 601,468 shares of the construction company’s stock valued at $52,231,000 after buying an additional 27,500 shares in the last quarter. River Road Asset Management LLC raised its stake in Lennar by 10.3% during the fourth quarter. River Road Asset Management LLC now owns 461,696 shares of the construction company’s stock valued at $47,462,000 after buying an additional 43,186 shares during the last quarter. Nan Shan Life Insurance Co. Ltd. raised its stake in Lennar by 6,292.5% during the second quarter. Nan Shan Life Insurance Co. Ltd. now owns 328,000 shares of the construction company’s stock valued at $29,681,000 after buying an additional 322,869 shares during the last quarter. Finally, California Public Employees Retirement System raised its stake in Lennar by 2.3% during the first quarter. California Public Employees Retirement System now owns 313,354 shares of the construction company’s stock valued at $27,212,000 after buying an additional 7,103 shares during the last quarter. 81.10% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Ratings Changes Several brokerages have recently weighed in on LEN. Truist Financial reduced their price target on Lennar from $80.00 to $75.00 and set a “hold” rating for the company in a report on Wednesday, September 16th. Morgan Stanley initiated coverage on shares of Lennar in a research report on Thursday, October 1st. They set an “underweight” rating and a $65.00 price objective on the stock. Seaport Research Partners reduced their price objective on shares of Lennar from $74.00 to $70.00 and set a “sell” rating for the company in a research note on Monday, September 21st. JPMorgan Chase & Co. decreased their target price on shares of Lennar from $80.00 to $77.00 and set an “underweight” rating for the company in a report on Tuesday, June 16th. Finally, Benchmark upgraded shares of Lennar to a “hold” rating in a report on Thursday, September 3rd. One research analyst has rated the stock with a Buy rating, eight have given a Hold rating and ten have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $79.00.
View Our Latest Stock Report on LEN Lennar Trading Down 2.8% Lennar stock opened at $74.52 on Tuesday. Lennar Corporation has a one year low of $73.75 and a one year high of $133.76. The business’s fifty day moving average is $82.68 and its 200 day moving average is $86.27. The stock has a market capitalization of $17.73 billion, a PE ratio of 14.09, a price-to-earnings-growth ratio of 2.89 and a beta of 1.36. The company has a debt-to-equity ratio of 0.20, a current ratio of 4.94 and a quick ratio of 0.69.
Lennar (NYSE:LEN – Get Free Report) last issued its earnings results on Wednesday, September 16th. The construction company reported $1.23 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.29 by ($0.06). Lennar had a return on equity of 6.15% and a net margin of 4.09%. The company had revenue of $8.05 billion during the quarter, compared to analysts’ expectations of $8.32 billion. During the same quarter in the prior year, the business posted $2.00 EPS. The company’s revenue for the quarter was down 8.7% compared to the same quarter last year. On average, sell-side analysts predict that Lennar Corporation will post 4.87 EPS for the current year.
Lennar Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, October 22nd. Stockholders of record on Wednesday, October 7th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Wednesday, October 7th. Lennar’s dividend payout ratio (DPR) is 37.81%.
Insider Activity In other news, major shareholder Berkshire Hathaway Inc acquired 1,708,095 shares of the business’s stock in a transaction that occurred on Friday, October 2nd. The stock was bought at an average price of $79.44 per share, with a total value of $135,691,066.80. Following the completion of the acquisition, the insider directly owned 28,438,045 shares of the company’s stock, valued at approximately $2,259,118,294.80. The trade was a 6.39% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders acquired 7,502,276 shares of company stock valued at $595,303,287. Company insiders own 10.05% of the company’s stock.
Lennar Company Profile (Free Report)
Lennar Corporation (NYSE: LEN) is a homebuilding company that designs, constructs and sells single-family homes and, through its multifamily operations, develops apartment communities. Its residential offerings generally include homes across a range of sizes and prices, serving first-time, move-up and active-adult buyers.
The company also provides related services through businesses involved in mortgage financing, title and closing services, insurance and other real estate activities. Lennar develops residential communities and manages land acquisition, planning and construction as part of its integrated homebuilding model.
Founded in 1954, Lennar has expanded from its origins in South Florida into a national homebuilder serving numerous markets across the United States.
Further Reading Five stocks we like better than Lennar Salesforce Just Got a Rare Double Upgrade—What Changed? OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit 3 REITs That May Win in a Higher Interest Rate Environment Want to see what other hedge funds are holding LEN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lennar Corporation (NYSE:LEN – Free Report).
Receive News & Ratings for Lennar Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lennar and related companies with MarketBeat.com's FREE daily email newsletter.
Boston, Massachusetts--(Newsfile Corp. - October 13, 2026) - Block & Leviton is investigating Lennar (NYSE: LEN) for potential securities law violations. Investors who have lost money in their Lennar investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/len.
What is this all about?
Block & Leviton is investigating whether Lennar may have misled investors about the strength of its home deliveries. Lennar reported fiscal third-quarter deliveries of 20,840 homes, above the 20,500 it initially forecast, at a time when the housing market was weakening. A report found that Millrose Properties bought hundreds of Lennar homes in the final week of that quarter, and that without those purchases Lennar's deliveries may have fallen below its target. Lennar spun off Millrose in 2025, and Lennar's CEO reportedly holds significant voting power over it. Then on October 5, 2026, Lennar's stock fell after an analyst downgraded Millrose, citing uncertainty about its shift toward buying build-to-rent homes from Lennar, its largest customer. Block & Leviton is investigating.
Who is eligible?
Anyone who purchased Lennar common stock and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.
What is Block & Leviton doing?
Block & Leviton is investigating whether the Company committed securities law violations and may file an action to attempt to recover losses on behalf of investors who have lost money.
What should you do next?
If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at [email protected], or by phone at (888) 256-2510.
Whistleblower?
If you have non-public information about Lennar, you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at [email protected] or by phone at (888) 256-2510.
Why should you contact Block & Leviton?
Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, call (888) 256-2510 or email [email protected] with any questions.
This notice may constitute attorney advertising.
CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (888) 256-2510
Email: [email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/318707
Source: Block & Leviton LLP
Ready to Announce with Confidence?
Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
When Ray Dalio told investors to scrutinize free cash flow, he wasn't just talking about stocks. A $6 trillion rate shock is quietly reshaping homebuilder margins, gold vaults, and AI balance sheets in ways most portfolios aren't built to absorb.
Ray Dalio spoke at the Milken Institute Asia Summit on Oct. 8. He warned that strong corporate earnings have helped stocks hold up as interest rates rise, and that the edge stocks hold over bonds is shrinking. His advice to investors was to look at free cash flow alongside earnings. Higher borrowing costs are now moving out of Washington and into housing, gold and AI spending, which makes that advice relevant.
How a $6 Trillion Federal Problem Reaches Your Portfolio The Congressional Budget Office recently said that if rates average 1.5 percentage points above the CBO’s February baseline, deficits from 2026 through 2036 grow by $6 trillion. Higher interest on existing debt accounts for $4.9 trillion of that. Financing the extra borrowing adds another $1.1 trillion. Even before any rate shock, net interest is expected to rise from 3.3% of GDP in 2026 to 4.6% in 2036.
Markets are already pricing that pressure. The 10-year Treasury yield reached 5.22% on Oct. 8. Its one-year low was 3.97% in February. The Fed raised its upper target to 4.00% on Sept. 17.
Homebuilders Are Taking the First Hit For its fiscal third quarter, Lennar (NYSE:LEN | LEN Price Prediction) reported revenue of $8.05 billion, down 8.5% from a year earlier. Its SEC filing shows homebuilding gross margin fell to 15.8% from 17.5%. Incentives ran at 12%, and in many markets almost 50% of visitors can’t immediately qualify for a mortgage. CEO Stuart Miller told analysts, “The Federal Reserve’s assistance is clearly off the table for practical purposes, and not a near-term source of relief.” The stock is down 23.73% year to date.
Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) still added 2.42 million Lennar shares for about $193 million, raising its stake to roughly 12%. Lennar’s land-light model helps explain why Berkshire is willing to wait. The company owns about 2% of its homesites, and homebuilding debt is 16.6% of capital.
D.R. Horton (NYSE:DHI) has held up better. Its home sales gross margin was 20.7%, and its shares are down 5.51% this year. Its mortgage arm gave backlog buyers a 4.9% rate when the market rate was about 6.5%. Even so, cancellations rose to 20% from 17%. Existing home sales fell to an annualized 3.98 million, the lowest reading of the past year.
Gold Investors Kept Buying Through the Selloff World Gold Council data show physically backed gold ETFs took in a record $31 billion in the third quarter. September alone brought $10 billion, even though gold fell 8.5% that month and the 10-year yield rose 53 basis points. Global holdings hit a record 4,256 metric tons. Spot gold recently traded near $4,194 per ounce.
Newmont (NYSE:NEM) received an average gold price of $4,414 per ounce and produced record second-quarter free cash flow of $2.21 billion. Wheaton Precious Metals (NYSE:WPM) grew second-quarter revenue 85% to $929 million. Management says the company generates more than $200 million in free cash flow each month, which it is using to pay down debt from its $4.3 billion Antamina stream. Newmont is up 18.8% this year, and Wheaton is up 18.49%. Wheaton has dropped 11.55% over the past month.
AI Spenders Face Dalio’s Free Cash Flow Test Microsoft (NASDAQ:MSFT) shows why free cash flow matters. In fiscal 2026, net income rose 31.34%. Over the same year, capex climbed 79.62% to $115.95 billion and free cash flow fell 6.46%. Commercial remaining performance obligations of $678 billion support the expansion. The stock trades at about 30 times earnings.
NVIDIA (NASDAQ:NVDA) produced $21.34 billion in free cash flow on $96.22 billion of quarterly revenue. It also helps fund its customers. It has limited guarantee obligations of $108.5 billion and is working with Apollo, BlackRock, Blackstone and others to raise more than $500 billion in third-party capital. At 46 times earnings, that financing exposure needs a close look if rates stay high. The capital has to flow somewhere, and much of it lands with the power, cooling, and networking suppliers behind the data centers (we highlighted seven of them in a free report here).
What to Watch Before Year-End Lennar guided fourth-quarter gross margin to 15.5% to 16.0%. That guidance assumed mortgage rates near 6.8%, and rates have since moved higher. NVIDIA needs to hit its $108.0 billion revenue guide. The 10-year yield will show whether gold’s ETF bid, homebuilder margins, and AI valuations can keep absorbing a rising cost of capital.
Contact [email protected] for any questions or corrections.
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN) investors concerning the Company's possible violations of federal securities laws.IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN LENNAR CORPORATION (LEN), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at ho.
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN) investors concerning the Company's possible violations of the federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON LENNAR CORPORATION (LEN), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS. What Happened? On Octob.
Securities Fraud Investigation Into Lennar Corporation (LEN) Announced -- Shareholders Who Lost Money Urged To Contact Glancy Prongay Wolke & Rotter LLP, a Leading Securities Fraud Law Firm Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN) investors concerning the Company’s possible violations of the federal securities laws.
IF YOU ARE AN INVESTOR WHO LOST MONEY ON LENNAR CORPORATION (LEN), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
What Happened?
On October 2, 2026, Hunterbrook Media published a report alleging, among other things, that Lennar Corporation reported 20,840 home deliveries for the third quarter against guidance of 20,500 to 21,500 deliveries. According to the report, Lennar Corporation exceeded the low end of its third-quarter delivery guidance by 340 homes only because Millrose Properties, Inc. purchased approximately 356 Lennar Corporation homes in the final week of the quarter.
On this news, Lennar's stock fell $5.37 or 6.73%, to close at $74.44 on October 5, 2026, thereby injuring investors.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
Charles H. Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
Whistleblower Notice
Persons with non-public information regarding Lennar Corporation should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].
About Glancy Prongay Wolke & Rotter LLP
Glancy Prongay Wolke & Rotter LLP (“GPWR”) is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. GPWR has been consistently ranked in the Top 50 Securities Class Action Settlements by ISS Securities Class Action Services. In 2018, GPWR was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements.
With four offices across the country, GPWR’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPWR’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPWR’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261008691145/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Boston, Massachusetts--(Newsfile Corp. - October 8, 2026) - Block & Leviton is investigating Lennar (NYSE: LEN) for potential securities law violations. Investors who have lost money in their Lennar investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/len.
What is this all about?
Block & Leviton is investigating whether Lennar may have misled investors about the strength of its home deliveries. Lennar reported fiscal third-quarter deliveries of 20,840 homes, above the 20,500 it initially forecast, at a time when the housing market was weakening. A report found that Millrose Properties bought hundreds of Lennar homes in the final week of that quarter, and that without those purchases Lennar's deliveries may have fallen below its target. Lennar spun off Millrose in 2025, and Lennar's CEO reportedly holds significant voting power over it. Then on October 5, 2026, Lennar's stock fell after an analyst downgraded Millrose, citing uncertainty about its shift toward buying build-to-rent homes from Lennar, its largest customer. Block & Leviton is investigating.
Who is eligible?
Anyone who purchased Lennar common stock and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.
What is Block & Leviton doing?
Block & Leviton is investigating whether the Company committed securities law violations and may file an action to attempt to recover losses on behalf of investors who have lost money.
What should you do next?
If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at [email protected], or by phone at (888) 256-2510.
Whistleblower?
If you have non-public information about Lennar, you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at [email protected] or by phone at (888) 256-2510.
Why should you contact Block & Leviton?
Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, call (888) 256-2510 or email [email protected] with any questions.
This notice may constitute attorney advertising.
CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (888) 256-2510
Email: [email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/318080
Source: Block & Leviton LLP
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
LEN Investors with $100,000 in Losses Have Opportunity to Join Lennar Corporation Fraud Investigation with SBS Law Schall, Brown & Schwartz LLP (“SBS”), a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Lennar Corporation (“Lennar” or “the Company”) (NYSE: LEN) for violations of the securities laws.
INVESTIGATION DETAILS: The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Lennar is the subject of a research report published by Hunterbrook Media on October 2, 2026, titled: “Exclusive: Lennar’s Big New Customer Is Its Own Spinoff, Millrose.” According to the report, Lennar’s own spinoff company, Millrose, bought Lennar homes worth more than $200 million in about one month, alleging that “these sales were the difference between meeting and missing” its delivery forecast. Based on this news, shares of Lennar fell by more than 6.7% on October 5, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall or David Schwartz of Schall, Brown & Schwartz LLP, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
WHY SBS? Schall, Brown & Schwartz LLP represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation. Bringing together the extensive experience and diverse skillsets of founding partners Brian Schall, Andrew Brown, and David Schwartz, SBS is dedicated to aggressively advocating for every investor.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261007880319/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
LOS ANGELES--(BUSINESS WIRE)---- $LEN--LEN Investors with $100,000 in Losses Have Opportunity to Join Lennar Corporation Fraud Investigation with SBS Law.
Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Lennar (LEN) To Contact Him Directly To Discuss Their Options
If you purchased or acquired stock in Lennar and would like to discuss your legal rights, contact Bragar Eagel & Squire partners Brandon Walker or Melissa Fortunato by email at [email protected] or by telephone at (212) 355-4648.
Click here to participate in the action.
NEW YORK, Oct. 07, 2026 (GLOBE NEWSWIRE) --
What’s Happening:
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN) on behalf of Lennar stockholders. Our investigation concerns whether Lennar has violated the federal securities laws and/or engaged in other unlawful business practices.
Investigation Details:
On October 2, 2026, Hunterbrook Media LLC published a report entitled “Exclusive: Lennar’s Big New Customer Is Its Own Spinoff, Millrose,” revealing that Millrose, the spinoff company Lennar created in 2025 to hold its land, bought over $200 million of Lennar homes in about a month and has become the largest buyer of Lennar homes in the last month. The report asserts that “the purchases arrived just when Lennar needed them” and that “these sales were the difference between meeting and missing [its delivery forecast],” as Millrose purchased 356 homes in the last week of Lennar’s third quarter 2026, and Lennar beat its delivery forecast by 340 homes. The report also states that Millrose has been purchasing Lennar homes for higher prices than individual and other institutional buyers and is renting those homes out at a loss. On this news, the price of Lennar shares declined by $5.37 per share, or approximately 6.73%, from $79.81 per share on October 2, 2026, to close at $74.44 on October 5, 2026.
Next Steps:
If you purchased or otherwise acquired Lennar shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.
LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON LENNAR CORPORATION (LEN), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On October 2, 2026, Hunterbrook Media published a report alleging, among.
Millrose Properties Inc., spun out of Lennar, serves as an asset-light land bank with deep operational and financial ties to LEN. MRP's abrupt pivot into rental homes triggered a short-seller report, erasing $1.4B in market cap. We dive in to assess the damage and tell you why we are long.
Key Takeaways Lennar's home-sale revenues fell 7% as deliveries declined 2% and ASP dropped 5% through August 2026.LEN cut construction costs 6% and improved cycle time to a record 116 days in fiscal 2026.Lennar expects fourth-quarter fiscal 2026 deliveries of 22,000-23,000 homes and a gross margin of 15.5-16%. Lennar Corporation (LEN - Free Report) is deliberately prioritizing housing volume over near-term margin expansion as affordability challenges continue to weigh on the U.S. housing market. The strategy is increasingly visible in its year-to-date results, raising the question of whether the tradeoff will create stronger long-term returns.
For the nine months ended August 2026, LEN’s home-sale revenues declined 7% year over year to $21.6 billion, as deliveries fell 2% to 58,222 and average selling price (ASP) declined 5% to $372,000. Gross margin contracted to 15.5% from 18%, while SG&A increased to 9.4% of revenues from 8.5%. Financial Services operating earnings also fell to $320.3 million from $476.9 million, reflecting lower mortgage volumes and profit per locked loan.
Still, Lennar’s strategy is generating meaningful operational gains. In the third quarter of fiscal 2026, construction costs fell 6% year over year to approximately $80 per square foot, while cycle time improved to a record 116 days from 126 days a year ago. Completed unsold inventory also declined to 1.8 homes per community. However, the backdrop remains challenging as the U.S. 30-year mortgage rates recently climbed to 7.28% (in September), while September 2026 pending home sales fell 8.5% year over year, underscoring persistent affordability pressure.
Given the current market backdrop, LEN expects fourth-quarter fiscal 2026 deliveries of 22,000-23,000 homes (down from 23,034 in the year-ago quarter) and a gross margin of 15.5-16% (down from 17% in the year-ago quarter). Its land-light model, with 98% of homesites controlled through third parties, supports balance-sheet flexibility.
Lennar’s volume-first strategy is pressuring near-term profitability, but falling construction costs, faster cycle times and disciplined land exposure could make the sacrifice worthwhile if housing affordability eventually improves.
Lennar vs. PulteGroup & D.R. Horton: Balance Between Price & Pace?Lennar, alongside other renowned homebuilders PulteGroup, Inc. (PHM - Free Report) and D.R. Horton, Inc. (DHI - Free Report) , are using incentives to navigate a difficult U.S. housing market, but the impact on profitability differs.
LEN is taking the most explicit volume-first approach, using roughly 12% incentives and pricing adjustments to sustain affordability. Meanwhile, PulteGroup is balancing price and pace, with second-quarter 2026 incentives at 10.4% and gross margin at 25%, down from 27% a year ago but up sequentially. Its orders rose 6%, suggesting incentives are supporting demand. D.R. Horton also expects elevated incentives as affordability remains strained, with third-quarter fiscal 2026 closings up 4%, but earnings down 12% and gross margin under pressure.
With mortgage rates recently reaching 7.28%, affordability pressures are likely to persist. Lennar offers stronger volume and cost-efficiency potential, while PulteGroup's higher margins and D.R. Horton's scale provide greater profitability cushions.
LEN Stock’s Price Performance & Valuation TrendThe Florida-based homebuilder’s shares have declined 12.6% over the past six months, underperforming the Zacks Building Products - Home Builders industry, the broader Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
LEN stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 13.84, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend of LENLEN’s earnings estimates for fiscal 2026 and fiscal 2027 reflect a declining trend over the past 30 days, currently at $4.95 per share and $5.64 per share, respectively. The estimated figures for fiscal 2026 imply a year-over-year decline of 38.6%, while the same for fiscal 2027 reflects an improvement of 14%.
Image Source: Zacks Investment Research
Lennar currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mortgage rates are closing in on a threshold that forecasters said would not arrive until next year, and homebuilders are already making painful tradeoffs to keep buyers at the table.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
A $400,000 mortgage now costs $2,786 a month in principal and interest. A year ago, the same loan cost $2,460, so the borrower pays $326 more each month, or $3,912 a year. The reason is that the average 30-year fixed rate rose to 7.46%, a one-year high, from 7.38%.
Freddie Mac’s weekly survey showed 7.28% on October 1, and a leading daily lender-quote index already reads 7.56%, above the 7.5% mark. Builder stocks went up anyway. On October 6, 2026, Lennar (NYSE:LEN | LEN Price Prediction) rose 3.99% to $77.41, and the iShares U.S. Home Construction ETF (CBOE:ITB) gained 1.66% to $87.
Why Rate Surveys Disagree Weekly surveys average lender quotes over several days and run behind the market. Daily indices reprice every afternoon. If you’re shopping for a loan, expect your quote to be near the daily number.
Freddie Mac’s figure rose from 7.03% the week before. Over the same period, the daily index eased 0.05 from 7.61%, although a year ago it stood at 6.38%.
Treasury Yields Set Your Mortgage Quote The 10-year Treasury yield closed at 5.27%, its highest close in 24 years. Mortgage rates track that yield much more closely than the federal funds rate. This gap means Fed cuts do not translate directly into lower mortgage rates.
The 10-year moves on inflation expectations and on how much debt the Treasury has to sell. Borrowers are already pulling back. Applications fell 6.0% in the latest weekly survey, and refinancing was down 56% from a year earlier.
Lennar Gives Up Margin to Keep Volume In Lennar’s fiscal third quarter, adjusted EPS of $1.23 missed the $1.2963 consensus. Homebuilding gross margin fell to 15.8% from 17.5%. New orders dropped 9%.
CEO Stuart Miller said the 30-year rate was “at approximately 6.8% at quarter end and even higher since.” On the earnings call, he stated: “we are compromising margin in order to maintain volume.”
Most margin goes into rate buydowns, where the builder pays the lender upfront so the buyer gets a lower rate. Incentives came to about 12.0% of sales. Higher rates make buydowns more expensive. Full-year delivery guidance was cut to 80,000 to 81,000 homes.
ITB spreads the same pressure across the whole builder group for a 0.37% expense ratio. It is down 8.62% for the year, compared with 23.52% for Lennar.
Rate Forecasts Already Look Out of Date In September, two major forecasters projected 6.8% by year-end, below every current reading. Lennar issued fourth-quarter margin guidance of 15.5% to 16.0% when the 30-year rate was approximately 7%.
Existing-home sales fell 2.0% in August to an annual rate of 3.98 million. The median price was $429,100. Prices stay high because owners locked into cheap mortgages will not sell.
Rates also explain only part of Lennar’s 6.75% drop over the past week, since a report questioned its land-banking relationship. Meanwhile, Berkshire Hathaway (NYSE:BRK.B) has kept adding to its Lennar stake.
How Lennar Stock Stacks Up Against ITB Now Lennar’s outlook looks weaker than that of the broader builder group. Lennar can close homes at these rates, but every buydown costs more. The stock trades below the $85.49 average price the company paid for buybacks in the third quarter.
ITB offers broader housing exposure than Lennar alone. It has held up far better, and its results depend on the whole builder group rather than on one company’s choice to give up margin.
The next test is Freddie Mac’s October 8 reading. If it comes in above 7.28%, a fourth-quarter margin at or below 15.5% becomes likely. If Lennar climbs back to $85.49 while rates stay this high, this view is wrong.
Contact [email protected] for any questions or corrections.
SummaryLennar Corporation trades at 0.83x book, well below peers, with Berkshire Hathaway now owning about 12% after significant recent purchases.I see fair value for LEN at $90–$100 per share, supported by long-term U.S. housing shortages and Lennar’s asset-light, high-volume strategy.LEN faces near-term margin pressure (15.8% Q3 gross margin), high mortgage rates, and governance questions regarding related-party sales to Millrose.Despite risks, LEN’s balance sheet, scale, and patient capital position it for recovery; current valuation already discounts substantial negative sentiment. JHVEPhoto/iStock Editorial via Getty Images
Lennar Corporation (LEN) closed at $74.44 on Monday, October 5, a new 52-week low and 44% below the $133.76 high. The stock now trades at about 0.83x book value, and it is the only large public homebuilder I follow priced
6.16K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of LEN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
NEW YORK, Oct. 06, 2026 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against Lennar Corporation (“Lennar” or the “Company”) (NYSE: LEN). The investigation concerns whether the Company and/or members of its senior management may have violated federal securities laws or engaged in other unlawful business practices. If you purchased or otherwise acquired Lennar securities, please contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below, to learn more about your rights.
[LEARN MORE ABOUT POTENTIAL SECURITIES FRAUD CLAIMS]
What Happened?
On October 2, 2026, Hunterbrook Media LLC published a report entitled “Exclusive: Lennar’s Big New Customer Is Its Own Spinoff, Millrose,” revealing that Millrose, the spinoff company Lennar created in 2025 to hold its land, bought over $200 million of Lennar homes in about a month and has become the largest buyer of Lennar homes in the last month. The report asserts that “the purchases arrived just when Lennar needed them” and that “these sales were the difference between meeting and missing [its delivery forecast],” as Millrose purchased 356 homes in the last week of Lennar’s third quarter 2026, and Lennar beat its delivery forecast by 340 homes. The report also states that Millrose has been purchasing Lennar homes for higher prices than individual and other institutional buyers and is renting those homes out at a loss. On this news, the price of Lennar shares declined by $5.37 per share, or approximately 6.73%, from $79.81 per share on October 2, 2026, to close at $74.44 on October 5, 2026.
What Should I Do?
At this stage, no lawsuit has been filed. The investigation is ongoing to determine whether claims may be brought under federal securities laws.
If you purchased or otherwise acquired Lennar securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at [email protected], or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.
[LEARN MORE ABOUT YOUR RIGHTS AS AN INVESTOR]
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found on Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
You are now leaving Barron's websiteBy clicking on the “Proceed” button below, you will be redirected to a third-party website owned and operated by Hong Kong Tiimoot Information Technology Co., Limited. (“HKT”), which is located in Hong Kong. That website operates independently from Barron's and Barron's does not control the website. The privacy practices of HKT are subject to its Privacy Statement, so please read it closely. We are not responsible for HKT's privacy or other data-related practices.
BOSTON, Oct. 05, 2026 (GLOBE NEWSWIRE) -- Block & Leviton is investigating Lennar Corporation (NYSE: LEN) for potential securities law violations. Investors who have lost money in their Lennar investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/len.
What is this all about?
Block & Leviton is investigating whether Lennar may have misled investors about the strength of its home deliveries. Lennar reported fiscal third-quarter deliveries of 20,840 homes, above the 20,500 it initially forecast, at a time when the housing market was weakening. A report found that Millrose Properties bought hundreds of Lennar homes in the final week of that quarter, and that without those purchases Lennar's deliveries may have fallen below its target. Lennar spun off Millrose in 2025, and Lennar's CEO reportedly holds significant voting power over it. Then on October 5, 2026, Lennar's stock fell after an analyst downgraded Millrose, citing uncertainty about its shift toward buying build-to-rent homes from Lennar, its largest customer. Block & Leviton is investigating.
Who is eligible?
Anyone who purchased Lennar common stock and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.
What is Block & Leviton doing?
Block & Leviton is investigating whether the Company committed securities law violations and may file an action to attempt to recover losses on behalf of investors who have lost money.
What should you do next?
If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at [email protected], or by phone at (888) 256-2510.
Whistleblower?
If you have non-public information about Lennar, you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at [email protected] or by phone at (888) 256-2510.
Why should you contact Block & Leviton?
Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, call (888) 256-2510 or email [email protected] with any questions.
This notice may constitute attorney advertising.
CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (888) 256-2510
Email: [email protected]
Lennar Corporation (NYSE:LEN – Get Free Report) announced a quarterly dividend on Wednesday, September 23rd. Shareholders of record on Wednesday, October 7th will be given a dividend of $0.50 per share by the construction company on Thursday, October 22nd. This represents a $2.00 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Wednesday, October 7th.
Lennar has increased its dividend payment by an average of 0.8%per year over the last three years and has raised its dividend annually for the last 1 consecutive years. Lennar has a payout ratio of 17.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Lennar to earn $5.70 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 35.1%.
Lennar Trading Up 0.0% NYSE LEN opened at $79.84 on Monday. The stock has a market cap of $19.23 billion, a PE ratio of 15.09, a PEG ratio of 3.00 and a beta of 1.36. Lennar has a 12 month low of $75.70 and a 12 month high of $133.76. The company’s 50-day moving average price is $83.73 and its 200-day moving average price is $87.01. The company has a current ratio of 4.94, a quick ratio of 0.69 and a debt-to-equity ratio of 0.20.
Lennar (NYSE:LEN – Get Free Report) last posted its quarterly earnings results on Wednesday, September 16th. The construction company reported $1.23 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.06). The company had revenue of $8.05 billion for the quarter, compared to the consensus estimate of $8.32 billion. Lennar had a net margin of 4.09% and a return on equity of 6.15%. The business’s revenue was down 8.7% on a year-over-year basis. During the same period in the prior year, the firm posted $2.00 EPS. Equities research analysts forecast that Lennar will post 4.87 earnings per share for the current year. Insider Transactions at Lennar In related news, major shareholder Berkshire Hathaway Inc acquired 1,381,397 shares of the stock in a transaction dated Friday, September 18th. The stock was acquired at an average cost of $76.48 per share, for a total transaction of $105,649,242.56. Following the completion of the purchase, the insider owned 23,075,025 shares of the company’s stock, valued at approximately $1,764,777,912. This represents a 6.37% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders have purchased 5,083,639 shares of company stock worth $402,669,384. Corporate insiders own 10.05% of the company’s stock.
Institutional Inflows and Outflows A number of hedge funds have recently modified their holdings of LEN. Janus Henderson Group PLC boosted its holdings in Lennar by 19.7% in the first quarter. Janus Henderson Group PLC now owns 2,546,970 shares of the construction company’s stock valued at $221,176,000 after purchasing an additional 419,745 shares during the last quarter. Van Lanschot Kempen Investment Management N.V. raised its stake in shares of Lennar by 90.9% during the 4th quarter. Van Lanschot Kempen Investment Management N.V. now owns 1,963,373 shares of the construction company’s stock worth $201,835,000 after buying an additional 934,856 shares during the period. Swiss National Bank lifted its holdings in Lennar by 4.8% during the first quarter. Swiss National Bank now owns 601,468 shares of the construction company’s stock valued at $52,231,000 after purchasing an additional 27,500 shares in the last quarter. River Road Asset Management LLC boosted its holdings in Lennar by 10.3% in the 4th quarter. River Road Asset Management LLC now owns 461,696 shares of the construction company’s stock worth $47,462,000 after buying an additional 43,186 shares during the last quarter. Finally, Nan Shan Life Insurance Co. Ltd. raised its stake in Lennar by 6,292.5% in the 2nd quarter. Nan Shan Life Insurance Co. Ltd. now owns 328,000 shares of the construction company’s stock valued at $29,681,000 after purchasing an additional 322,869 shares during the last quarter. 81.10% of the stock is owned by institutional investors and hedge funds.
About Lennar (Get Free Report)
Lennar Corporation (NYSE: LEN) is a homebuilding company that designs, constructs and sells single-family homes and, through its multifamily operations, develops apartment communities. Its residential offerings generally include homes across a range of sizes and prices, serving first-time, move-up and active-adult buyers.
The company also provides related services through businesses involved in mortgage financing, title and closing services, insurance and other real estate activities. Lennar develops residential communities and manages land acquisition, planning and construction as part of its integrated homebuilding model.
Founded in 1954, Lennar has expanded from its origins in South Florida into a national homebuilder serving numerous markets across the United States.
See Also Five stocks we like better than Lennar Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning?
Receive News & Ratings for Lennar Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Lennar and related companies with MarketBeat.com's FREE daily email newsletter.
Berkshire Hathaway (BRKB +0.18%) recently completed an acquisition that makes it the nation's fourth-largest homebuilder.
This summer, the investment and insurance conglomerate built by Warren Buffett acquired Taylor Morrison, a Scottsdale, Arizona-based community developer and homebuilder, for $6.8 billion. Berkshire said it would merge Taylor Morrison with Clayton Properties Group, a Berkshire-owned collection of 15 regional and local homebuilders.
The two builders together delivered almost 23,000 site-built homes in 2025 in 21 states and 52 housing markets. Berkshire also owns a $2.2 billion stake in homebuilder Lennar (LEN -4.60%), which amounts to about 11% of that company, and small stakes in NVR (NVR -0.64%) and D.R. Horton (DHI -0.93%), two other homebuilders.
Today's Change
(
0.18
%) $
0.89
Current Price
$
503.54
The housing market continues to struggle The U.S. housing market has been struggling for years due to a shortage of housing supply and, more recently, soaring mortgage rates that have made home purchases impossible for many Americans. The average 30-year mortgage rate has climbed to almost 7.3% this year, more than one percentage point higher than at the beginning of 2026 and well more than double what the rate was five years ago.
Because of insufficient home construction in the years following the 2008 financial crisis -- which itself resulted from a housing bubble collapse in the U.S. -- there is a huge national shortage of homes. Estimates of that shortage range from 3.7 million homes to as many as 10 million. By any estimate, it's huge.
It's also a huge problem, and both political parties in Washington are trying to remedy it. In July, Congress passed a bipartisan bill called the 21st Century ROAD to Housing Act that is intended to make it easier to build and finance houses. But many industry analysts say it doesn't do enough and won't make a huge dent in the housing shortage.
Image source: Getty Images.
Berkshire, of course, is known to have a very long-term investment horizon. It also likes to buy depressed assets that it believes are undervalued by the market. It purchased $53.9 million of Lennar shares in late September, a stock that is down about 20% this year.
Premium Feature
Moneyball Superscore
64/100
Today's Change
(
-4.60
%) $
-3.67
Current Price
$
76.14
"We don't envision a quick recovery there," Berkshire CEO Greg Abel told CNBC last month. "But we do see it as an industry that we definitely want to be invested in, and we're invested for the long-term."
I've written extensively about the housing market and companies in it, and I haven't been optimistic about them. But Berkshire's growing housing portfolio suddenly makes housing stocks much more intriguing.
NEW YORK, Oct. 05, 2026 (GLOBE NEWSWIRE) -- Julie & Holleman LLP is investigating potential claims on behalf of stockholders of Millrose Properties, Inc. (NYSE: MRP) relating to the company’s relationship and transactions with Lennar Corporation (NYSE: LEN).
Millrose was spun off from Lennar in 2025. Despite the separation, the companies continue to have significant business and other relationships, and the Miller family, which is closely associated with Lennar, holds substantial voting power at Millrose.
Recent reports concerning transactions between Millrose and Lennar have raised questions about potential conflicts of interest and whether Millrose and its directors and officers have acted in the best interests of Millrose and its stockholders.
Julie & Holleman is investigating these matters, including the relationship between Millrose and Lennar and transactions between the two companies.
If you own Millrose Properties stock and would like to learn more about the investigation, please visit https://julieholleman.com/millrose-properties/ or contact partner Scott Holleman at [email protected] or 929-415-1020.
There is no cost or obligation to speak with us.
FIRM INFORMATION
Julie & Holleman is a boutique law firm that focuses on shareholder litigation, including derivative actions, mergers and acquisitions cases, securities fraud class actions, and corporate investigations. The firm’s attorneys litigate in state and federal courts across the nation and have helped secure hundreds of millions of dollars for aggrieved companies and their shareholders. For more information about the firm, please visit www.julieholleman.com. This notice may constitute attorney advertising.
Julie & Holleman LLP
W. Scott Holleman, Esq.
157 East 86th Street
4th Floor
New York, NY 10028
(929) 415-1020
www.julieholleman.com
Key Takeaways Lennar's home-sales revenues fell 7% as deliveries declined 2% and ASP dropped 5% in fiscal 2026.LEN's homebuilding gross margin fell to 15.5% from 18%, pressured by lower revenues and higher land costs.Lennar cut its 2026 delivery target to 80,000-81,000 homes amid persistent interest-rate pressure. Lennar Corporation (LEN - Free Report) stock plunged 22.4% year to date, underperforming the Zacks Building Products - Home Builders industry, the broader Zacks Construction sector and the S&P 500 Index.
This Florida-based homebuilder is facing a tougher housing backdrop as higher mortgage rates, affordability constraints and weaker consumer confidence restrain demand. The Federal Reserve's recent benchmark rate hike by 25 basis points to 3.75% and 4% highlights growing concerns due to oil price uncertainty and other global risks. As the inflation rate is currently hovering over 2%, another rate hike later in 2026 is expected to rein in the inflation rate close to its desired level.
Notably, LEN stock even underperformed a few of the renowned homebuilders during the year-to-date period, including PulteGroup, Inc. (PHM - Free Report) , Meritage Homes Corporation (MTH - Free Report) and D.R. Horton, Inc. (DHI - Free Report) . During this period, the share price performance of PulteGroup, Meritage Homes and D.R. Horton declined 1.4%, 3% and 6.3%, respectively.
Image Source: Zacks Investment Research
Although Lennar’s asset-light land model, faster cycle times and lower construction costs support efficiency, softer demand, compressed profitability and reduced earnings visibility are overshadowing the supporting factors.
Persistent Housing-Market HeadwindsLennar continues to operate against a difficult U.S. housing backdrop characterized by elevated mortgage rates, affordability constraints and increased resale-home competition. Management noted that near-term interest-rate relief appears unlikely, while existing-home inventory has increased, particularly in Texas and Florida, intensifying competition for buyers. Per Freddie Mac, the 30-year fixed mortgage rate surged from 6.16% in January 2026 to 7.28% in September 2026. High borrowing costs are forcing builders to use pricing adjustments, incentives and mortgage-rate buydowns to keep homes affordable. Lennar itself acknowledged that it continues to price to market and offer incentives to maintain volume. Apart from Lennar, homebuilders like PulteGroup, Meritage Homes and D.R. Horton are facing the blow from high mortgage rates, resulting in a weak housing market.
Meanwhile, rising land costs and tighter labor availability in certain markets are adding further pressure. Even though the company believes underlying housing demand remains deferred rather than destroyed, a prolonged period of high rates and weak affordability could keep sales volumes, average selling price (ASP) and margins under pressure.
Lower Home Prices & Deliveries Pressure RevenuesLEN’s top-line performance reflects continued weakness in the U.S. housing market. During the first nine months of fiscal 2026, home-sales revenues declined 7% year over year to $21.6 billion, as deliveries fell 2% to 58,222 homes from 59,549 homes. More importantly, ASP declined 5% to $372,000 from $393,000. The lower ASP indicates that Lennar is increasingly relying on pricing adjustments and incentives to maintain affordability and sales momentum. Regional weakness is also evident, particularly in the South Central and West markets, where both deliveries and ASPs declined.
Continued pricing pressure could constrain revenue growth and profitability if buyers remain highly sensitive to monthly housing costs. For the fourth quarter of fiscal 2026, Lennar expects deliveries of 22,000-23,000 homes (down from 23,034 in the year-ago quarter), with ASP projected between $370,000 and $380,000 (down from $386,000 in the year-ago quarter). Management reduced its full-year fiscal 2026 delivery target to about 80,000-81,000 homes from 82,000-83,000, citing continued interest-rate pressure and weaker market conditions.
Sharp Deterioration in ProfitabilityLennar’s profitability has weakened considerably in fiscal 2026, making margin compression a key concern. For the nine months ended Aug. 31, 2026, homebuilding gross margin declined to 15.5% from 18% a year ago, while gross margin dollars fell to $3.4 billion from $4.2 billion. The decline was primarily due to lower revenue per square foot and higher land costs, partly offset by lower construction costs. Although the homebuilder has improved construction efficiency, including lower construction costs per square foot and shorter cycle times, these gains have not been enough to offset pricing and land-cost pressures. Fourth-quarter fiscal 2026 gross margin guidance of 15.5-16% (down from 17% in the year-ago quarter) also suggests that meaningful margin recovery may remain elusive in the near term.
Deteriorating Operating LeverageLennar’s declining revenues are reducing operating leverage and putting additional pressure on earnings. Although nine-month fiscal 2026 selling, general and administrative (SG&A) expenses remained broadly unchanged at $2 billion year over year, SG&A increased to 9.4% of home-sales revenues from 8.5% a year earlier. The higher ratio reflects lower revenues and increased marketing and selling expenses, suggesting LEN is spending more to support demand while generating less revenue. The weakness extends beyond homebuilding. Financial Services operating earnings declined to $320.3 million from $476.9 million in the prior-year period, hurt by lower mortgage lock volume and lower profit per locked loan. This combination of weaker homebuilding economics and lower ancillary earnings could limit earnings recovery.
EPS Estimate Trends of LENLEN’s earnings estimates for fiscal 2026 and fiscal 2027 reflect a declining trend over the past 30 days, currently at $4.95 per share and $5.70 per share, respectively. The estimated figures for fiscal 2026 imply a year-over-year decline of 38.6%, while the same for fiscal 2027 reflects an improvement of 15.3%.
Image Source: Zacks Investment Research
LEN’s Valuation TrendLEN stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 14.28, as the trend lines suggest below.
Image Source: Zacks Investment Research
Lennar’s ROE PositionLennar’s lower return on equity (ROE) indicates its inefficiency in ensuring shareholder value. The company’s current trailing 12-month ROE of 6.15% compares unfavorably with the industry's ROE of 10.1%.
Image Source: Zacks Investment Research
Can LEN Stock Rebound From Its Uncertain Position?Lennar is facing substantial near-term challenges as elevated mortgage rates, affordability constraints and rising resale inventory continue to weigh on housing demand. The pressure is evident in fiscal 2026 results. During the first nine months, home-sales revenues fell 7% year over year to $21.6 billion, while deliveries declined 2% to 58,222 homes. Profitability is also deteriorating. Homebuilding gross margin contracted to 15.5% from 18% a year ago, while SG&A increased to 9.4% of home-sales revenues from 8.5%.
Meanwhile, fiscal 2026 EPS estimates imply a 38.6% decline, and LEN trades at a relatively elevated forward P/E of 14.28. Its 6.15% ROE also trails the industry average.
Overall, LEN stock appears unlikely to stage a meaningful near-term rebound unless mortgage rates, affordability and pricing conditions improve substantially. Persistent margin pressure and downward earnings revisions reflect the current Zacks Rank #5 (Strong Sell); thus, investors are advised to steer clear for now.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
If someone who doesn't really follow the market or investing asked me to describe the investing strategy of Berkshire Hathaway (BRKA +0.41%) (BRKB +0.43%), the massively successful insurance and holding company built by Warren Buffett, I'd tell them just two things to remember.
First, Berkshire aims to be a long-term investor. Buffett famously said that "our favorite holding period is forever." And second, it prefers to buy companies it believes are temporarily undervalued by the rest of the investing universe. "Be greedy when others are fearful," Buffett also likes to say.
Image source: Getty Images.
And if I wanted to present an example of this strategy, Berkshire management -- now headed by new CEO Greg Abel -- just provided a perfect one: It boosted its position in homebuilder Lennar (LEN -2.80%).
Consider that the U.S. housing market is in rough shape. It has been struggling for years. A new report out from White House economists says the country has 10 million fewer houses than it needs, and there remain many obstacles to building more at a fast enough pace to remedy to problem. And recently, soaring mortgage rates have put new home purchases even further out of reach for a growing swath of Americans. The average 30-year mortgage rate has climbed to almost 7.3%, more than 1 percentage point higher than at the beginning of 2026 and well more than double what it was five years ago.
Homebuilder stocks are having a terrible year All of this helps explain why homebuilder stocks are in the dumps this year -- including Lennar, which is down 20% so far in 2026 and off by 36% over the past 52 weeks. Clearly, most investors don't find this stock attractive. Analysts don't, either. Analysts' average 12-month price target for Lennar is $80, more than $2 below the current price. And of the 19 analysts who follow the stock (as tracked by Yahoo! Finance), 17 rate it a hold, underperform, or sell. Just two rate it a buy.
So, Lennar is a beaten-down stock in a highly troubled industry. Yet in late September, Berkshire Hathaway sank another $53.9 million into Lennar shares, bringing its stake to $2.2 billion, or 11% of the homebuilder. That's just behind the 11.2% stake held by investment giant Vanguard. That's on top of Berkshire's recent $6.8 billion acquisition of homebuilder Taylor Morrison, a deal it closed in July.
Clearly, Berkshire sees Lennar as undervalued by the market and took advantage of a lower share price to boost its stake in the company. It also appears that Berkshire is betting on the housing industry while conditions in it remain fraught. And it makes sense. The unaffordability of housing for average Americans is a huge problem, one that politicians and policymakers are eager to address. (This summer, Congress passed a bipartisan bill that aims to make it easier to build and finance housing.)
It may take a while, but I believe the housing industry will eventually rebound. Some investors don't have the resources or patience to wait for that rebound, but Berkshire does. I think ordinary retail investors should give this challenged industry a second look, too.
(This is the Warren Buffett Watch newsletter, news and analysis on all things Warren Buffett and Berkshire Hathaway. You can sign up here to receive it every Friday evening in your inbox.)
Berkshire buys more Lennar shares, but pace of purchases slowsBerkshire Hathaway added to its bet on Lennar this week, raising its stake in the homebuilder to 11.2%, although the pace of its buying appears to be slowing.
In an SEC filing late Wednesday, Berkshire disclosed it bought a total of $53.6 million of Lennar's Class A shares and another $329,000 of the super-voting B shares on Monday, Tuesday, and Wednesday.
That puts the position at a total of 26.6 million shares valued at $2.1 billion based on Friday's closing prices.
At the end of the second quarter, Berkshire owned a 5.4% stake of 13.4 million shares valued at $1.2 billion. That was an increase of almost 30% from the 10.3 million shares it owned at the end of the first quarter, which was, in turn, an increase of 43% from 7.2 million shares at the end of last year.
As the stock continued to falter in the third quarter, Berkshire continued to buy in secret until its stake hit 10% in mid-September, triggering an SEC rule requiring it to disclose additional moves within two business days.
That prompted two filings last week revealing Berkshire bought almost $349 million of Lennar shares on six out of the seven trading days between Sept. 17 and Sept. 25.
That's an average of $58 million per calendar day.
This week the average is just under $18 million through Wednesday.
Since Berkshire has not made a new filing as of publication of the newsletter Friday night, it appears Berkshire didn't do any buying on Thursday.
That would put the 4-day average at $13.5 million.
We won't know if there was activity Friday until after Monday's filing deadline.
While Berkshire is making a bet that Lennar will benefit from a long-term recovery in the nation's troubled housing market, Morgan Stanley is pessimistic about the stock's more immediate future.
It started coverage Thursday with an "underweight" rating and a price target of $65 per share. That's a drop of almost 19% from today's close of $79.81, a 2.8% decline for the day.
The nation's housing market is struggling. Six straight weeks of increases have brought the average 30-year fixed-rate mortgage to 7.30%, according to the Mortgage Bankers Association. That's the highest it's been since late 2023.
CNBC's Diana Olick reports the high rates have deterred potential homebuyers, who are also seeing higher house prices compared to last year.
Buffett is back in the top tenBUFFETT & BERKSHIRE AROUND THE INTERNETSome links may require a subscription:
Bloomberg (subscription): Ackman Plans to Raise Outside Capital in Push to Emulate BuffettInc.: Warren Buffett Says 1 Skill Makes You Worth 50 Percent More. I Learned It Selling Crunch 'n Munch at the Boston GardenTheStreet on Yahoo: What is Howard Buffett's net worth in 2026? The new Berkshire chair's wealth & shares The Motley Fool: Prediction: Berkshire Hathaway Joins the $2 Trillion Club Before 2032HIGHLIGHTS FROM CNBC'S BUFFETT ARCHIVEBuffett teaches his kids a lesson with a slot machine (2007)Warren Buffett explains why he put a slot machine on the third floor of his house when his now-adult children were growing up.
watch now
WARREN BUFFETT: The human propensity to gamble is huge.
Now, when it was legalized only in — pretty much in Nevada — you had to go to some distance, or break some laws, to do any serious gambling.
But as the states learned to — you know, what a great source of revenue it was, they gradually made it easier and easier and easier for people to gamble.
And, believe me, the easier it's made, the more people will gamble.
I mean, when I was — my children are here, and 40 years ago, I bought a slot machine and I put it up on our third floor.
And I could give me kids any allowance they wanted as long as it was in dimes. I mean, I had it all back by nightfall. (Laughter)
I thought — I thought it would be a good lesson for them.
Now they weren't going to Las Vegas to do it, but believe me when it was on the third floor, they could find it, you know.
And my payout ratio was terrible, too, but that's the kind of father I was. (Laughter)
The — but gambling, you know, people are always going to want to do it.
And for that reason, I particularly think that access — you know, in terms of friendly gambling or anything like that, I'm not a prude about it.
But I do think that to quite an extent, gambling is a tax on ignorance.
I mean, if you want to tax the ignorant, people who will do things with the odds against them, you know, you just put it in and guys like me don't have to pay taxes.
I really don't — I find that — I find it kind of socially revolting when a government preys on the weaknesses of its citizenry rather than acts to serve them. And, believe me, when a government — (Applause)
When a government makes it easy for people to take their Social Security checks and start pulling handles or participating in lotteries or whatever it may be, it's a pretty cynical act.
BERKSHIRE STOCK WATCHFour weeks
Twelve months
BRK.A stock price: $754,790.00
BRK.B stock price: $502.65
BRK.B P/E (TTM): 12.64
Berkshire Cash as of June 30: $365.5 billion (Down 8.0% from March 31)
Excluding Rail Cash and Subtracting T-Bills Payable: $359.2 billion (Down 3.8% from March 31)
Berkshire repurchased $4.5 billion of its shares in Q2 2026.
BERKSHIRE'S TOP EQUITY HOLDINGS - Oct. 2, 2026Berkshire's top holdings of disclosed publicly traded stocks in the U.S. and Japan, by market value, based on the latest closing prices.
Holdings are as of June 30, 2026, as reported in Berkshire Hathaway's 13F filing on Aug. 14, 2026, except for:
Mitsubishi, which is as of April 30, 2026The full list of holdings and current market values is available from CNBC.com's Berkshire Hathaway Portfolio Tracker.
QUESTIONS OR COMMENTSPlease send any questions or comments about the newsletter to me at [email protected]. (Sorry, but we don't forward questions or comments to Buffett himself.)
If you aren't already subscribed to this newsletter, you can sign up here.
Also, Buffett's annual letters to shareholders are highly recommended reading. There are collected here on Berkshire's website.
A Notable Increase in an Undervalued Homebuilder On Sept. 30, 2026, Warren Buffett (Trades, Portfolio) executed a purchase of Lennar Corp (LEN) shares, increasi
Lennar Corp. (NYSE:LEN) shares are trading lower Friday afternoon after investigative outlet Hunterbrook Media published a short report alleging the homebuilder met quarterly targets by selling hundreds of finished homes to its own spinoff, Millrose Properties Inc. (NYSE:MRP). Benzinga reached out to Lennar for comment on the allegations but did not immediately hear back from the company.
Here’s what investors need to know.
Lennar stock is under selling pressure. Why is LEN stock trading lower? Hunterbrook Accuses Lennar of Offloading Homes to SpinoffAccording to the report, Millrose, spun off by Lennar in 2025 as an off-balance-sheet land bank, amended its agreements in late August to buy finished single-family homes and operate them as rental properties. Hunterbrook identified over 700 home purchases by Millrose totaling approximately $200 million across 15 states in roughly a month.
Notably, at least 356 of those purchases occurred in the final week of Lennar’s fiscal third quarter. Hunterbrook claims these transactions enabled Lennar to meet its quarterly delivery guidance, beating the lower bound by just 340 homes while missing its four other financial targets.
Financial Risk and Governance ConcernsHunterbrook Capital, which holds short positions in both Lennar and Millrose, highlighted severe economic inefficiencies in the arrangement. The report estimates Millrose’s net rental yield at around 5%, failing to cover its borrowing costs of 6.5% to 6.75%.
Furthermore, property records indicate Millrose paid roughly 13% more than individual retail buyers after accounting for incentives. With Lennar CEO Stuart Miller holding 43% of Millrose’s voting power, accounting experts cited in the report questioned whether Millrose is acting against its independent financial interest to bolster Lennar.
LEN Shares Drop Friday AfternoonLEN Price Action: Lennar shares were down 2.51% at $80.05 at the time of publication on Friday, according to Benzinga Pro data.
Read Next
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
Morgan Stanley just issued a sell rating on a homebuilder that Berkshire Hathaway keeps buying in larger and larger quantities, and the reasoning behind each side reveals a fundamental disagreement about time, risk, and when housing recovers.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
On October 1, 2026, Morgan Stanley (NYSE:MS | MS Price Prediction) started covering Lennar (NYSE:LEN) with an Underweight rating, its version of a sell rating. It set a $65 price target.
Lennar shares barely moved. The stock rose 0.67% in that session and closed at $82.14. It had already fallen 18.88% year to date, so investors had likely priced in much of the bad news.
The buyer on the other side helps explain the calm. Berkshire Hathaway (NYSE:BRK-B) crossed 10% ownership of Lennar, and it kept buying through the end of the month.
That puts a major bank’s bearish call against a long-term owner looking to buy more. Both can read the same numbers because they operate on different time frames.
Morgan Stanley’s Objection Is About Margin Morgan Stanley wrote that “Lennar’s land-light transition needs to deliver better earnings, and higher finished lot costs and sustained incentives could offset the benefit.”
Land-light means Lennar buys options on lots from outside property owners instead of owning the land itself. This ties up less capital but reduces profit. Lennar owns fewer than 2.5% of about 488,000 controlled lots.
Gross margin on home sales already fell to 15.8% in the fiscal third quarter, down from 17.5% a year earlier, and incentives ran near 12.0%.
Morgan Stanley also rated two other builders Underweight. Its only Overweight went to Toll Brothers (NYSE:TOL), with a $159 target.
This rating adds to an already bearish majority. Lennar has 5 strong sell and 3 sell ratings, compared with 1 buy, 1 strong buy, and 8 holds. The consensus target of $80.08 sits below the share price, meaning the average analyst sees downside, though targets often lag reality.
What Berkshire Is Buying Berkshire held 13.1 million shares at the end of June. The stake reached about 26.6 million shares after purchases from September 28 through September 30. The timeline complicates any link to Warren Buffett. Berkshire’s original 2023 stake was about 153,000 shares. Buffett stepped down as chairman on September 18, with Greg Abel as chief executive.
Berkshire does not disclose which manager makes each purchase, so whether this is a Buffett call or an Abel call remains an open question (if you want to borrow Buffett’s homework elsewhere, we sorted the seven cheapest dividend payers in Berkshire’s portfolio into a free report here).
At this price, a buyer gets a large controlled land position, homebuilding debt at only 16.6% of total capital, and a claim on the day homes become affordable again. Berkshire can wait a full cycle for that return. Morgan Stanley is estimating the next few quarters.
Weak Results and Rising Rates Pressure Lennar Adjusted EPS of $1.23 missed the $1.30 consensus. Management cut full-year delivery guidance to 80,000 to 81,000 homes.
The 10-year Treasury yield rose to 5.29% on September 30. Higher rates make mortgage buydowns more expensive, putting the fourth-quarter margin guide of 15.5% to 16.0% at risk.
Berkshire can wait years without harm. A retiree holding shares with a -34.68% one-year return may not have that patience.
Toll Brothers, Morgan Stanley’s preferred builder, sells to wealthier buyers who depend less on financing incentives. Berkshire shareholders hold Lennar as one small part of a diversified company.
Watch fiscal fourth-quarter gross margin. A result below 15.5% would support Morgan Stanley’s case. A close below the $75.70 52-week low would put the stock at a new 52-week low.
Contact [email protected] for any questions or corrections.
Berkshire just crossed a threshold that forces it to reveal its moves within days, and what those filings show is a sustained, deliberate accumulation of a homebuilder Wall Street has loaded up with sell ratings.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Berkshire Hathaway (NYSE:BRK-B | BRK-B Price Prediction) moved fast into a homebuilder Wall Street has turned against. Per TipRanks, Berkshire bought $212.4 million of Lennar (NYSE:LEN) stock, over 2.7 million shares, between September 17 and September 21, 2026, at weighted-average prices from $74.80 to $79.41. GuruFocus reported a follow-on purchase of $136.4 million, bringing recent buying to over $348 million.
Why Berkshire’s Buying Is Visible Within Days Berkshire’s Form 4 filings list Berkshire Hathaway Inc as a 10% Owner of Lennar. Crossing 10% of a company triggers a disclosure duty, so a buyer that normally shows up once a quarter now appears within days. Per GuruFocus, the stake stands at roughly 25.9 million shares worth about $2.1 billion. CNBC reported the threshold crossing on September 22, 2026.
Six Trading Days of Filed Purchases Every Form 4 transaction is an acquisition. Selected lots, Class A unless noted:
September 17: 410,164 shares at $79.41; 267,585 at $78.41 September 18: 1,218,429 shares at $76.39; 33,122 Class B at $74.80 September 21: 483,809 shares at $77.97 September 23: 532,993 shares at $81.65 September 24: 399,238 shares at $80.58; 241,692 at $81.44 September 25: 313,379 shares at $80.90; 171,723 at $81.60 The TipRanks band of $74.80 to $79.41 matches these filings exactly, so the reporting and the primary source agree. The latest filed purchase, dated September 25, 2026, shows the campaign was still running three days ago.
Who Made the Call Greg Abel became Berkshire’s chief executive earlier in 2026, and Ted Weschler, a longtime Berkshire portfolio manager, controls about 6% of Berkshire’s portfolio, according to The Motley Fool.
Warren Buffett stepped down as chairman on September 18, 2026, followed by his son Howard Buffett. The largest single Class A lot closed that same day.
Analysts Lean Bearish on Lennar Lennar trades at $82.15 as of the premarket session on September 28, 2026, down 18.84% year to date, 32.44% over the past year and 8.02% over five years. Its 52-week range of $75.70 to $131.68 leaves it near the bottom.
The consensus target of $80.08 stands below the share price. The panel holds 1 strong buy, 1 buy, 8 hold, 3 sell and 5 strong sell ratings, reading as 44% bearish against 11% bullish. Our model rates Lennar a HOLD with a target price of $79.40, near fair value.
Incentives Are Squeezing Lennar’s Margins According to Adam Levy of The Motley Fool, revenue declined 8.7% year over year, homes delivered fell 3.4% and average sales price dropped 2.9%. Levy reported that management cut full-year delivery guidance to 80,500 from 82,500, and gross margin contracted to 15.8% from 17.5% as Lennar leaned on incentives including mortgage rate buydowns. Fourth-quarter gross margin on home sales is guided to 15.5% to 16.0%. The stock trades at 0.91 times book value, according to The Motley Fool.
Quant Funds Trimmed While Berkshire Added Berkshire’s June 30, 2026 13F, filed August 14, 2026, shows 13,111,741 Lennar shares valued at $1,186,481,443 after adding 3,012,099 that quarter. Two Sigma, D. E. Shaw, Renaissance Technologies and Millennium Management all cut Lennar in the same quarter, with Millennium holding puts. 13F data is a June 30 snapshot.
Lennar Fits a Wider Housing Push Berkshire completed its purchase of Taylor Morrison, combining operations with Clayton Homes. The June 30 13F shows positions in NVR (NYSE:NVR) at 11,112 shares, Louisiana-Pacific (NYSE:LPX) at 5,664,793 shares and D.R. Horton (NYSE:DHI) at 3,564 shares. Per Adam Levy of The Motley Fool, estimates place the US housing shortage between 2 million and 5.5 million units.
What Readers Can and Cannot Know Berkshire bought a falling stock on six dated occasions, crossed a disclosure threshold doing it, and kept buying while four quant funds cut and analysts carried five strong sells. Whether Berkshire is right remains unknown. It has a long horizon and a balance sheet that can wait. For readers who want to piggyback on Berkshire’s homework more broadly, we sorted its holdings by valuation and pulled the seven cheapest dividend payers into a free report.
Contact [email protected] for any questions or corrections.
Warren Buffett just crossed a legally significant ownership threshold in a beaten homebuilder one day after it missed earnings and slashed guidance, a move that reframes whether the housing market's worst-read quarter signals catastrophe or opportunity.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
At $81.47, Lennar (NYSE:LEN | LEN Price Prediction) looks compelling on a research basis. The sharpest confirmation came from Warren Buffett, who crossed 10% ownership of the homebuilder with a September 17, 2026 transaction date, one day after Lennar missed earnings and cut its full-year delivery guidance. Buffett appears to be pricing the decade of housing scarcity behind the weak quarter.
Lennar is the second-largest US homebuilder, running a land-light model that controls roughly 488,000 homesites while owning fewer than 2.5% of them. Fiscal Q3 2026 landed with adjusted EPS of $1.23 against a $1.2963 consensus, revenue of $8.05 billion, down 8.52% year over year, and new orders 9% lower. Management then trimmed full-year 2026 deliveries to between 80,000 and 81,000 homes from a prior range of 82,000 to 83,000.
A portfolio manager on Marketplace captured the setup Buffett was buying: “There is a buildup of family formations which should normally move into homes. We’re not seeing that because the housing supply for them just isn’t there.”
Why Buffett Crossed the 10% Line at a 12-Month Low Berkshire moved with Lennar down 35.1% over the past year. In August, existing home sales printed 3.98 million annualized, the softest reading in the trailing year, while housing starts, or the number of units under construction, sit at 1.27 million, below the 1.5M threshold. Undersupply coupled with a frozen resale market creates structural pull for new construction.
Lennar’s operating machine is improving. Construction cost per square foot is down 6% year over year and 14% since Q4 2023. Cycle time hit a record low 116 days. In its latest quarter, management repurchased 3 million shares for $256 million. Nevertheless, Lennar CEO Stuart Miller warned, “The fundamental shortage of housing in America has not been solved.”
Where the Bear Case Still Bites Gross margin on home sales compressed to 15.8% from 17.5%, with incentives near 12%. Net income fell 51.96% year over year. Q4 guidance calls for gross margin of 15.5% to 16.0%, meaning the trough is not confirmed.
The 30-year mortgage sat at approximately 6.8% at quarter end and has crept higher since. Miller said Lennar is not building its plan around Fed rate cuts, noting that in many communities, “Almost 50% of our visitors cannot immediately qualify” for a mortgage. Resale supply is competing aggressively in Texas and Florida, Lennar’s two biggest markets.
What Keeps Some Investors on the Sidelines There is a hold case for the stock. Lennar looks cheap because earnings are still falling. FY2025 EPS was $7.98. Q4 guidance implies an EPS range of roughly $1.30 to $1.65, extending the trajectory lower. Buying before Q4 clears the tape risks another downdraft, especially if mortgage rates push higher.
The Buffett signal reframes the debate for investors weighing the setup. Crossing the 10% threshold triggers faster disclosure than 13F reporting, so Berkshire is on record in near real time.
Price, Targets, and Performance Behind the Verdict Lennar trades at $81.47, with a market cap near $19.6 billion. Wall Street’s consensus 12-month price target is around $92, implying modest upside on a Reduce-leaning consensus. Buffett’s disclosed position is the stronger signal.
Against the S&P 500’s roughly 12.5% year-to-date gain, Lennar’s 20.7% YTD decline is a gap of more than 30 points. Over one year, Lennar is off 35.1% against the S&P’s roughly 16% gain.
Verdict: Why Buffett’s Signal Anchors the Thesis At $81.47, Lennar screens as an interesting research case. Here is why.
Appreciation runs through three catalysts: easing in mortgage rates from the current ~7% zone, clearing of older high-cost land as Lennar delivers through it, and margin normalization from today’s 15.8% toward the low 20s that defined 2022. Each lever requires time rather than a boom, and Berkshire has just that.
The risk/reward profile is asymmetric. Lennar has discounted a soft Q4, deteriorating orders, and no Fed help. Invalidators hover, including mortgages sustained above 7.5%, order declines accelerating into double digits, or debt-to-capital breaking meaningfully above the current 16.6%. Investors should watch Q4 deliveries against the 22,000 to 23,000 guide and incentive percentage each quarter.
When the country’s most patient investor buys 10% of a beaten homebuilder the day after it cuts guidance, the research case is to weigh the scarcity thesis alongside him before making a move.
Contact [email protected] for any questions or corrections.
MIAMI, Sept. 23, 2026 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, announced that its Board of Directors has declared a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock payable on October 22, 2026 to holders of record at the close of business on October 7, 2026.
The Fed’s latest rate hike looks straightforward on the surface: inflation remains a problem, so policymakers are keeping pressure on the economy. There is reason to believe the FOMC remains behind the curve, as it has been since inflation reared its ugly head. But a case can be made that the committee is setting the market up for a massive rate cut. It takes some forward thinking (and a penchant for conspiracy theories), but raising interest rates amid economic headwinds could push the economy into stagnation, putting the Fed in a position to cut rates, perhaps by larger-than-normal increments, within the next few quarters. The more speculative version of the argument is that the Fed may be creating that room intentionally.
Get SPDR S&P 500 ETF Trust alerts:
Oil Price Wild Card Sets Stage for Inflation ImplosionOil prices aren’t the only cause of inflation, but they have contributed to this year’s acceleration, and the FOMC is all too aware. The risk for the Fed is that the market gives up oil’s Iran War premium, pulling headline inflation lower. As it stands, demand erosion, Strait of Hormuz workarounds, ramped non-OPEC production, and the eventual resolution of the conflict could eventually lead to a much looser supply balance.
A supply glut means lower oil prices, and the market will likely price it in long before it becomes reality. Some forecasts suggest oil prices could revert to long-term lows in the low $60 range by the middle of 2027. As it is, oil markets are in backwardation, as most participants don’t expect prices to stay high for long, with forward contracts reflecting the premium and long-term contracts not. WTI’s price action is also reflecting potential for a top, with resistance at $105 confirmed by September activity.
The question is why the Fed might do this. The initial reaction to September’s rate hike was minimal, as it was largely expected, and did little to impair business activity. They’ll need to hike rates another 50 to 75 basis points to really impair activity, and that much hiking is unlikely, given the oil price risk. What the quarter-point September hike did do, however, is give the FOMC extra ammunition for when inflation falls, enabling the aforementioned massive interest rate cut, when the timing is right.
The End Result—Unsticking the Housing MarketA massive interest rate cut is generally good for rate-sensitive markets, but which market will benefit most? Could it be the housing market? Long constrained by capacity, high prices, and high interest rates, a sudden rate drop, potentially leading mortgages to below 5.5%, might unstick the housing market. Unsticking the housing market will unleash broad-based economic activity and usher in a generational economic expansion.
Yields on the 10-year Treasury foreshadowed the Fed’s September hike, rising to long-term highs, and may now be foreshadowing the interest rate ceiling. Market action for this instrument has hovered near long-term highs for several weeks, reflecting resistance at a critical level, with MACD divergences and oversold conditions on the monthly and weekly charts. There is no guarantee yields will start to fall (and bond prices to rise), but the technical setup strongly suggests a top is in.
Lennar NYSE: LEN, for one, is well-positioned in the housing market to benefit from falling rates. It's leaned into efficiency, reducing overall costs and lead times, while gaining share nationally. Falling rates will drive accelerated growth, wider margins, faster cash flow improvement, and share buybacks. Until then, the company is leveraging its cash flow and balance sheet to aggressively reduce shares while they trade at multiyear lows.
What the Fed’s Rate Cut Means for the S&P 500The rate hike presents hurdles for the S&P 500, but history shows the market tends to rise after the first hike in a rate-hiking cycle. While the initial response may be a correction, pullbacks are usually short-lived, and the market often gains over the subsequent 12 months of hiking because of underlying economic fundamentals. Today's fundamentals include resilient labor markets and consumer spending, expansion in the services and manufacturing sectors, and aggressive business investment driven by AI.
AI fears persist, but are not the problems the market makes them out to be. Software-as-a-service companies are defying logic and implementing AI faster than AI can disrupt their businesses, and the call to slow down frontier modeling is great news for cash flow. Frontier modeling and its infrastructure costs have dragged on cash flow across the industry, pushing many tech companies into negative cash flow, debt increases, and/or dilutive activities, which have impaired stock price performance. Slowing spending will allow these companies to monetize existing infrastructure, return to positive cash flow, free up capital for returns, and improve balance sheets, regardless of the Fed’s quarter-point hike.
The critical takeaway is that near-term volatility is expected, but the S&P 500’s uptrend is intact. Potential catalysts arrive in late October and early November with the onset of Q3 earnings and the midterm elections. The nearer-term factors to watch are declining oil prices and persistent signals that the AI build continues.
Should You Invest $1,000 in SPDR S&P 500 ETF Trust Right Now?Before you consider SPDR S&P 500 ETF Trust, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SPDR S&P 500 ETF Trust wasn't on the list.
While SPDR S&P 500 ETF Trust currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Berkshire Hathaway has built almost a 10% stake in Lennar, a Miami-based homebuilder, according to a securities filing. The conglomerate has a long history of taking stakes in homebuilders.
Index Dow Jones -0,34 % na 51869,27 b. S&P 500 +0,02 % na 7765,99 b. Nasdaq Composite +0,31 % na 27204,89 b.
Včerejší růst rozšiřují technologie, které měřeno indexem Nasdaq Composite připisují tři desetiny. Index současně rozšířil své historické intradenní maximum. V širokém indexu S&P 500 převládla zelená barva a kosmeticky posiluje. Brzdí jej především sektor financí, kde vyšší úrokové sazby tlačí na nově poskytované úvěry a trh se tak obává slabších bankovních výsledků. V nemilosti je dnes index Dow Jones, který se mimo finančních titulů potopil do červených čísel díky Cisco Systems (- 6,1 %).
Netflix klesá o 1,9 % po snížení investičního doporučení HSBS na stupeň Hold s cílovou cenou USD 76. HSBC upozorňuje na pokles podílu Netflixu na sledování a zostřený souboj s Youtube.
Shopify roste o 7,6 %. Meta Platforms jej zapojí do svého nového AI agenta, který může vyhledávat produkty v obchodech provozovaných na Shopify. Benefity pro obchodníka by tak bylo generování transakčních příjmů i bez zákaznické návštěvy obchodu.
V USA obchodované ADR Alibaba Group dnes připisují 0,6 %. Čínský technologický gigant představil plány na významné rozšíření kapacity datových center a představil čip nové generace pro umělou inteligenci.
Společnost Lennar (5,8 %) se může pochlubit zařazením do portfolia Berkshire Hathaway, která nakoupila 2,7 mil. kusů jejich akcií.
Poskytovatel diagnostických služeb Quest Diagnostics klesá o 4 % po zveřejnění zprávy o vyšších platbách za laboratorní služby pro Medicare ve srovnání se soukromými plátci o 16 %. CMS (Centers for Medicare & Medicaid) zveřejnil návrh na změnu úhrad laboratorních testů od ledna 2027, kde předpokládá pokles cen o 15 %.
Futures na ropu WTI klesají po zprávách o výzvě Iránu k deeskalaci konfliktu s možností znovuotevření plavby Hormuzským průlivem do týdne. Prezident Trump se nechal slyšet, že učiní velké rozhodnutí o tom, zda uzavře dohodu, anebo zemi anihiluje. Cena barelu klesá o 0,9 % k USD 91,4.
Index S&P 500 +0,02 % na 7765,99 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +1,5 % Finanční sektor -1,7 % Nezbytná spotřeba +1,2 % Komunikační služby -0,9 % Zdravotní péče +0,7 % Zbytná spotřeba -0,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Monolithic Power Systems (MPWR) +7,6 % Gen Digital (GEN) -6,6 % Sandisk Corp (SNDK) +6,9 % Cisco Systems (CSCO) -5,9 % AutoZone (AZO) +6,3 % Charles Schwab Corp (SCHW) -5,8 % Lennar Corp (LEN) +5,8 % Allstate Corp (ALL) -5,1 % O'Reilly Automotive (ORLY) +4,5 % Ameriprise Financial (AMP) -4,6 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení
Lennar Corporation endured a weak Q3, with revenue at $8.05B, EPS down 48% YoY, and guidance for home deliveries cut. LEN is trading at 0.85x book value, well below historical averages, despite active share buybacks and a shift to an asset-light model. Management is sacrificing margins—gross margin fell to 15.8%—to sustain volume, using incentives and cost controls to keep inventory moving.
You are now leaving Barron's websiteBy clicking on the “Proceed” button below, you will be redirected to a third-party website owned and operated by Hong Kong Tiimoot Information Technology Co., Limited. (“HKT”), which is located in Hong Kong. That website operates independently from Barron's and Barron's does not control the website. The privacy practices of HKT are subject to its Privacy Statement, so please read it closely. We are not responsible for HKT's privacy or other data-related practices.
Wall Street analysts had already set a relatively low bar for Lennar's NYSE: LEN fiscal Q3 2026 earnings, reflecting expectations of continued pressure on the homebuilder amid a challenging housing market.
The stock carried a consensus Reduce rating, while analysts expected earnings per share (EPS) of $1.29—about 35% below the year-ago quarter—and revenue of $8.32 billion. But Lennar still fell short, reporting adjusted EPS of $1.23 on revenue of $8.05 billion.
Get Lennar alerts:
Lennar Corporation (LEN) Price Chart for Saturday, September, 19, 2026
Shares responded by falling to a new 52-week low the following day, trading as low as $76.07.
The earnings report was a disappointment to shareholders who have endured a more than 25% year-to-date loss, and a one-year loss now exceeding 42%.
But the bigger takeaway is what Lennar’s miss suggests about the broader housing market: affordability pressures, elevated mortgage rates, and rising resale competition are increasingly weighing on even the nation’s largest homebuilders.
Lennar’s Earnings Miss Exposes Deeper Housing-Market PressureLennar Today
$76.43 -3.27 (-4.11%)
As of 09/18/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$75.70▼
$133.762.62%
14.45
$89.07
The earnings call wasn’t without positive takeaways. Lennar delivered 20,840 homes last quarter and improved its gross margin on home sales to 15.8%. Incentives averaged approximately 12.0% of the sales price in Q3, down from 12.9% in Q2, as the company reduced its reliance on rate buydowns, closing-cost assistance, and other buyer incentives.
The company maintains a strong cash position, with $1.2 billion on the books, in addition to $3.6 billion in total liquidity, with 98% of homesites controlled through third-party land arrangements.
Lennar also repurchased 3 million shares at a cost of $256 million in Q3, paid $119 million in dividends, and redeemed $400 million in debt.
But management was cautious when issuing Q4 guidance, which calls for between 22,000 and 23,000 deliveries, gross margins between 15.5% and 16%, and EPS in a range of $1.30 to $1.65. Notably, the company cautioned that those results remain highly dependent on labor availability, resale competition, volatile rates, and broader market conditions.
Those conditions are an immediate and real challenge. Lennar’s disappointing Q3 isn’t an isolated issue. Amid the surge in 10-year bond rates over the past two weeks, homebuilders continue to grapple with 30-year fixed mortgage rates around 7%—less than 100 basis points from the highest levels since 2000—which are eroding potential homebuyers’ purchasing power.
Meanwhile, the housing market has largely stagnated as low consumer confidence and affordability issues persist. According to FRED data, the median sales price of new homes in the United States was $410,700 in the second quarter, marking a nearly 30% increase over the median home price in Q2 2020.
At the same time, resale inventory—particularly in some of the hottest housing markets in the country like Texas and Florida—continues to increase, thereby creating more competition for homebuilders. After hitting a 10-year low of 35,586 active listings in February 2022, FRED data shows that in August, Florida had nearly 147,000 active listings, marginally down from its 10-year high of 182,593 in April 2025.
Lennar Isn’t Alone: Other Major Homebuilders Face the Same PressuresD.R. Horton Today
$138.16 -2.22 (-1.58%)
As of 09/18/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$131.75▼
$176.221.30%
13.15
$165.25
Lennar’s disappointing Q3 isn’t an isolated issue. Instead, it is part of a larger mosaic of homebuilders all dealing with the same headwinds.
When America’s largest homebuilder, D.R. Horton NYSE: DHI, reported its Q3 results on July 21, year-over-year (YOY) revenue growth was virtually flat at 0.02%. In Q2, that figure was negative 2.27% YOY, while in Q1 it was negative 9.54% YOY.
During the company’s earnings call, management highlighted how affordability constraints and cautious consumer sentiment have weighed on demand. D.R. Horton’s Q3 orders were flat YOY, while its cancellation rate rose to 20% from 17% the year prior.
PulteGroup NYSE: PHM hasn’t fared much better. When it reported Q2 earnings on July 22, revenue of $3.98 billion marked a 9.6% YOY decrease, following a 12.44% drop in Q1. In his earnings call comments, CEO Ryan Marshall noted that “consumer activity was impacted to varying degrees by global tensions, macroeconomic uncertainty, and the material movement in interest rates.”
Higher Rates Keep Pressure on the Housing OutlookIn June, the market was positioning for a potential interest rate cut that could have served as a boon to the housing market. But inflation remained elevated, and the Federal Reserve shifted back toward tightening.
At its Sept. 16 FOMC meeting, the central bank announced a 25-basis-point rate hike—its first since 2023.
The rate hike reduces the likelihood of near-term relief for homebuilders that had been hoping lower borrowing costs would help revive buyer demand. Lennar is facing many of the same challenges confronting D.R. Horton, PulteGroup, and other major builders, with financing conditions likely to remain a significant headwind. Investors may want to watch mortgage-rate trends, order growth, cancellation rates, and Lennar’s use of incentives for signs that housing demand is beginning to stabilize.
Should You Invest $1,000 in Lennar Right Now?Before you consider Lennar, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Lennar wasn't on the list.
While Lennar currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
This is a fair market value price provided by Massive. Learn more.
$75.70▼
$133.762.62%
14.44
$89.07
Lennar NYSE: LEN faces hurdles, but these are near-term issues that obscure what investors should focus on. The company is a cash-flow machine, sustaining aggressive capital returns as it builds a better business. Key takeaways from the Q3 report and conference call include lower construction costs and faster turnover, which should improve profitability and accelerate growth as the market recovers. Until then, the Even-Flow strategy is working; the company is sustaining volume despite market deterioration with incentives, gaining share as smaller operators are priced out of business.
Lennar’s capital return is substantial. Even with the risk of slowing. As it stands, the dividend yields approximately 2.63% with shares trading near long-term lows, and buybacks are reducing the share count aggressively. Down about 7% on average at quarter’s end, reductions give investors significant leverage, offsetting the impact of buybacks on the balance sheet. Balance sheet highlights include reduced cash but a sufficient pile to sustain operational health and capital returns in upcoming quarters, steady total assets and reduced debt and liabilities. Equity contracted, but mildly, given the share count reduction and subsequent addition to treasury shares.
Get Lennar alerts:
Analysts and Institutions Give Mixed Signals - But Support Is SolidLennar Stock Forecast Today12-Month Stock Price Forecast:
$89.07
16.62% Upside
Reduce
Based on 19 Analyst Ratings
Current Price$76.37High Forecast$140.00Average Forecast$89.07Low Forecast$63.00Lennar Stock Forecast Details
Analysts and institutions provide conflicting signals, with a consensus of Reduce and reduced activity. However, analysts are fairly confident, with 19 covering the stock, suggesting it's an ownable stock, though September Q3 may not be the right time to get in. Meanwhile, institutional data reflects a reduction in overall activity more so than in total holdings, with trailing 12-month activity showing an approximately $600 million bearish balance, worth about 3.3% of the September market cap, and total activity petering out to under $100 million quarterly, as of mid-Q3 2026. They own more than 80% of the stock and reflect strong confidence in the long-term, cash-generating opportunity.
Short interest is a concern in the near term. Short interest isn’t astronomically high but reflects caution and hedging, at over 8% and a long-term high. The risk is that short-sellers will lean into this trade and drive to lower lows, but there is an opportunity even in that. Trading at 14x current-year expectations puts LEN stock at the high end of its range, suggesting lower share prices to come. The longer-term outlook, however, prices in an eventual housing recovery and puts this stock in the low single digits within five years, suggesting ample upside.
Bears are wrong to assume housing markets will be frozen forever. While inflation, affordability, and interest rates are undercutting demand today, interest rates will eventually fall, unleashing historically high demand. Until then, Lennar’s strategy is focused on building houses to fill the void, using affordability to drive sales and cash flow while it hones its process. Looking forward, it is well-positioned as a top-tier builder, commanding a massive market share within the mid-tier market, the largest segment of housing in America.
Lennar Whiffs in Q3 Despite Structural ImprovementLennar’s Q3 results highlight the near-term risks. The company’s $8 billion in revenue fell 9.2% year over year and missed expectations due to lower pricing and traffic. New orders also fell by 9%, but there is good news. New orders lightly outpaced deliveries, setting the stage for sustainability in the upcoming quarter, if not growth.
Other details include reduced earnings power and cash flow, with adjusted cash flow down by a solid double-digit amount to $294 million and insufficient to cover capital returns, where the risks lie. In this scenario, the company’s balance sheet helps sustain returns, but it can’t do so forever. The upshot is that Lennar remains in a fortress-like position and can execute its strategy, including taking advantage of ultra-low stock prices. The question is when repurchases may slow, and by how much; the answer is likely in the coming year, and by half or more.
The post-release price action is as mixed as the quarterly details. Results triggered an initial pop, followed by selling and then a rebound, reflecting indecision. The technical signal is a Falling Wedge, which often signals a reversal. The best-case scenario is that Lennar is at its bottom and will begin to recover soon, but it is unlikely to advance significantly and is more likely to re-enter its trading range, which tops out near $90. The worst-case scenario is that Lennar’s support base shifts gears, starts distributing shares, and drives the market to fresh lows, which is not expected. Factors suggesting the lows are in include the volume, which increased as LEN reached its fresh lows.
Should You Invest $1,000 in Lennar Right Now?Before you consider Lennar, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Lennar wasn't on the list.
While Lennar currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Learn the basics of options trading and how to use them to boost returns and manage risk with this free report from MarketBeat. Click the link below to get your free copy.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Corient Private Wealth LP lifted its stake in shares of Lennar Corporation (NYSE: LEN) by 24.7% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 82,261 shares of the construction company's stock after acquiring an additional 16,299 shares during the quarter.
Lennar Corporation (LEN) Q3 2026 Earnings Call September 17, 2026 11:00 AM EDT
Company Participants
David Collins - VP & Controller
Stuart Miller - Executive Chairman, CEO & President
Diane Bessette - CFO & VP
Jim Parker - Chief Operating Officer
David Grove - Executive Vice President of Homebuilding
Conference Call Participants
Susan Maklari - Goldman Sachs Group, Inc., Research Division
Trevor Allinson - Wolfe Research, LLC
John Lovallo - UBS Investment Bank, Research Division
Stephen Kim - Evercore ISI Institutional Equities, Research Division
Jay McCanless - Citizens JMP Securities, LLC, Research Division
Presentation
Operator
Welcome to Lennar's Third Quarter Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time. I will now turn the call over to David Collins for the reading of the forward-looking statement.
David Collins
VP & Controller
Thank you, and good morning, everyone. Today's conference call may include forward-looking statements, including statements regarding Lennar's business, financial condition, results of operations, cash flows, strategies and prospects. Forward-looking statements represent only Lennar's estimates on the date of this conference call and are not intended to give any assurance as to actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could affect future results and may cause Lennar's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in our earnings release and our SEC filings, including those under the caption Risk Factors contained in Lennar's annual report on Form 10-K most recently filed with the SEC. Please note that Lennar assumes no obligation to update any forward-looking statements.
Operator
I would now like to introduce your host, Mr. Stuart Miller, Executive Chairman, CEO and President. Sir, you may begin.
