Lennar Corp. to react to hew home sales data

What's Happening With LEN View more about LEN >

Homebuilder Lennar Corp. (LEN) will likely react to April’s new home sales report that is due to be released on May 24. Analysts forecast an annual rate of 523,000, up from 511,000 in March. LEN has been trending lower over the last month, and the stock is currently down 11.1% on the year.

Technical Analysis

LEN was recently trading at $43.49, down $12.55 from its 12-month high and $6.35 above its 12-month low. Technical indicators for LEN are bearish and the stock is in a weak downward trend. The stock has recent support above $42.90 and recent resistance below $46.00. Of the 12 analysts who cover the stock, five rate it a “strong buy”, two rate it a “buy”, one five rate it a “hold”. The stock receives S&P Capital IQ’s 4 STARS “Buy” ranking.

Analysts' Thoughts

There is no questioning the fact that the housing recovery has slowed over the last year, but housing remains on fairly solid ground, and the April new home sales report should show that. The March report showed new home sales during the month were up 5.4% from the same period in the previous year, but down from February’s annual rate. Last year, there were a total of 501,000 new homes sold, which was the highest number since the recession. At the current sales rate, 2016 is well on its way to topping last year’s figure and setting a new post-recession record. At the start of the year, it appeared as if the Federal Reserve would enact a series of interest rate increases during the year, but that no longer appears to be the case. The Fed will almost certainly boost rates once this year, but it is likely that just one rate increase is coming, so the housing recovery does not have to worry so much about the impact of higher interest rates. However, just the fear that higher rates are coming should keep the pressure on potential homebuyers to get their new home as quickly as possible. I believe the April report will be strong enough to boost the entire sector, and LEN will move higher following the news.

LEN
About Lennar Corporation Class A

After merging with CalAtlantic in February 2018, Lennar is positioned to become the largest homebuilder in the United States. The company's homebuilding operations target first-time, move-up, and active adult homebuyers mainly under the Lennar brand name. Lennar's financial-services segment provides mortgage financing and related services to its homebuyers and third parties. Miami-based Lennar is also involved in multifamily construction.

  • Last Price:
    $46.59
  • Previous Close:
    $47.86
  • Change:
    $-1.27 (-2.65%)
  • Open:
    $47.91
  • Volume:
    2,647,691
  • Average Volume (100 Day):
    4,385,557
  • Market Capitalization:
    $15.1 B
  • Day's Range:
    $46.45 - $48.22
  • Dividend Yield:
    0.33%
  • 52-week Range:
    $65 - $37.29
  • P-E:
    9.00
  • EPS:
    $5.34
  • Earnings Date:
    3/27/19
  • Ex Dividend Date:
    1/24/19
  • Sector:
    Consumer Cyclical
  • Industry:
    Residential Construction
  • Analyst Average Recommendation:
    Strong Buy

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