Lennar Story

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LEN -- USA Stock  

USD 100.10  3.90  3.75%

Lennar Enterprise Value is quite stable at the moment as compared to the past year. The company's current Enterprise Value is estimated at 33.76 Billion. Free Cash Flow is expected to rise to about 1.8 B this year, although the value of Revenue Per Employee will most likely fall to about 1.6 M. The primary goal of this thesis is to break down Lennar potential for October. We are going to inspect if Lennar is reasonably priced going into October.
Published over six months ago
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Are Lennar (NYSE:LEN) institutional investors starting to hold back?
On a scale of 0 to 100, Lennar holds a performance score of 10. The company secures a Beta (Market Risk) of -0.2526, which conveys not very significant fluctuations relative to the market. Let's try to break down what Lennar's beta means in this case. As returns on the market increase, returns on owning Lennar are expected to decrease at a much lower rate. During the bear market, Lennar is likely to outperform the market. Although it is vital to follow Lennar price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Lennar technical indicators, you can presently evaluate if the expected return of 0.34% will be sustainable into the future. Please exercises Lennar maximum drawdown, as well as the relationship between the expected short fall and rate of daily change to make a quick decision on whether Lennar current price movements will revert.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Lennar Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Lennar Corp

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Lennar Corp's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Lennar Corp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Lennar Corp. Your research has to be compared to or analyzed against Lennar Corp's peers to derive any actionable benefits. When done correctly, Lennar Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Lennar Corp.

How important is Lennar Corp's Liquidity

Lennar Corp financial leverage refers to using borrowed capital as a funding source to finance Lennar Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lennar Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Lennar Corp's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Lennar Corp, but it might be worth checking our own buy vs. sell analysis

Acquisition by Amy Banse of 1305 shares of Lennar Corp subject to Rule 16b-3

Legal trades by Lennar Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Lennar insider trading alert for grant of class a common stock by Amy Banse, the corporate stakeholder, on 9th of April 2021. This event was filed by Lennar Corp with SEC on 2021-04-09. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Lennar Corp Investor Appetite?

The latest rise in Lennar short term price appreciation may encourage institutional investors to take a closer look at the firm as it is trading at a share price of 79.00 on slow start in trading volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.32. The current volatility is consistent with the ongoing market swings in August 2020 as well as with Lennar unsystematic, company-specific events.

Returns Breakdown

Return on Investment8.37
Return on Assets0.0602
Return on Equity0.13
Return Capital0.0657
Return on Sales0.11

Lennar may start a correction in October

The coefficient of variation is down to 815.45 as of today. Lennar currently demonstrates below-verage downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.35. However, we do advice investors to further question Lennar expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Bottom Line On Lennar

Whereas other companies within the residential construction industry are still a little expensive, even after the recent corrections, Lennar may offer a potential longer-term growth to institutional investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither trade new shares of Lennar nor short your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lennar.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Lennar Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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