Lennar Corporation (NYSE:LEN) shares traded lower over the last trading session, losing -0.58% on 06/21/21. The shares fell to a low of $96.75 before closing at $97.60. Intraday shares traded counted 3.75 million, which was -58.7% lower than its 30-day average trading volume of 2.36M. LEN’s previous close was $98.17 while the outstanding shares total 309.02M. The firm has a beta of 1.50, a 12-month trailing P/E ratio of 12.37, and a growth ratio of 1.16. The stock’s Relative Strength Index (RSI) is 53.24, with weekly volatility at 3.46% and ATR at 2.90. The LEN stock’s 52-week price range has touched low of $57.12 and a $110.61 high.
Investors have identified the Residential Construction company Lennar Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $28.80 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Lennar Corporation (LEN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 20.43 billion total, with 1.71 billion as their total liabilities.
LEN were able to record 376.26 million as free cash flow during the 10/06/2021 quarter of the year, this saw their quarterly net cash flow reduce by -337.53 million. In cash movements, the company had a total of 385.51 million as operating cash flow.
Potential earnings growth for Lennar Corporation (LEN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 10/06/2021 quarter of the year, Lennar Corporation recorded a total of 5.33 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 15.4% coming in sequential stages and their sales for the 10/06/2021 quarter reducing by -28.17%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 4.35 billion trying to sell their products during the last quarter, with the result yielding a gross income of 974.02 million. This allows shareholders to hold on to 309.02M with the recently reported earning now reading 3.29 cents per share. This is a figure that compared to analyst’s prediction for their 10/06/2021 (2.95 cents a share).
Having a look at the company’s valuation, the company is expected to record 11.87 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LEN sounds very interesting.
Is the stock of LEN attractive?
In related news, Executive Vice President, McCall Jeffrey Joseph sold 10,000 shares of the company’s stock in a transaction that recorded on Jun 01. The sale was performed at an average price of 100.14, for a total value of 1,001,400. As the sale deal closes, the Executive Vice President, McCall Jeffrey Joseph now sold 10,000 shares of the company’s stock, valued at 1,024,642. Also, VP/CFO/Treasurer, BESSETTE DIANE J sold 10,036 shares of the company’s stock in a deal that was recorded on Mar 26. The shares were price at an average price of 100.85 per share, with a total market value of 1,012,161. Following this completion of acquisition, the Executive Vice President, McCall Jeffrey Joseph now holds 10,000 shares of the company’s stock, valued at 802,200. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.60%.
9 out of 17 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Lennar Corporation. 0 analysts has assigned a Sell rating on the LEN stock. The 12-month mean consensus price target for the company’s shares has been set at $109.50.