Home Sectors Consumer Cyclical Stock to Track: Lennar Corporation (NYSE: LEN)

Stock to Track: Lennar Corporation (NYSE: LEN)

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Lennar Corporation is in the consumer cyclical sector and is part of the homebuilding and construction industry. The company CEO is Richard Beckwitt. Lennar Corp is a homebuilding service provider. Its operations include the construction and sale of single-family attached and detached homes, and to a lesser extent multi-level residential buildings.

Previous Intraday Trading Performance:

The LEN stock showed a previous change of 1.07% with an open at 53.21 and a close of 53.69. It reached an intraday high of 54.38 and a low of 52.96.

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Liquidity:

The stock has a market cap of $17.7b with 328.8m shares outstanding, of which the float is 328.4m shares. Trading volume reached 2,982,541 shares compared to its average volume of 4,155,720 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Lennar Corporation shares returned 2.27% and in the past 30 trading days it returned 4.33%. Over three months, it changed -11.60%. In one year it has changed 0.58% and within that year its 52-week high was 72.17 and its 52-week low was 48.55. LEN stock is 10.59% above its 52 Week Low.

Our calculations show a 200 day moving average of 57.73 and a 50 day moving average of 52.70. Currently LEN stock is trading -7.01% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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Earnings:

The last annual fiscal EPS for the company was reported at 3.38 that ended on 30th of November 2017, which according to the previous close, that is a PE of 15.88. Based on 6 analyst estimates, the consensus EPS for the next quarter is 0.45. The TTM EPS is 5.04, which comes to a TTM PE of 10.65. Historically, the PE high was 22.60 and the PE low was 10.40. If the stock reached its PE low, that would represent a price of 52.43, which is a decrease of -2.35%.

The following are the last four quarter reported earnings per share:
05-31-2018:  1.58
02-28-2018:  1.11
11-30-2017:  1.29
08-31-2017:  1.06

The dividend per share is currently 0.16, which is a dividend yield of 0.30%. Also, the payout ratio is 3.17%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 81.91, which means it is possibly undervalued and has a margin of safety of 34.46%

Indicators to Watch:

Based on the latest filings, there is 0.10% of insider ownership and 84.50% of institutional ownership. Short-interest is 10,808,048, which is 3.29% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.12. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.33

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Fundamental Indicators:

Based on last reported financials, the company's return on assets is 5.99%, profit margin is 6.41%, price-to-sales is 1.13 and price-to-book is 1.35.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 3  :Past Performance Score
 4  :Financial Strength Score
 4  :Future Growth Score
 0  :Dividend Score
 4  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.

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