Lennar Stock lacks Q3 goals despite Buffett Stake Boost – Magic Post

Lennar Stock lacks Q3 goals despite Buffett Stake Boost

 – Magic Post

Lynar today

Lennar Corporation Logo
127.17 dollars 5.70 (-4.29 %)

As of 09/19/2025 03:59 pm

52 weeks
98.42 dollars

189.65 dollars

Profit
1.57 %

P/E ratio.
12.57

The target price
128.33 dollars

On August 14, Regulatory deposits It revealed that Berkshire is from Warren Buffett Hathaway NYSE: BRK.B A share of about $ 800 million has accumulated in the United States of America Lynar New York: Lin. These files have a delay and show Berkshire’s position as of June 30.

Certainly, Berkshire is happy to perform construction shares since then. From June 30 to September 18, Lynar has It provided a total return of about 21 %. This comes at a time when home construction shares are strongly recovered, with Prinebails SPDR S & P Nysearca: xhb More than 16 % rises during that period.

I expected expectations of interest rates shares at home.

However, September 18 also celebrated a large test for the light since Berkshire revealed its location. The company has reported Q3 2025 profits after the market closed, providing the latest housing market health indicator. Let’s dismantle the results and gain an updated perspective on the arrow.

Lennar gets almost 50 % profit, as sales prices are drowned

In Q3, Lynar Its revenues were reported 8.8 billion dollarsA decrease of about 6.5 %. These moderate expectations were lost 9 billion dollars, or a decrease of only 4.4 %. After excluding mark gains to the market for their technological investments, the equivalent Lennar profits of the share (EPS) amounted to $ 2.00. This was a 49 % decrease from the previous year. In addition, the number was absent from the 2.14 dollars of Wall Street estimates, or a 45 % decrease.

It is worth noting that these significant declines in sales came and the arrow’s profitability came despite the fact that Lennar has handed over 21,584 homes, a little more than it was in the third quarter of 2024. Partially because the company provides great discounts, regretted the average home selling price of more than 9 % to 383,000 dollars.

This was a large inhibitory on the Grusion of the total Lennar, which decreased by 500 basis points to 17.5 %. clearly, The demand for soft housing It puts great pressure on the upper and lower Lennar lines. However, the low interest rates are one of the winds that the company enjoys alongside it.

Useful interest rates have decreased, but Lennar projects are stable Q4

With the federal reserve dropping interest rates by 25 basis points, home builders like Lennar got exactly what they wanted. These cuts increase the company’s ability to finally finance new construction projects and increase sales with low mortgage rates.

However, mortgage rates are far from an ideal relationship with the FBI’s money rate. However, they have already begun to decrease in anticipation of reducing the federal reserve rate.

As of September 18, the fixed mortgage rate decreased for 30 years 9 basis points to 6.26 % In one week. In general, the average of 30 years has decreased by about 50 basis points since the end of June.

It is worth noting that Lawrence Yun in the National Association of Real Estate Bidgers described 6 % as a “magic” mortgage rate that could rule home sales. He now believes 30 years It can fall on this rate By the end of 2025.

However, Lynar does not expect her business to improve in the fourth quarter. It expects between 22,000 and 23,000 homes, which is approximately 4 % increase at the center point compared to the actual delivery of the Q3. You see the total margin by 17.5 % and the average selling prices between $ 380,000 and $ 390,000.

This indicates that the sharp discounts offered by the company will continue. In general, the lack of improvement in Lynar’s expectations despite the decrease in stock rates has decreased by more than 3 % in post -hours trading on September 18.

Useful interest rates remain a key to a lighter or suffering

Lynar stock expectations today

The stock price expectations for 12 months:
128.33 dollars
Hold
Based on 17 analyst classifications
The current price 127.17 dollars
High expectations $ 173.00
Average expectations 128.33 dollars
Low expectations 95.00 dollars

Lynar stock forecast details

Looking further, put the markets The possibility of cutting 25 points In October 92 %. They also see 82 %, the possibility of the Federal Reserve Fund decreased 50 basis points From the current levels in December. These discounts will be welcomed by Lennar.

However, these expectations can turn significantly based on new data, and to predict interest rate movements is very difficult. However, in general, markets and predictors in the field of federal reserve see that the average federal reserve funds are largely transferred over the coming years.

Lennar is trading a price front (P/E) about 15x. This is approximately 50 % higher than the average P/E forward over the past three years is about 10.3X. This indicates that the markets put a lot of weight on the ability of Lynar to take advantage of the low interest rates.

Lynar’s profits can recover greatly if interest rates move in the right direction and avoid recession. This may allow stocks to return to the highest levels ever, which requires about 32 %. However, if this does not happen, there may be significant selling pressure on the arrow.

Before you think about Lennar, you will want to hear this.

Marketbeat follows the best research analyst at Wall Street, the best performance in Wall Street and the stocks they recommend to their customers on a daily basis. Marketbeat has identified the five shares whom the top analysts quietly whispered to their customers to buy now before hunting the broader market … Lennar was not in the list.

While Lennar currently has a suspended classification among analysts, higher -rated analysts believe that these five stocks buy better.

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