Executive Assistant

Lennar (LEN) cuts delivery forecast. Can construction savings offset heavy incentives? Lennar Corporation (NYSE:LEN) cut its delivery outlook despite cheaper, faster construction. Incentives near 12% and higher land costs constrain margins. Sustainable orders and lower concessions will determine whether efficiency gains lift profits. Published September 20, 2026 at 4:43 pm EDT Lennar Corporation (NYSE:LEN) is building homes faster and more cheaply, but affordability pressures continue to limit profitability. On September 16, the homebuilder reported fiscal third-quarter gross margin on home sales of 15.8% and reduced its annual delivery target to 80,000-81,000 homes from 82,000-83,000. The latest quarter illustrates the trade-off. Construction costs per square foot fell 6% year over year, while incentives remained approximately 12% of home value. Lennar Corporation delivered 20,840 homes, down 3% year over year, and generated 20,879 new orders, down 9%. Lower costs are helping preserve sales, but the reduced outlook suggests that operational improvements alone cannot overcome weaker purchasing power. The investment question is whether those savings can eventually support better margins without requiring deeper concessions to buyers. Bull case. Lennar Corporation is making measurable progress on execution. Construction costs per square foot declined another 1% sequentially, bringing the reduction since the fourth quarter of 2023 to 14%. Construction cycle time shortened to 116 days from 121 days in the previous quarter and 126 days a year earlier. Faster construction can reduce the time capital remains tied up in each home. Completed, unsold inventory also declined to 1.8 homes per community from 2.1 in the previous quarter, reducing the stock of finished homes awaiting buyers. The strategy depends on keeping production aligned with sales. Lennar Corporation reported matching starts and sales rates of 4.1 homes per community per month. Maintaining that balance can support predictable workloads for construction partners and help preserve purchasing efficiencies. There are early signs that cost savings are reaching profitability. Gross margin improved from 15.6% in the second quarter to 15.8%, while incentives moderated from approximately 12.9% to 12%. If concessions continue easing while construction savings persist, more of the operating improvement could reach earnings. Bear case. The year-over-year comparison remains weaker. Gross margin fell from 17.5% despite lower construction costs. Lennar Corporation attributed the decline primarily to lower revenue per square foot and higher land costs, partly offset by construction savings. That distinction matters. A 6% reduction in construction costs per square foot does not represent a 6% reduction in total home costs. Land expenses and selling prices can move against the builder even as construction becomes more efficient. Operating expenses add pressure. Selling, general and administrative expenses increased to 9.2% of home-sales revenue from 8.2% a year earlier. Lower revenue and higher marketing and selling expenses reduced the benefit of scale. Lennar Corporation expects fourth-quarter gross margin of 15.5%-16.0%, compared with 15.8% in the third quarter. Expected deliveries of 22,000-23,000 homes would exceed the third-quarter total, but the guidance offers little evidence of an immediate margin recovery. Incentives also remain central to affordability. Removing them too quickly could weaken orders; maintaining them could leave construction savings supporting customer purchasing power rather than expanding profitability. The lower annual delivery target makes that balance harder to manage. Hedge fund sentiment. The filings available so far reflect positions held before Lennar Corporation reported its fiscal third-quarter results. Insider Monkey's database showed 65 hedge funds holding Lennar Corporation at the end of 2Q2026, down from 66 funds three months earlier. Conclusion. Lennar Corporation is improving construction efficiency, but pricing power remains constrained. Faster cycles and lower completed inventory could improve capital efficiency, while sustained incentive reductions would provide stronger evidence of margin recovery. The decisive combination is stable orders, achievable delivery targets, and better profitability after land and selling costs.

LEN, ARRY stocks hit New lows as price target cuts pile up - what's driving the selloff? Published: Sep 19 2026, 12:00 AM IST * FB * TW * Linkdin * Whatsapp * GNFollow Us UBS downgraded Array Technologies to 'Neutral' from 'Buy,' citing concerns about future cash flows, while weak margins led Wall Street to reduce the target on Lennar's stock. * UBS said a change in how Array pays dividends on its preferred stock has weakened its outlook for how the company can use future cash flow. * Barclays cut Lennar's price target to $70 from $79 and maintained an 'Underweight' rating, saying uncertainty around the homebuilder is 'only growing.' * RBC Capital cut LEN's price target to $69 from $85 and maintained an 'Underperform' rating. Array Technologies (ARRY) and Lennar (LEN) shares sank to fresh lows on Friday as analyst downgrades and price-target cuts added to concerns around the companies, pushing ARRY to its lowest level in more than 17 months and LEN to a nearly four-year low. At the time of writing, LEN shares were down 4.5% while ARRY stock slumped 7%. UBS slashes ARRY target by 50%. UBS downgraded Array Technologies to 'Neutral' from 'Buy' and slashed its price target to $5 from $10. The firm said a change in how Array pays dividends on its preferred stock has weakened its outlook for how the company can use future cash flow. Array's preferred dividends switched from being added to the value of the preferred shares to being paid in cash starting in August. The company expects to pay about $12 million for the remainder of 2026. UBS estimates these payments will total roughly $162 million through 2030, consuming about 25% of its projected cumulative free cash flow, according to Investing.com. While UBS believes Array can afford the payments, it said they leave less cash to reduce debt, invest in growth, and pursue acquisitions. Retail sentiment surrounding ARRY on Stocktwits remained 'bearish' over the past 24 hours. The stock has crashed 60% so far in 2026. Lennar's weak Q3 margins worry wall street. Barclays cut Lennar's price target to $70 from $79 and maintained an 'Underweight' rating, saying uncertainty around the homebuilder is "only growing." The firm sharply lowered its fiscal 2027 estimates, citing weaker margins and higher costs associated with Lennar's land-banking strategy. BTIG also lowered the target to $63 from $67 and kept a 'Sell' rating. The brokerage said Lennar's core homebuilding business missed expectations across the board as demand weakened more than anticipated. Meanwhile, RBC Capital cut the price target to $69 from $85 and maintained an 'Underperform' rating, citing weaker Q4 guidance and continued pressure on homebuilding margins. Lennar reported Q3 revenue of $8.04 billion, below estimates of $8.35 billion and marking its third consecutive quarterly revenue miss, according to Fiscal.ai. Earnings of $1.23 per share also fell short of expectations. Retail sentiment surrounding LEN on Stocktwits was also 'bearish.' The stock is down 27% so far in 2026. Also read: Tesla Q3 Deliveries Could Beat Expectations, Says Barclays - Analyst Calls Fundamentals An 'Afterthought' To AI Story For updates and corrections, email newsroom[at]stocktwits[dot]com.< Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business. 0 Comments / 0 New

Lennar Corporation (NYSE:LEN) Stock Outlook: Barclays Lowers Price Target Amidst housing Market Headwinds. Sep 18, 2026 Market News FMPLennar Corporation (NYSE:LEN) Stock Outlook: Barclays Lowers Price Target Amidst... * Analyst Downgrade: Barclays lowered the price target for Lennar Corporation (NYSE:LEN) to $70.00, reflecting concerns over the housing market outlook. * Weak Financial Performance: The homebuilder reported a significant 52% drop in third-quarter net earnings to $284.00 million and missed EPS estimates with $1.23, alongside an 8.6% decline in total revenues to $8.05 billion. * Market Headwinds & Lowered Guidance: Facing rising mortgage rates and weaker consumer confidence, Lennar saw a 9% drop in new home orders and subsequently lowered its full-year delivery forecast to between 80,000 and 81,000 homes. Lennar, a major homebuilder in the United States, faces a revised stock outlook from analysts. On September 18, 2026, the analyst firm Barclays lowered its price target for Lennar to $70.00. This adjustment came at a time when the company's stock was trading at a price of $79.70 per share. The price target reduction follows a challenging financial report from the company. Lennar reported a significant 52% drop in its third-quarter net earnings, which fell to $284.00 million. Its adjusted earnings per share of $1.23 also missed the Zacks Consensus Estimate of $1.29, as highlighted by Zacks. Total revenues for the quarter declined 8.6% to $8.05 billion. Company leadership attributes these results to difficult market conditions. CEO Stuart Miller points to rising mortgage rates and weaker consumer confidence, which are causing potential buyers to delay purchases. This slowdown in housing demand is reflected in a 9% year-over-year drop in new home orders, which totaled 20,879 for the quarter. To maintain sales, Lennar is using incentives of approximately 12% and adjusting its home prices. This strategy resulted in a 3% fall in the average sales price to $372,000.00. The company's gross margin on home sales, which measures profitability from selling homes, was reduced to 15.8% from 17.5% a year earlier. Reflecting these ongoing pressures, Lennar has lowered its guidance for the full fiscal year. As noted by Proactive Investors, the company now expects to deliver between 80,000 and 81,000 homes in 2026. This is a reduction from its previous forecast of 82,000 to 83,000 homes. Market news and analyst rating coverage Gordon Thompson covers analyst rating changes, price-target updates, and company news for the FMP blog. His work focuses on summarizing the latest broker actions and market developments into accessible, data-driven updates for investors and analysts. Financial data for every need. Real-time quotes and 30+ years of historical data, including prices, fundamentals, and insider transactions - all accessible via API. Stock Screener 2017-2026 (C) FMP