Core Viewpoint - Bank of America Securities has lowered the target price for Horton Homes from $175 to $165 and for Lennar Homes from $133 to $125, maintaining a "Neutral" rating for both companies [1] Company Summaries - Horton Homes: Target price reduced from $175 to $165, maintaining a "Neutral" rating [1] - Lennar Homes: Target price reduced from $133 to $125, maintaining a "Neutral" rating [1]

Core Insights - Lennar Corporation (LEN) has seen an 11.3% decline in stock price since the announcement of its Q3 fiscal 2025 earnings, outperforming the Zacks Building Products - Home Builders industry but lagging behind the broader Zacks Construction sector and the S&P 500 index [1] Financial Performance - In Q3 fiscal 2025, Lennar's adjusted earnings per share and total revenues missed the Zacks Consensus Estimate by 5.6% and 2.5%, respectively, with year-over-year declines of 48.7% and 6.4% [3] - The average selling price (ASP) of home deliveries decreased by 6.7% year over year to $393,000, leading to home sale revenues of $23.24 billion, down from $24.28 billion a year ago [6] - For Q4 fiscal 2025, Lennar expects the ASP of delivered homes to be between $380,000 and $390,000, down from $430,000 reported a year ago [6] Market Conditions - The U.S. housing market is currently facing affordability challenges, impacting Lennar's business in the near and mid-term [5] - The Federal Reserve recently cut interest rates by 0.25 percentage points, but ongoing market pressures and macro uncertainties continue to affect homebuilders like Lennar [10][11] Profitability and Margins - Lennar's gross margin contracted by 430 basis points to 18% from 22.3% year over year, primarily due to lower revenue per square foot and higher land costs [8] - The company's guidance predicts margins will remain flat at 17.5% in Q4 fiscal 2025, down from 22.1% a year ago [9] Competitive Position - Lennar holds a strong position among large U.S. homebuilders, with competitive advantages including scale, geographic diversification, vertical integration, and financial strength [17][20] - Compared to competitors like D.R. Horton, PulteGroup, and NVR, Lennar's operational scale allows it to navigate housing cycles more effectively [20] Earnings Estimates - Analysts have revised Lennar's earnings estimates for fiscal 2025 and fiscal 2026 down to $8.58 and $9.22 per share, respectively, indicating concerns about the stock's growth potential [13][14]

Core Viewpoint - Lennar announced an offer to exchange the remaining portion of Millrose Properties shares for its class A common stock, following a taxable spin-off completed in February [4] Group 1: Company Actions - The exchange offer pertains to the remaining shares of Millrose Properties, indicating a strategic move by Lennar to consolidate its holdings [4] - The spin-off of Millrose Properties involved the distribution of approximately 80% of the outstanding class A common stock [4]

Core Points - Lennar Corporation is offering to exchange its approximately 20% ownership in Millrose Properties, Inc. for shares of its own Class A common stock, with the Exchange Offer starting immediately and expiring on November 7, 2025, unless extended or terminated [1][2][5] - The Exchange Offer allows Lennar stockholders to exchange shares at a 6% discount, with a limit of 4.1367 shares of Millrose Class A common stock for each share of Lennar Class A common stock tendered [2][3] - The final exchange ratio will be determined based on the average daily volume-weighted average prices of both companies' Class A common stocks on the NYSE during the three trading days prior to the expiration date [3] Exchange Offer Details - The Exchange Offer is registered under the Securities Act of 1933, with a registration statement filed by Millrose with the SEC [4] - The completion of the Exchange Offer is contingent upon the effectiveness of the Registration Statement, which may be delayed due to the current U.S. federal government shutdown [5][6] - Lennar currently holds 33,298,764 shares of Millrose Class A common stock, representing about 20% of the total outstanding shares, and plans to dispose of any unexchanged shares through various methods if the Exchange Offer is not fully subscribed [7] Participation and Advisors - The Exchange Offer is voluntary for Lennar Class A stockholders, and no action is required for those who choose not to participate [8] - Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as dealer managers for the Exchange Offer, while Vestra Advisors, LLC serves as the exclusive financial advisor to Millrose [8]

Group 1: Berkshire Hathaway and Warren Buffett - Warren Buffett is recognized as the greatest investor of all time, with Berkshire Hathaway achieving a compound annual gain of 19.9% from 1965 to 2024, compared to 10.4% for the S&P 500 [1] - Investors often follow Buffett's stock picks, as Berkshire is required to report its holdings quarterly, providing insights into its investment strategy [2] Group 2: Stock Recommendations - The recommended stock to buy is Lennar (NYSE: LEN), a major homebuilder, in which Berkshire invested 7.05 million shares worth nearly $780 million, with a 10% increase since the purchase [4] - Lennar's business model is considered solid, trading at a trailing price-to-earnings ratio of 12.7, and is expected to benefit from macro factors such as decreasing interest rates and a housing shortage of at least 4 million homes [5][6][7] - The stock to avoid is Constellation Brands (NYSE: STZ), which has faced challenges and recently cut its guidance, despite Berkshire holding 13.4 million shares of the company [8][10]

Core Insights - Financial giants are showing a bullish sentiment towards Lennar, with 62% of traders being bullish and only 34% bearish, indicating strong market confidence in the stock [1] - Significant investors are targeting a price range for Lennar between $95.0 and $140.0 over the past three months, reflecting optimistic expectations for the stock's performance [2] - The average open interest for Lennar options is 846.0, with a total trading volume of 6,801.00, suggesting active trading interest in the stock [3] Options Activity - Recent options activity shows a predominance of call options, with 27 calls valued at $1,808,250 compared to only 2 puts valued at $88,118, highlighting a bullish outlook [1] - Notable options trades include a bearish call with a total trade price of $211.5K at a strike price of $140.00 and several bullish calls with significant trade values, indicating mixed sentiments among traders [8] Company Overview - Lennar is one of the largest public homebuilders in the U.S., focusing on various market segments including first-time and luxury homebuyers, and also provides mortgage financing through its financial services segment [9] - The company is involved in multifamily and single-family rental construction and has invested in housing-related technology startups, showcasing its diversified business model [9] Market Ratings - Five market experts have issued ratings for Lennar, with a consensus target price of $125.0, indicating a generally positive outlook among analysts [11] - Individual analyst ratings vary, with targets ranging from $92 to $161, reflecting differing perspectives on the company's future performance [12] Current Market Status - Lennar's current trading volume is 3,568,022, with a price of $117.92, down by -1.83%, suggesting some short-term volatility [14] - The anticipated earnings release is in 69 days, which could impact future trading activity and investor sentiment [14]

Group 1 - Lennar Corporation (NYSE:LEN) is recognized as one of the 13 Safest Stocks to Invest in Now, driven by significant hedge fund interest and a solid return on equity [1] - Keefe, Bruyette & Woods has reiterated its Market Perform rating and set a price target of $125 for Lennar Corporation, citing anticipated delivery losses of 11% and 3.5%, along with a 4% reduction in its 2026 projection and an 18% decrease in its Q4 2025 EPS estimate [2][3] - The company has lowered its full-year delivery guidance by 5-6% due to affordability constraints and unstable economic conditions affecting housing demand, with an anticipated return on equity of 12-13% reflected in the price target [3] Group 2 - Lennar Corporation develops residential land, designs, constructs, and sells single-family and multi-family homes, and manages rental properties for various customer segments, including luxury, first-time, and move-up buyers [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______ To _______ Commission File Number: 1-11749 Lennar Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Core Viewpoint - Warren Buffett's significant investment in Lennar highlights the importance of shareholder yield as a key metric for investors [2][5][7] Shareholder Yield - Shareholder yield measures total cash returned to shareholders as a percentage of market cap, including dividends, stock buybacks, and debt reduction [3] - Lennar's shareholder yield is calculated by combining its dividend yield of 1.6% and an estimated stock buyback yield of 7.1%, resulting in a total shareholder yield of 8.7% [6][7] Company Performance - Lennar paid a dividend of $0.50 per share in Q3 2025, leading to an annualized dividend payout of $2 per share [5] - The company repurchased 4.1 million shares for $507 million in Q3 2025 and is projected to spend approximately $2.4 billion on stock buybacks in the current fiscal year [6] Market Conditions - Lennar's fiscal Q3 revenue from home sales fell 9% year over year, attributed to lower average sales prices and a decrease in gross margins from 22.5% to 17.5% [10] - The average 30-year fixed-rate mortgage rate has recently dropped to a three-year low, which could improve home affordability and benefit Lennar [11] Long-term Prospects - The U.S. housing market faces a shortage, with an estimated need for over 4.7 million new homes, positioning Lennar favorably as one of the largest homebuilders [12]

Market Overview - U.S. stocks closed higher on Friday, with the Dow Jones index gaining approximately 300 points following the release of inflation data [1] - Major indices experienced losses last week, with the Nasdaq Composite declining by 0.7%, the S&P 500 down by 0.3%, and the Dow falling by 0.2% [1] Analyst Insights - Wall Street analysts frequently update stock picks, but their track records in predicting market movements can be inconsistent, leading to confusion among investors [2] - Benzinga's Analyst Ratings API compiles high-quality stock ratings through partnerships with major sell-side banks, providing insights that can serve as trading indicators for outperforming the stock market [3] Top Analyst Picks - Benzinga provides access to the latest analyst ratings, allowing traders to sort by analyst accuracy [4] - JMP Securities maintains a Market Outperform rating on CrowdStrike Holdings, increasing the price target from $500 to $550, indicating a potential upside of around 14% [5] - Citigroup maintains a Buy rating on TE Connectivity, raising the price target from $230 to $250, suggesting a potential upside of about 15% [5] - Piper Sandler reiterates an Overweight rating on Robinhood Markets, increasing the price target from $120 to $140, with an expected surge of around 15% [5] - Stifel maintains a Buy rating on Ciena Corporation, raising the price target from $120 to $152, anticipating a gain of approximately 7% [5] - Wedbush reiterates a Neutral rating on Lennar Corporation with a price target of $130, expecting a 3% gain [7]