Key Takeaways
- Warren Buffett’s Berkshire Hathaway acquired $212.38 million worth of Lennar shares during September 17-21, building on its $1.2 billion position
- Shares of LEN climbed approximately 2.3% during premarket hours on Tuesday after the filing became public
- Third-quarter earnings per share of $1.19 came in below analyst expectations of $1.28; total revenue of $8.05 billion underperformed forecasts
- The homebuilder reported a 9% decline in new orders to 20,879 units and lowered its annual delivery guidance
- Wall Street maintains a Moderate Sell rating on LEN with consensus price targets hovering around $79-$80
Warren Buffett’s Berkshire Hathaway recently revealed a $212.38 million acquisition of Lennar shares, purchasing 2.67 million Class A shares alongside 75,021 Class B shares during the period from September 17 through September 21, 2026. The transactions occurred at weighted-average prices between $74.80 and $79.41 per share. During premarket trading on Tuesday, LEN stock advanced approximately 2.3% to reach $79.89.
The share purchases were executed through Berkshire’s insurance subsidiary entities. While Warren Buffett appears as a reporting individual, he has disclaimed beneficial ownership beyond his direct personal stake. With Berkshire’s ownership now exceeding the 10% threshold, federal regulations under SEC Section 16 mandate disclosure of all transactions.
Prior to this transaction, Berkshire maintained approximately $1.2 billion in Lennar holdings. The recent acquisition increases its total Class A position to 23.72 million shares, complemented by 528,217 Class B shares.
This move strengthens Berkshire’s footprint in the residential construction industry. The conglomerate also maintains a position in D.R. Horton and finalized its $6.8 billion Taylor Morrison acquisition in July 2026.
Third Quarter Performance Falls Short
Lennar’s third-quarter fiscal 2026 performance disappointed on multiple fronts. The company reported GAAP earnings of $1.19 per share, missing analyst consensus of $1.28. Adjusted earnings per share of $1.23 similarly underperformed. Total revenue reached $8.05 billion, representing an 8.6% year-over-year decline and falling below the $8.31 billion projection.
Chief Executive Stuart Miller acknowledged that the business climate “has deteriorated since our last earnings call.”
New home orders decreased 9% from the prior year to 20,879 units. Home deliveries declined 3% to 20,840. The average sales price for new orders came in at $359,000, trailing Truist Securities’ estimate of $370,000. The monthly sales velocity per community dropped 12% year-over-year to 4.1 homes.
Profit margins compressed to 15.8% from 17.5% in the comparable year-ago period, as the company increased promotional incentives and price reductions to clear inventory. Lennar closed the quarter with cash holdings of $1.2 billion and aggregate liquidity of $3.6 billion.
The homebuilder also revised its full-year delivery outlook downward to 80,000-81,000 homes from its previous projection of 82,000-83,000.
Wall Street Responds
Multiple analysts adjusted their valuations downward following the earnings release. Citigroup preserved its Neutral stance while reducing its price objective to $85. RBC Capital maintained its Underperform rating and lowered its target to $69. Barclays continued its Underweight recommendation and trimmed its target to $70.
Bank of America highlighted “ongoing pricing pressure despite lower incentive levels,” citing persistent challenges with housing demand and affordability constraints.
According to TipRanks, LEN receives a Moderate Sell consensus rating, comprised of one Buy recommendation, seven Hold ratings, and five Sell ratings. The average analyst price target centers around $79-$80, suggesting limited appreciation potential from present levels. Year-to-date, LEN has declined approximately 22.9%.
From a technical perspective, the stock trades beneath its 20-day, 50-day, and 200-day moving averages. A bearish death cross pattern emerged in January 2026 as the 50-day simple moving average fell below the 200-day. The MACD indicator continues trading below its signal line. Key resistance appears near $88.50.
Looking to the fourth quarter, Lennar projects new orders between 19,500 and 20,500 homes, deliveries of 22,000 to 23,000 units, gross margins of 15.5% to 16%, and earnings per share ranging from $1.30 to $1.65.
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