TLDR
- Berkshire Hathaway bought $212.38 million in Lennar stock between Sept. 17-21, adding to its existing $1.2 billion stake
- LEN stock rose around 2.3% in premarket trading on Tuesday following the disclosure
- Lennar’s Q3 earnings of $1.19 per share missed the $1.28 estimate; revenue of $8.05 billion also fell short
- New orders dropped 9% year-over-year to 20,879 homes; Lennar cut its full-year delivery forecast
- Analysts hold a Moderate Sell consensus on LEN with an average price target of around $79-$80
Berkshire Hathaway disclosed a fresh $212.38 million purchase of Lennar stock, covering 2.67 million Class A shares and 75,021 Class B shares bought between September 17 and September 21, 2026. Weighted-average prices ranged from $74.80 to $79.41 per share. LEN stock was trading up around 2.3% at $79.89 in premarket on Tuesday.
The purchases were made through Berkshire’s insurance subsidiaries. Warren Buffett is listed as a reporting person but disclaimed beneficial ownership beyond his personal interest. Because Berkshire now owns more than 10% of Lennar, it is required to disclose transactions under SEC Section 16 rules.
Berkshire already held roughly $1.2 billion in Lennar before this latest buy, and the new purchase brings its total Class A holding to 23.72 million shares, plus 528,217 Class B shares.
The investment adds to Berkshire’s growing housing sector exposure. It also owns D.R. Horton and completed its $6.8 billion acquisition of Taylor Morrison in July 2026.
Q3 Results Disappoint
Lennar’s Q3 FY2026 results landed below expectations across the board. GAAP earnings came in at $1.19 per share, short of the $1.28 consensus. Adjusted EPS of $1.23 also missed. Revenue was $8.05 billion, down 8.6% year-over-year and under the $8.31 billion estimate.
CEO Stuart Miller said the operating environment “has deteriorated since our last earnings call.”
New orders fell 9% year-over-year to 20,879 homes. Deliveries dropped 3% to 20,840. The average selling price on new orders was $359,000, below the $370,000 estimate from Truist Securities. The sales pace fell 12% year-over-year to 4.1 homes per community per month.
Gross margin declined to 15.8% from 17.5% a year ago, as Lennar leaned on discounts and incentives to move inventory. The company ended the quarter with $1.2 billion in cash and $3.6 billion in total liquidity.
Lennar also cut its full-year delivery forecast to 80,000-81,000 homes, down from its earlier guidance of 82,000-83,000.
Analyst Reaction
Several analysts cut their price targets following the results. Citigroup maintained Neutral and lowered its target to $85. RBC Capital kept Underperform and cut to $69. Barclays held Underweight and reduced its target to $70.
Bank of America pointed to “ongoing pricing pressure despite lower incentive levels,” flagging weak housing demand and affordability headwinds.
LEN carries a Moderate Sell consensus rating on TipRanks, based on one Buy, seven Holds, and five Sells. The average price target sits around $79-$80, implying minimal upside from current levels. LEN is down roughly 22.9% year-to-date.
Technically, the stock remains below its 20-day, 50-day, and 200-day moving averages. A death cross formed in January 2026 when the 50-day SMA crossed below the 200-day. MACD remains below its signal line. Resistance is near $88.50.
For Q4, Lennar is guiding for new orders of 19,500 to 20,500 homes, deliveries of 22,000 to 23,000, gross margins of 15.5% to 16%, and EPS of $1.30 to $1.65.
