5 Housing Stocks to Watch as Price Declines Continue

3. Lennar Corporation (NYSE:LEN)

Number of Hedge Fund Holders: 47

Lennar Corporation (NYSE:LEN) is a Florida-based homebuilder that operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. It is an important housing stock to watch in the current market backdrop. 

BTIG analyst Carl Reichardt on September 23 maintained a Buy rating on Lennar Corporation (NYSE:LEN) but lowered the price target on the shares to $92 from $97. The company’s Q3 earnings outperformed expectations, though the management also stressed on adjusting prices and climbing incentives to find a “market clearing price” for homes in production, the analyst told investors. He added that he is lowering his gross margin expectations and trimming his 2022 EPS estimate to $17.57 from $18.09 and 2023 to $12.70 from $15.39, though he continues to favor Lennar Corporation (NYSE:LEN)’s transformation to a “faster-turn, deeper market share, more capital-efficient business”.

According to Insider Monkey’s Q2 data, 47 hedge funds were bullish on Lennar Corporation (NYSE:LEN), compared to 50 funds in the preceding quarter. Greenhaven Associates is the leading stakeholder of the company, with 9.3 million shares worth $657.7 million.