Berkshire Hathaway Increases Lennar (LEN) Position with $212M Investment Despite Weak Q3 Results

Key Highlights

• Warren Buffett’s Berkshire Hathaway acquired $212.38 million worth of Lennar shares during a four-day period from September 17-21
• The homebuilder’s stock climbed approximately 2.3% during Tuesday’s premarket session after the disclosure
• Third-quarter earnings per share of $1.19 fell short of the $1.28 analyst forecast; revenue of $8.05 billion underperformed expectations
• Order volume declined 9% compared to the prior year, totaling 20,879 homes; the company reduced its annual delivery projections
• Wall Street maintains a Moderate Sell rating on LEN with consensus price targets hovering near $79-$80

In a recent SEC filing, Berkshire Hathaway revealed it purchased $212.38 million in Lennar shares, acquiring 2.67 million Class A shares and 75,021 Class B shares during the period spanning September 17 through September 21, 2026. The transactions were executed at weighted-average prices between $74.80 and $79.41 per share. LEN shares advanced roughly 2.3% to $79.89 during Tuesday’s premarket trading session.

Lennar Corporation, LEN

Berkshire’s insurance subsidiaries executed the stock purchases. While Warren Buffett appears as the reporting person in the filing, he has disclaimed beneficial ownership except for his direct economic interest. Given that Berkshire’s ownership now exceeds the 10% threshold, the conglomerate must report all transactions under Section 16 of SEC regulations.

Prior to this recent acquisition, Berkshire maintained approximately $1.2 billion in Lennar holdings. The latest purchase increases its Class A position to 23.72 million shares, alongside 528,217 Class B shares.

This move strengthens Berkshire’s presence in the residential construction sector. The investment firm 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 missed analyst projections on multiple fronts. GAAP earnings reached $1.19 per share, falling below the $1.28 consensus forecast. Adjusted earnings per share of $1.23 similarly underperformed. Total revenue registered $8.05 billion, representing an 8.6% year-over-year decline and trailing the $8.31 billion estimate.

Chief Executive Officer Stuart Miller acknowledged that market conditions “has deteriorated since our last earnings call.”

New home orders decreased 9% year-over-year to 20,879 units. Home deliveries slipped 3% to 20,840. The average selling price for new orders came in at $359,000, beneath Truist Securities’ $370,000 projection. The sales velocity dropped 12% year-over-year to 4.1 homes per community monthly.

Profit margins contracted to 15.8% from 17.5% in the comparable prior-year period, as the company employed discounts and buyer incentives to accelerate inventory turnover. Lennar finished the quarter with $1.2 billion in cash and $3.6 billion in aggregate liquidity.

Management revised its full-year delivery outlook downward to 80,000-81,000 homes from the previous range of 82,000-83,000 units.

Wall Street Responds

Multiple investment banks reduced their price objectives following the quarterly report. Citigroup retained its Neutral stance while lowering the target to $85. RBC Capital maintained an Underperform rating and decreased its target to $69. Barclays kept its Underweight rating and trimmed the target to $70.

Bank of America highlighted “ongoing pricing pressure despite lower incentive levels,” citing persistent challenges in housing demand and affordability constraints.

According to TipRanks, LEN holds a Moderate Sell consensus among analysts, with one Buy recommendation, seven Hold ratings, and five Sell ratings. The average price target stands around $79-$80, suggesting limited appreciation potential from present levels. Shares have declined approximately 22.9% year-to-date.

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 crossed below the 200-day line. The MACD indicator continues to trade below its signal line. The stock faces resistance near the $88.50 level.

Looking ahead to the fourth quarter, Lennar projects new orders between 19,500 and 20,500 homes, deliveries ranging from 22,000 to 23,000 units, gross margins of 15.5% to 16%, and earnings per share from $1.30 to $1.65.