Lennar Corporation (NYSE:LEN) shares traded higher in Tuesday premarket trading after Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) disclosed additional purchases of the homebuilder’s stock.
The fresh buying comes as Lennar faces housing-market weakness, a bearish analyst backdrop and selling pressure tied to allegations involving transactions with its Millrose spinoff.
Lennar is the second-largest homebuilder in the United States by home closings and revenue.
Berkshire Continues Building Lennar Stake
Berkshire Hathaway bought another 2.42 million Lennar shares on Oct. 1 and Oct. 2 at an average price of about $79.65, according to its latest insider filing.
The purchases lifted Berkshire’s holdings to 28.44 million Class A shares and 568,028 Class B shares.
Berkshire had also accumulated Lennar shares throughout September, including about 1.68 million shares from Sept. 23 through Sept. 25.
Short Report Adds Pressure
Lennar is also trying to stabilize sentiment after Hunterbrook Media alleged that more than 700 finished-home sales worth roughly $200 million were routed to Millrose Properties Inc. (NYSE:MRP) over about a month.
Hunterbrook said at least 356 purchases occurred in the final week of Lennar’s fiscal third quarter, helping it clear the low end of delivery guidance by just 340 homes while missing four other financial targets.
Housing Headwinds Persist
Lennar continues to navigate a softer U.S. housing market marked by mortgage rates above 7%, affordability constraints and higher costs.
Management has cited data-center-driven labor shortages, immigration enforcement, tariffs and inflation as pressure points in certain markets. The company also said the resale market has become more competitive.
Lennar has responded by lowering construction costs and shortening cycle times. Cycle time fell to a record 116 days, while construction costs per square foot improved 6% year over year.
CEO Stuart Miller said the operating environment "has deteriorated since our last earnings call."
Technical Setup Remains Weak
Lennar remains below its major moving averages, trading 6% below the 20-day SMA, 9.8% below the 50-day, 12% below the 100-day and 19.9% below the 200-day SMA.
The 50-day SMA remains below the 200-day average following a January death cross, while MACD is below its signal line with a negative histogram.
Shares are trading near their 52-week low of $73.75, with key resistance near $89.50.
Analysts Remain Cautious
Lennar carries a Sell consensus rating with an average price target of $76.18, based on targets ranging from $65 to $94 across 22 analysts.
Morgan Stanley initiated coverage with an Underweight rating and a $65 target on Oct. 1.
Keefe, Bruyette & Woods maintained Underperform and lowered its target to $75 on Sept. 22, while Citigroup maintained Neutral and cut its target to $85 on Sept. 21.
LEN Price Action: Lennar shares were up 1.18% at $75.31 during premarket trading on Tuesday. The stock is trading near its 52-week low of $73.75, according to Benzinga Pro data.
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