Lennar stock jumps after Berkshire Hathaway raises stake

Lennar (LEN) stock rose 5.6% after Berkshire Hathaway disclosed a $212.4M investment in its shares. Berkshire now owns over 10% of Lennar. Lennar reported weaker Q3 results and lowered its 2026 delivery forecast, leading analysts to cut price targets. Despite this, Berkshire's investment signals confidence in Lennar's long-term value.

Lennar (LEN) stock rose in premarket trading after Berkshire Hathaway disclosed a new stake, owning 23.72 million Class A and 528,217 Class B shares. Lennar's Q3 earnings missed estimates, with adjusted EPS of $1.23 and revenue of $8.05 billion. The company expects Q4 new orders of 19,500-20,500 homes and deliveries of 22,000-23,000 homes. Analysts have cut price targets, with a consensus Sell rating and average target of $78.

U.S. stock futures were mixed on Tuesday, with S&P 500 futures rising and Nasdaq 100 futures falling. Treasury Secretary announced sanctions on Iranian airlines and financial institutions, causing energy prices to rise. Several companies reported earnings, including AutoZone and Thor Industries. On Holding (ONON) rose 2.67% after announcing a buyback and new financial targets. Lennar (LEN) gained 1.09% following Berkshire Hathaway's disclosed stake.

Berkshire Hathaway disclosed a $1.2 billion stake in Lennar, purchasing $212.4 million worth of shares in September. Lennar's stock rose 2.1% on Monday and 1.2% overnight. The homebuilder faces challenges from high mortgage rates and weak housing affordability, reporting a 52% drop in Q3 net earnings to $284 million. Lennar's full-year 2026 delivery outlook was lowered to 80,000-81,000 homes.

Lennar (NYSE: LEN) missed fiscal Q3 2026 earnings estimates, reporting adjusted EPS of $1.23 on revenue of $8.05 billion. Shares fell to a 52-week low near $76.07. Other homebuilders like D.R. Horton (NYSE: DHI) and PulteGroup (NYSE: PHM) also reported weak revenue growth and rising cancellation rates due to affordability pressures and high mortgage rates. Lennar's Q4 guidance was cautious, citing labor availability, resale competition, and market conditions as challenges.

Lennar (LEN) reported Q3 gross margin of 15.8% and cut its annual home delivery forecast to 80,000–81,000 from 82,000–83,000. Construction costs fell 6% YoY, but incentives remained at 12% of home value. Deliveries and new orders declined 3% and 9% YoY, respectively. The company is balancing cost savings with affordability pressures.