More analysts could chime in with price-target cuts
KBW downgraded Lennar Corp(NYSE:LEN) stock to "market perform" from "outperform," and cut its price target to $141 to $152. In response, the stock was last seen down 1.2% to trade at $123.63 at last check.
Coming into today, 12 of the 19 analysts in coverage already rated LEN a "hold." However, the equity's 12-month consensus target price of $152.51 represents a 22% premium to current levels, suggesting there's still room for price-target cuts.
The shares carry a 20.7% year-over-year deficit, and have struggled to break above the $130 level since December. This region yesterday rejected the security's bounce off its March 4, 52-week low of $116.67 to their highest level since February, with added pressure form the 40-day moving average.
The options pits already lean bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Lennar stock sports 50-day put/call volume ratio of 1.02 that sits higher than 86% of readings from the past 12 months.