Lennar Stock (LEN) on November 29, 2025: Exchange Offer, CEO Change and Q4 2025 Earnings Set-Up

Published: November 29, 2025

Lennar Corporation (NYSE: LEN), one of the largest U.S. homebuilders, heads into the final weeks of 2025 with its stock stabilizing after a sharp rebound, an oversubscribed share-exchange transaction, an imminent leadership transition, and persistent questions about housing affordability and margins.

As of Friday’s close (November 28), Lennar stock finished at $131.30, essentially flat on the day, with about 5.1 million shares changing hands. The stock now sits roughly 26% below its 52‑week high of $177.15, but well above its 1‑year low of $98.42. ^[1]

At this level, Lennar carries a market capitalization of around $32–33 billion, trades at roughly 13x trailing earnings and yields about 1.5% via a quarterly dividend of $0.50 per share. ^[2]

Below is a breakdown of the key developments investors are watching around Lennar stock as of November 29, 2025.

Lennar stock today: price, valuation and recent performance

Lennar’s Class A shares closed Friday at $131.30, up 0.02% in the regular session, with an intraday range between $129.79 and $131.43. ^[3]

Key snapshot metrics:

Share price: $131.30 (Nov 28, 2025 close) ^[4]
Market cap: ~$32.4 billion ^[5]
Trailing P/E: ~12.9x; forward P/E: ~15.5x ^[6]
Dividend yield: ~1.52% on an annual dividend of $2.00 per share ^[7]
52‑week range: $98.42 – $177.15 ^[8]
Average daily volume: ~5.1 million shares ^[9]

Over the last year, Lennar shares are down roughly 20–22%, even after a recent rally, according to performance data from Investing.com. ^[10] Longer term, a Simply Wall St analysis notes that Lennar has delivered about 80%+ total return over five years, underscoring how cyclical swings have played out within a still-constructive multi‑year housing story. ^[11]

Millrose exchange offer: final results and what they mean for Lennar

The most immediate corporate development for Lennar stock is the completion of an oversubscribed exchange offer involving Millrose Properties, Inc. (NYSE: MRP), a land‑banking and real estate platform spun off from Lennar earlier this year.

Background: Millrose spin-off

In February 2025, Lennar completed the spin‑off of Millrose, distributing about 80% of Millrose stock to Lennar shareholders. ^[12]
Lennar retained roughly 20% of Millrose (33,298,764 Class A shares) with the intent to dispose of that stake in a tax‑efficient way. ^[13]

On October 10, 2025, Lennar launched an exchange offer allowing holders of Lennar Class A shares to tender them in exchange for Millrose stock at an effective 6% discount, subject to an upper exchange ratio cap of 4.1367 Millrose shares per Lennar share. ^[14]

Final terms and participation

On November 26, 2025, Lennar announced the final results of the exchange offer: ^[15]

Lennar accepted 8,049,594 Lennar Class A shares from participating shareholders.
In return, it delivered 33,298,754 Millrose Class A shares (its entire remaining stake).
A total of 85,296,924 Lennar shares were validly tendered and not withdrawn, implying the offer was significantly oversubscribed.
The final proration factor for non–“odd lot” holders was 8.604228%, meaning most large shareholders only had a small portion of their tendered shares accepted.
“Odd‑lot” holders (fewer than 100 shares) who tendered all shares were exempt from proration and had all their shares accepted.

From an equity perspective, the transaction:

Removes Lennar’s residual Millrose stake from its balance sheet.
Concentrates Lennar’s share base by moving over 8 million shares into corporate hands, effectively lowering the free float once those shares are canceled or held off‑market.
Completes Lennar’s strategic separation from a capital‑intensive land‑banking business, while leaving ongoing commercial ties between the two companies’ ecosystems. ^[16]

For shareholders, the exchange offer functioned like a targeted buyback plus spin‑off clean‑up: participants swapped Lennar into a high‑yielding Millrose REIT with a roughly 9%+ dividend yield, while non‑participants ended up with a slightly more capital‑light Lennar and a lower share count. ^[17]

Leadership transition: Co‑CEO Jonathan Jaffe to retire

Corporate governance is also in flux. On November 14, 2025, Lennar announced that Jonathan (Jon) Jaffe, Co‑Chief Executive Officer and President, will retire effective December 31, 2025, ending a 42‑year career at the company. ^[18]

Key points from the announcement:

Jaffe will step down as Co‑CEO, President and Board Director at year‑end. ^[19]
Stuart Miller, currently Executive Chairman and Co‑CEO, will remain as Executive Chairman and sole CEO, with no plans to appoint a new co‑chief executive. ^[20]
Management framed the transition as part of a push to “streamline leadership at the top” and rebuild cost structure to support more affordable housing. ^[21]

Jaffe has been central to Lennar’s operational playbook, particularly in California and in integrating acquisitions. The company is clearly signaling continuity with Miller’s long‑tenured leadership, but the retirement also underscores management’s intent to simplify the org chart as it leans harder into efficiency, technology and affordability in a tougher housing environment. ^[22]

2025 results so far: steady volumes, weaker margins

Lennar’s 2025 financials tell a consistent story: volumes are holding up, but pricing and margins are under pressure as the company leans on incentives and mortgage‑rate buydowns to keep homes affordable.

Q1 2025: solid growth, margin disappointment

For the first quarter of 2025, Lennar reported: ^[23]

EPS: $1.96 per diluted share ($2.14 excluding mark‑to‑market tech investment losses).
Net earnings: $520 million.
Revenue: $7.6 billion, up about 5% year‑over‑year.
Deliveries: 17,834 homes, up from 16,798 in the prior year.

However, gross margins on home sales came in below expectations after heavier use of incentives and rate buydowns, prompting a negative reaction in the stock even though earnings beat consensus. Reuters and Barron’s both highlighted margin pressure and affordability challenges as drivers of investor concern. ^[24]

Q2 2025: affordability pressure intensifies

In the second quarter of 2025, Lennar’s numbers continued the same pattern: ^[25]

EPS: $1.81 (vs. $3.45 a year earlier); $1.90 excluding mark‑to‑market tech losses.
Net earnings: $477 million (down from $954 million).
Total revenue: $8.4 billion (down from $8.8–$8.9 billion).
New orders: Up 6% to 22,601 homes.
Deliveries: Up 2% to 20,131 homes.
Average selling price: Down to $389,000, from $426,000 a year earlier.
Homebuilding gross margin:17.8%, vs. 22.6% in Q2 2024.

Management explicitly tied the lower prices and margins to a softer housing market, elevated mortgage rates and weaker consumer confidence, noting that Lennar deliberately used incentives to drive volume and maintain an “even‑flow” production model. ^[26]

Even in that tougher backdrop, Lennar continued to lean into capital returns and balance‑sheet strength:

Share repurchases: 4.7 million shares for $517 million in Q2 (average price ~$109.79). ^[27]
Debt metrics: Homebuilding debt‑to‑capital about 11%, with $5.4 billion in liquidity and a $3.0 billion revolver. ^[28]

Q3 2025: margins drift lower, but operations remain tight

For the third quarter ended August 31, 2025, Lennar reported: ^[29]

EPS: $2.29 (vs. $4.26 a year earlier); $2.00 excluding mark‑to‑market tech gains.
Net earnings: $591 million (vs. $1.2 billion).
Total revenue: $8.8 billion, down about 6–7% year‑over‑year.
New orders: Up 12% to 23,004 homes.
Deliveries: 21,584 homes, roughly flat year‑over‑year.
Backlog: 16,953 homes, valued at $6.6 billion.
Homebuilding gross margin:17.5%, down from 22.5% in Q3 2024.
SG&A as % of home sales: 8.2%, up from 6.7%.

Average selling price fell to about $383,000, versus $422,000 a year ago, as Lennar continued to use incentives, including mortgage‑rate buydowns, to keep demand flowing. ^[30]

On the efficiency side, the company has been aggressively tuning its machine:

Cycle time: Improved to 126 days, the shortest in Lennar’s history.
Inventory: Fewer than two completed, unsold homes per active community, in line with historic norms. ^[31]
Share repurchases: Another 4.1 million shares at an average price of ~$122.97, totaling $507 million. ^[32]

Management has consistently argued that this combination—tight inventory, faster cycle times, and scale‑driven cost controls—will position Lennar to expand margins when the interest‑rate and affordability backdrop improves. ^[33]

Q4 2025 guidance and earnings expectations

Looking ahead, Lennar has guided to a relatively steady—but not booming—fourth quarter.

From its Q3 release and subsequent commentary, Lennar expects for Q4 2025: ^[34]

New orders: 20,000 – 21,000 homes.
Deliveries: 22,000 – 23,000 homes.
Average selling price: $380,000 – $390,000.
Homebuilding gross margin: About 17.5%, roughly flat vs. Q3.
SG&A (as % of home sales): 7.8% – 8.0%.
Financial Services operating earnings: $130 – $135 million.

MarketBeat data shows Lennar’s own guidance for Q4 EPS in a range of $2.10–$2.30, notably below the earlier consensus near $2.74, implying a significant year‑over‑year decline versus last year’s Q4 EPS above $4.00. ^[35]

StockAnalysis lists December 17, 2025 as the expected Q4 earnings date, though Lennar has not yet published a formal press release confirming that timing. ^[36]

Meanwhile, Keefe, Bruyette & Woods recently cut its Q4 2025 EPS estimate by about 18%, citing lower expected deliveries and reduced contributions from financial services and other income. ^[37]

What Wall Street thinks: “Hold” consensus and modest downside targets

Across major data providers, Lennar currently carries a consensus “Hold” rating:

MarketBeat cites 19 analysts with an average 12‑month price target around $121.75, implying ~7% downside from current levels. ^[38]
TipRanks reports an average target of $122–123, with a high of $161 and low of $92, again suggesting mid‑single‑digit downside at current prices. ^[39]
Investing.com and Public.com similarly show a neutral or “Hold” consensus and average targets clustered around $125–128. ^[40]

In other words, most analysts see Lennar as fairly valued to slightly overvalued, after a strong multi‑year run and despite the recent pullback.

Valuation work from Simply Wall St (via Sahm Capital) underscores how mixed the picture is: ^[41]

A DCF (discounted cash‑flow) model pegs fair value around $81.57 per share, implying Lennar could be 50%+ overvalued on long‑term cash‑flow assumptions.
A P/E‑based comparison, however, finds Lennar trading at about 11.9x earnings versus an estimated “fair” multiple of 16.8x, suggesting meaningful undervaluation on that metric.

Combined with StockAnalysis’ snapshot of ~13x trailing earnings and a modest dividend yield, Lennar looks neither obviously cheap nor clearly expensive—more like a cyclical stock priced for mid‑cycle earnings and moderate risk. ^[42]

Institutional flows: Berkshire, funds and a concentrated shareholder base

Lennar is heavily owned by institutions, and recent filings show active repositioning:

Data from Fintel indicates ~1,680+ institutional owners holding around 250.8 million Lennar shares in aggregate. ^[43]
Berkshire Hathaway disclosed ownership of 7,050,950 Lennar shares as of September 30, 2025, valued around $889 million, and slightly increased its stake (by 0.03%) versus the prior quarter. ^[44]

Recent 13F‑linked news includes:

Boston Partners cut its Lennar stake by 73.2% in Q2, now holding 289,337 shares worth about $32 million. ^[45]
Ceredex Value Advisors trimmed its position by 7.6% to 307,068 shares, valued near $34 million. ^[46]
Prudential Financial increased its holding by 11.9% in Q2 to 147,681 shares, worth around $16.3 million. ^[47]
The Employees Retirement System of Texas initiated a fresh position of 1,942 shares, valued around $215,000. ^[48]

The mix of select funds trimming exposure and others adding or initiating stakes, alongside Berkshire’s continued presence, supports the narrative that Lennar has become a core but controversial cyclical value holding: widely owned, with active debate over where the housing cycle heads next.

Dividend, buybacks and balance sheet strength

From a capital‑return perspective, Lennar is leaning on both dividends and repurchases:

The Board declared a $0.50 quarterly dividend on September 26, 2025, payable October 27 to shareholders of record October 10. ^[49]
Lennar has now paid $0.50 per quarter consistently throughout 2024 and 2025, for an annualized dividend of $2.00 per share (yield ~1.5% at current prices). ^[50]
Dividend.com estimates a forward yield of about 1.5% and highlights a 10% dividend CAGR over the last three years, with a payout ratio in the low‑20% range, indicating room for continued growth if earnings stabilize. ^[51]

On top of that, Lennar has been aggressively buying back stock:

Q2 2025: 4.7 million shares repurchased for $517 million. ^[52]
Q3 2025: 4.1 million shares repurchased for $507 million. ^[53]

Even before the Millrose exchange offer, Lennar was thus effectively shrinking its share base—an important offset to lower margins, provided the cycle doesn’t deteriorate sharply.

Housing backdrop: incentives up, affordability down

Lennar operates in a housing market that remains structurally undersupplied—but cyclically stressed.

Several recent reports highlight the industry’s paradox:

A Wall Street Journal piece noted that completed new‑home inventory has climbed to its highest levels since the post‑2009 recovery, even as affordability remains stretched. Builders, including Lennar, have been offering aggressive mortgage‑rate discounts (sometimes below 4%) and other incentives, yet some buyers still balk at prices. ^[54]
Reuters’ coverage of Lennar’s Q1 results emphasized that high mortgage rates and elevated home prices continue to keep many first‑time buyers on the sidelines, pushing builders to cut prices and accept thinner margins. ^[55]
Sector commentary from Evercore ISI, cited by Invezz, flagged near‑term headwinds for U.S. homebuilder stocks, despite robust profitability and strong capital returns, prompting downgrades across the group. ^[56]

Lennar’s own numbers mirror this environment: average selling prices down roughly 9–10% year‑over‑year in Q2 and Q3, and gross margins down about 500 basis points vs. 2024 levels, even as orders and deliveries largely hold steady. ^[57]

Management has repeatedly pointed to Fed rate cuts and recent declines in market mortgage rates as reasons for cautious optimism going into 2026, but the company is not banking on a quick snap‑back. Its guidance assumes continued incentivizing and margin pressure through at least Q4 2025. ^[58]

Key risks and opportunities for Lennar stock

Putting the pieces together, investors in Lennar stock today are balancing several cross‑currents:

Upside drivers

Structural U.S. housing shortage: Years of under‑building, especially at the entry‑level price point, support longer‑term demand for new homes. ^[59]
Scaled, efficient operator: Record‑low cycle times, disciplined inventory management and a strong balance sheet give Lennar the flexibility to outlast weaker competitors. ^[60]
Capital returns: Regular dividends plus substantial buybacks (and the Millrose exchange) support per‑share metrics. ^[61]
Berkshire backing: Ongoing ownership and modest incremental purchases by Berkshire Hathaway reinforce the view that long‑term value remains in the name, even if the near‑term path is bumpy. ^[62]

Downside and uncertainty

Margin compression: Gross margins have slid from the low‑20s to the high‑teens, and 2025 guidance suggests little near‑term relief. ^[63]
Affordability and demand risk: Higher mortgage rates, sticky home prices and weakening consumer confidence could still lead to slower orders or deeper discounting. ^[64]
Valuation ambiguity: DCF‑style models see Lennar as meaningfully overvalued, while multiple‑based comparisons see it as modestly undervalued. The analyst consensus “Hold” and targets below the current price reflect that tug‑of‑war. ^[65]
Leadership transition: Jaffe’s retirement may prove seamless, but any perception of execution missteps during the transition could weigh on sentiment. ^[66]

Bottom line: Lennar stock heading into Q4 earnings

As of November 29, 2025, Lennar stock sits in a nuanced spot:

The Millrose exchange offer has been finalized, leaving Lennar with a cleaner, more focused homebuilding, financial services and multifamily platform. ^[67]
A major leadership change is scheduled for year‑end, but with continuity at the top through Executive Chairman and soon‑sole CEO Stuart Miller. ^[68]
Margins are under pressure, yet volumes, balance sheet strength and capital returns remain robust. ^[69]
The analyst community is broadly neutral, with price targets clustered below the current share price and a consensus of “Hold.” ^[70]

For investors following Lennar stock into its expected Q4 2025 earnings report in mid‑December, the key questions will likely be:

How resilient are orders as incentives persist and mortgage rates drift lower?
Can Lennar stabilize or slowly rebuild gross margins around the 17–18% level?
Does management update its 2026 outlook in a way that supports—or undermines—the current valuation?

Until those answers arrive, Lennar looks like a high‑quality, well‑capitalized homebuilder priced roughly in line with a mid‑cycle outlook, with considerable sensitivity to how the next leg of the U.S. housing cycle unfolds.

LENNAR Q2 FY2025 Financial Results - LEN Stock Earnings Report Analysis