Berkshire Increases Stake in Lennar, But Buying Pace Slows
Berkshire Hathaway increased its stake in homebuilder Lennar to 11.2% by purchasing $53.6 million of Class A shares and an additional $329 thousand of super-voting B shares this week. The total position now stands at 26.6 million shares valued at approximately $2.1 billion as of the latest closing prices, up from a 5.4% stake in Q2 worth $1.2 billion. The pace of Berkshire's purchases has slowed compared to earlier in September when it bought nearly $349 million of Lennar stock over six trading days, averaging about $58 million per day. This week’s average purchase rate is just under $18 million through Wednesday with no reported activity on Thursday. Despite its long-term bet on a housing market recovery, Morgan Stanley has issued an 'underweight' rating for Lennar's stock and set a price target of $65 per share—almost 19% below the current closing price. The U.S. housing market remains under pressure due to rising mortgage rates.
Tickers: $LEN
Topics: Berkshire Hathaway Investment Strategy Lennar Corporation SEC Filings