Q2 STOCKS TO BUY

Lennar Stock Moves Higher on Dividend Hike

The equity sports an over 45% year-over-year lead

Digital Content Manager
Jan 13, 2022 at 10:48 AM
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The shares of Lennar Corporation (NYSE:LEN) are up 2.4% to trade at $110.56 at last check, after the home construction company increased its annual dividend by 50% to $1.50 per share.

The security has been volatile since notching a Dec. 13, all-time high of $117.50, pulling all the way back to the $100 level before rallying again over the past few days. Lennar stock is now looking to notch its fourth-straight win, and currently sports a 45.8% year-over-year lead.

The brokerage bunch is relatively split towards LEN, with seven of the 12 in question carrying a "buy" or better rating, while the remaining five said "hold." Should some of those firms start to change their tune, the security could climb even higher. The 12-month consensus target price of $131 is already a 19% premium to current levels, though.

A shift in the options pits would also create tailwinds for Lennar stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LEN sports a 10-day put/call volume ratio of 1.75, which sits higher than 98% of readings from the past year. In other words, long puts have rarely been more popular.

Lastly, the security is seeing attractively priced premiums. LEN's Schaeffer's Volatility Index (SVI) of 31% stands higher than just 15% of readings in its annual range. This means that options players are pricing in relatively low volatility expectations at the moment.

 
 

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