LEN Stock Rises Overnight As Berkshire Picks $212M Lot Amid Housing Weakness

• Berkshire Hathaway disclosed a stake of about $1.2 billion in Lennar.
• Berkshire made the purchases across several trading sessions in September.
• The investment comes as Lennar shares remain under pressure over the past year.

Berkshire Hathaway purchased $212.4 million worth of Lennar stake over three trading days through Monday, doubling down on its position in the U.S. homebuilder, according to an exchange filing.

The conglomerate bought 2.74 million shares, including both class A and class B stock. LEN shares, which have been on a downward trajectory over the past 12 months, rose 2.1% on Monday and gained another 1.2% in overnight trading.

Lennar Faces Tough Housing Market

The purchase comes as Lennar’s business faces pressure from elevated mortgage rates and weak housing affordability. The company reported third-quarter net earnings of $284 million, down from $591 million a year earlier, according to results issued last week. 

New orders fell 9% to 20,879 homes, while deliveries declined 3% to 20,840.

Lennar’s gross margin also fell to 15.8% from 17.5%, with the company using incentives and pricing adjustments to support demand. It lowered its full-year 2026 delivery outlook to 80,000-81,000 homes from 82,000-83,000 previously.

Berkshire Expands Housing Bet

The Lennar buying extends Berkshire’s growing exposure to U.S. housing. The conglomerate has also built positions in other homebuilders, including D.R. Horton, while completing its $6.8 billion acquisition of Taylor Morrison in July.

Berkshire has meanwhile made several notable portfolio moves this year, including increasing its Alphabet stake by about 48.1 million shares and adding to positions in Delta Air Lines and Macy’s. 

The latest Lennar purchases signal that Berkshire is increasing its position even as the housing market remains under pressure, giving investors an indication of where it sees value.

Retail View On LEN

On Stocktwits, the retail sentiment for LEN has been declining since its earnings report last Wednesday and was ‘extremely bearish’ as of the last check.

Lennar shares are down 22.8% year to date, and heading for a decline for a third straight week.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: BABA Stock Spikes Overnight: Alibaba Takes On Nvidia With China's Most Powerful AI Chip Yet