Lennar Replenishes Stock Repurchase Authorization, Up to $1.0 Billion

Rhea-AI Summary

Lennar Corporation (NYSE: LEN, LEN.B) has announced an increase in its stock repurchase program by up to $1 billion in purchase price or 25 million shares of its Class A and Class B common stock. This authorization has no expiration date, reflecting the company's commitment to enhancing shareholder value. The repurchase program indicates confidence in the company's prospects, providing an opportunity for shareholders to benefit from enhanced earnings per share (EPS) through reduced share count.

Positive

• Authorization to repurchase shares up to $1 billion indicates confidence in future performance.
• Potential for enhanced earnings per share (EPS) due to reduced share count.

Negative

• No guarantee that shares will be repurchased, introducing uncertainty.

MIAMI, Oct. 15, 2021 /PRNewswire/ -- Lennar Corporation (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, announced that its Board of Directors increased the authorization for the Company to repurchase its own shares from time to time by up to the lesser of $1 billion in purchase price, or 25 million in shares, of the Company's outstanding Class A or Class B common stock. The repurchase authorization has no expiration date.

About Lennar
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LEN^X drives Lennar's technology, innovation and strategic investments. For more information about Lennar, please visit www.lennar.com.

Forward-Looking Statements
Some of the statements in this press release are "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the stock repurchase authorization. These forward-looking statements are subject to risks, uncertainties and assumptions, including the risk that no shares are repurchased. Accordingly, these forward-looking statements should be evaluated with consideration given to the many risks and uncertainties that could cause actual results and events to differ materially from those in the forward-looking statements. They include the risks detailed in Lennar's filings with the SEC, including the "Risk Factors" section of Lennar's Annual Report on Form 10-K for the fiscal year ended November 30, 2020. It is not possible for management to predict all the possible risks that could affect Lennar or to assess the impact of all possible risks on Lennar's business.

 

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SOURCE Lennar Corporation

FAQ

What is the purpose of Lennar's $1 billion share repurchase authorization?

The purpose is to enhance shareholder value and signal management's confidence in the company's future.

How many shares can Lennar repurchase under the new authorization?

Lennar can repurchase up to 25 million shares of its outstanding Class A or Class B common stock.

Is there an expiration date for Lennar's share repurchase program?

No, the repurchase authorization has no expiration date.

What impact could the share buyback have on Lennar's stock price?

The buyback could potentially increase the stock price by reducing the total number of shares outstanding, thereby elevating earnings per share (EPS).