Yahoo Finance·2026-02-05 18:12Group 1: Proposal Overview - The Trump administration is considering a ban on large institutional investors purchasing single-family homes to address the housing affordability crisis, with the proposal titled "Trump Homes" potentially involving around 1 million houses [1] - Shares of homebuilders Lennar and Taylor Morrison Home rose over 3% following reports of their involvement in the "Trump Homes" proposal, which aims to create a large-scale program for selling entry-level homes that could lead to a pathway-to-ownership program funded by private investors [2] Group 2: Company Performance - Lennar - Lennar is one of the top homebuilders in the U.S., focusing on single-family residences, townhouses, and condominiums for various buyer segments, with a market capitalization of $29.4 billion [4] - The company has faced challenges from high mortgage rates, slowing demand, and margin pressures, with LEN stock down 9% over the past 52 weeks and 4% over the last six months, reaching a 52-week high of $144.24 in September 2025 but down about 20% from that level [5] - Lennar's forward price-to-earnings (P/E) ratio is 17.4 times, which is lower than the industry average of approximately 18.2 times, indicating a modest valuation [6] Group 3: Financial Performance - In Q4 of fiscal 2025, Lennar's total revenue decreased by 5.8% year-over-year to $9.37 billion, surpassing Wall Street's estimate of $9.13 billion, primarily due to a 6.9% decline in homebuilding revenues [8] - The decline in revenue was influenced by a 10% decrease in the average sales price of homes delivered, despite an increase in the number of homes delivered, attributed to market weakness and sales incentives for homebuyers [8] - Adjusted EPS fell from $4.03 to $2.03, missing the estimated figure of $2.23 by analysts, indicating pressure on the company's margins [8]