Ricky Sandler‘s Eminence Capital is optimistic about the prospects of Lennar Corporation (NYSE:LEN). As reported in a recently amended filing with the Securities and Exchange Commission, the fund has increased its holding of the stock to 10.2 million shares, up from 3.6 million shares reported in its 13F filing for the September quarter. Eminence Capital’s current stake amounts to 5.2% of the company’s outstanding stock.
Lennar Corporation (NYSE:LEN) is a homebuilder that operates in 19 states. The company has a market cap of $9.3 billion and pays an annual dividend of $0.16 per share, providing shareholders with a 0.36% yield. The stock ended 2016 12% lower, but is up by 3.5% already this year, having ended Friday’s trading session at $44.46 per share. Lennar stock is currently trading at a trailing Price to Earnings (P/E) ratio of 12, slightly lower than the industry average of 13.4 according to Yahoo! Finance’s data. Barclay’s recently initiated coverage of Lennar, having assigned an ‘Overweight’ rating and a price target of $50 per share to it, which implies upside potential of 12.5%.
During the third quarter of 2016, Lennar Corporation (NYSE:LEN) registered a boost in popularity among the hedge funds followed by Insider Monkey. According to our data, the stock could be found in the portfolios of 48 of those hedge funds at the end of September, up from 40 long positions recorded at the end of June. Combined, those funds amassed a little over 12% of Lennar’s common stock. At the top of the heap was Edgar Wachenheim‘s Greenhaven Associates, which held 5.06 million shares, up by 6% over the quarter. Not far behind was Long Pond Capital, run by John Khoury, which held 2.75 million shares, a boost of 32% from the end of the second quarter.
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You can access the original SEC filing by clicking here.
Ownership Summary Table
| Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
|---|---|---|---|---|---|---|
| Eminence Capital | 0 | 10,180,202 | 0 | 10,180,202 | 10,180,202 | 5.2% |
| Eminence GP | 0 | 8,212,235 | 0 | 8,212,235 | 8,212,235 | 4.2% |
| Ricky C. Sandler | 0 | 10,180,202 | 0 | 10,180,202 | 10,180,202 | 5.2% |
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Page 1 of 10 – SEC Filing
| SECURITIES AND EXCHANGE COMMISSION | |
| Washington, D.C. 20549 | |
| SCHEDULE 13G | |
| Under the Securities Exchange Act of 1934 | |
| Lennar Corporation | |
| (Name of Issuer) | |
| Class | |
| (Title of Class of Securities) | |
| 526057104 | |
| (CUSIP Number) | |
| January | |
| (Date of Event Which Requires Filing of This Statement) | |
| Check the appropriate box to designate the rule pursuant to which this Schedule is filed: | |
| ¨ | Rule 13d-1(b) |
| Q | Rule 13d-1(c) |
| ¨ | Rule 13d-1(d) |
| (Page 1 of 10 Pages) | |
______________________________
*The remainder of this cover page shall
be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any
subsequent amendment containing information which would alter the disclosures provided in a prior cover page.
The information required in the remainder
of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of
1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions
of the Act (however, see the Notes).
Page 2 of 10 – SEC Filing
| 1 | NAME OF REPORTING PERSON Eminence Capital, LP | |||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) ¨ (b) S | ||
| 3 | SEC USE ONLY | |||
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION Delaware | |||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: | 5 | SOLE VOTING POWER 0 | ||
| 6 | SHARED VOTING POWER 10,180,202 | |||
| 7 | SOLE DISPOSITIVE POWER 0 | |||
| 8 | SHARED DISPOSITIVE POWER 10,180,202 | |||
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 10,180,202 | |||
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES | ¨ | ||
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 5.2% | |||
| 12 | TYPE OF REPORTING PERSON IA | |||
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Page 3 of 10 – SEC Filing
| 1 | NAME OF REPORTING PERSON Eminence GP, LLC | |||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) ¨ (b) S | ||
| 3 | SEC USE ONLY | |||
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION Delaware | |||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: | 5 | SOLE VOTING POWER 0 | ||
| 6 | SHARED VOTING POWER 8,212,235 | |||
| 7 | SOLE DISPOSITIVE POWER 0 | |||
| 8 | SHARED DISPOSITIVE POWER 8,212,235 | |||
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 8,212,235 | |||
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES | ¨ | ||
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 4.2% | |||
| 12 | TYPE OF REPORTING PERSON OO | |||
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Page 4 of 10 – SEC Filing
| 1 | NAME OF REPORTING PERSON Ricky C. Sandler | |||
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP | (a) ¨ (b) S | ||
| 3 | SEC USE ONLY | |||
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION United States | |||
| NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH: | 5 | SOLE VOTING POWER 0 | ||
| 6 | SHARED VOTING POWER 10,180,202 | |||
| 7 | SOLE DISPOSITIVE POWER 0 | |||
| 8 | SHARED DISPOSITIVE POWER 10,180,202 | |||
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 10,180,202 | |||
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES | ¨ | ||
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 5.2% | |||
| 12 | TYPE OF REPORTING PERSON IN | |||
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Page 5 of 10 – SEC Filing
| Item 1(a). | Name of Issuer |
| The name of the issuer is Lennar Corporation (the “Company”). |
| Item 1(b). | Address of Issuer’s Principal Executive Offices |
| The Company’s principal executive offices are located at 700 Northwest 107th Avenue, Miami, Florida 33172. |
| Item 2. | Name of Person Filing: |
| This statement is filed on behalf of each of the following persons (collectively, the “Reporting Persons”): | |
| (i) Eminence Capital, LP, a Delaware limited partnership (“Eminence Capital”); | |
| (ii) Eminence GP, LLC, a Delaware limited liability company (“Eminence GP”); and | |
| (iii) Ricky C. Sandler, a U.S. Citizen (“Mr. Sandler”). | |
| This statement relates to shares of Class A Common Stock (as defined in Item 2(d) below) held for the accounts of: | |
| (i) Eminence Partners, L.P., a New York limited partnership (“Eminence I”); Eminence Partners II, L.P., a New York limited partnership (“Eminence II”); Eminence Partners Leveraged, L.P., a Delaware limited partnership (“Eminence Leveraged”); Eminence Eaglewood Master, L.P., a Delaware limited partnership (“Eminence Eaglewood”); Eminence Partners Long, L.P., a Delaware limited partnership (together with Eminence I, Eminence II, Eminence Leveraged and Eminence Eaglewood, the “Partnerships”); as well as Eminence Fund Master, Ltd. (“Eminence Offshore Master Fund”), a Cayman Islands company, and Eminence Fund Long, Ltd. (“Eminence Offshore Long”), a Cayman Islands company. The Partnerships, Eminence Offshore Master Fund and Eminence Offshore Long are collectively referred to as the “Eminence Funds”; and | |
| (ii) A separately managed account (the “SMA”). | |
| Eminence Capital serves as the management company to the Eminence Funds with respect to the shares of Class A Common Stock directly owned by the Eminence Funds and the investment adviser to the SMA with respect to the shares of Class A Common Stock directly owned by the SMA. Eminence Capital may be deemed to have voting and dispositive power over the shares held for the accounts of the Eminence Funds and the SMA. | |
| Eminence GP serves as general partner or manager with respect to the shares of Class A Common Stock directly owned by the Partnerships and Eminence Offshore Master Fund and may be deemed to have voting and dispositive power over the shares held for the accounts of the Partnerships and Eminence Offshore Master Fund. |
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Page 6 of 10 – SEC Filing
| Mr. Sandler is the Chief Executive Officer of Eminence Capital and the Managing Member of Eminence GP and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock directly owned by the Eminence Funds and the SMA, as applicable. | |
| The filing of this statement should not be construed as an admission that any of the Reporting Persons is, for the purposes of Section 13G of the Act, the beneficial owner of the shares of Class A Common Stock reported herein. |
| Item 2(b). | Address of Principal Business Office or, if None, Residence: |
| The address of the principal business and principal office of Eminence GP and Eminence Capital is 65 East 55th Street, 25th Floor, New York, NY 10022. The business address of Mr. Sandler is 65 East 55th Street, 25th Floor, New York, NY 10022. |
| Item 2(c). | Citizenship |
| (i) Eminence Capital, a Delaware limited partnership; | |
| (ii) Eminence GP, a Delaware limited liability company; and | |
| (iii) Mr. Sandler is a United States citizen. |
| Item 2(d). | Title of Class of Securities |
| Class A Common Stock, $0.10 par value (the “Class A Common Stock”). |
| Item 2(e). | CUSIP Number |
| 526057104 |
| Item 3. | If this statement is filed pursuant to Rules 13d-1(b) or 13d-2(b) or (c), check whether the person filing is a: |
| (a) | ¨ | Broker or dealer registered under Section 15 of the Act; | |
| (b) | ¨ | Bank as defined in Section 3(a)(6) of the Act; | |
| (c) | ¨ | Insurance company as defined in Section 3(a)(19) of the Act; | |
| (d) | ¨ | Investment company registered under Section 8 of the Investment Company Act of 1940; | |
| (e) | ¨ | An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E); | |
| (f) | ¨ | An employee benefit plan or endowment fund in accordance with Rule 13d-1(b)(1)(ii)(F); |
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Page 7 of 10 – SEC Filing
| (g) | ¨ | A parent holding company or control person in accordance with Rule 13d-1(b)(1)(ii)(G); | |
| (h) | ¨ | A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act; | |
| (i) | ¨ | A church plan that is excluded from the definition of an investment company under Section 3(c)(14) of the Investment Company Act; | |
| (j) | ¨ | A non-U.S. institution in accordance with Rule 13d-1(b)(1)(ii)(J); | |
| (k) | ¨ | Group, in accordance with Rule 13d-1(b)(1)(ii)(K). |
| If filing as a non-U.S. institution in accordance with Rule 13d-1(b)(1)(ii)(J), | ||||
| please specify the type of institution: | ||||
| Item 4. | Ownership | |
| A. Eminence Capital, LP | ||
| (a) | Amount beneficially owned: 10,180,202 | |
| (b) | Percent of class: 5.2%. The percentages used herein and in the rest of Item 4 are calculated based upon the 196,500,243 shares of Class A Common Stock outstanding as of August 31, 2016, as set forth in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended August 31, 2016 filed with the Securities and Exchange Commission on October 4, 2016. | |
| (c) | (i) Sole power to vote or direct the vote: 0 | |
| (ii) Shared power to vote or direct the vote: 10,180,202 | ||
| (iii) Sole power to dispose or direct the disposition: 0 | ||
| (iv) Shared power to dispose or direct the disposition: 10,180,202 | ||
| B. Eminence GP, LLC | ||
| (a) | Amount beneficially owned: 8,212,235 | |
| (b) | Percent of class: 4.2% | |
| (c) | (i) Sole power to vote or direct the vote: 0 | |
| (ii) Shared power to vote or direct the vote: 8,212,235 | ||
| (iii) Sole power to dispose or direct the disposition: 0 | ||
| (iv) Shared power to dispose or direct the disposition: 8,212,235 | ||
| C. Ricky C. Sandler | ||
| (a) | Amount beneficially owned: 10,180,202 | |
| (b) | Percent of class: 5.2% | |
| (c) | (i) Sole power to vote or direct the vote: 0 | |
| (ii) Shared power to vote or direct the vote: 10,180,202 | ||
| (iii) Sole power to dispose or direct the disposition: 0 | ||
| (iv) Shared power to dispose or direct the disposition: 10,180,202 | ||
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Page 8 of 10 – SEC Filing
| Item 5. | Ownership of Five Percent or Less of a Class |
| Not Applicable. |
| Item 6. | Ownership of More than Five Percent on Behalf of Another Person |
| Not Applicable. |
| Item 7. | Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company. |
| Not Applicable. |
| Item 8. | Identification and Classification of Members of the Group. |
| Not Applicable. |
| Item 9. | Notice of Dissolution of Group. |
| Not Applicable. |
| Item 10. | Certification |
| Each of the Reporting Persons hereby makes the following certification: | |
| By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect. |
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Page 9 of 10 – SEC Filing
SIGNATURES
After reasonable
inquiry and to the best of his or its knowledge and belief, each of the undersigned certifies that the information set forth in
this statement is true, complete and correct.
DATE: January 13, 2017
| /s/ Ricky C. Sandler | |
| Ricky C. Sandler, individually; as | |
| Managing Member of Eminence Capital GP, LLC, the General Partner of Eminence Capital, LP; | |
| and as Managing Member of Eminence GP, LLC |
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Page 10 of 10 – SEC Filing
EXHIBIT 1
JOINT FILING AGREEMENT
PURSUANT TO RULE 13d-1(k)
The undersigned
acknowledge and agree that the foregoing statement on Schedule 13G is filed on behalf of each of the undersigned and that all subsequent
amendments to this statement on Schedule 13G shall be filed on behalf of each of the undersigned without the necessity of filing
additional joint filing agreements. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments,
and for the completeness and accuracy of the information concerning him or it contained herein and therein, but shall not be responsible
for the completeness and accuracy of the information concerning the others, except to the extent that he or it knows or has reason
to believe that such information is inaccurate.
DATE: January 13, 2017
| /s/ Ricky C. Sandler | |
| Ricky C. Sandler, individually; as | |
| Managing Member of Eminence Capital GP, LLC, the General Partner of Eminence Capital, LP; | |
| and as Managing Member of Eminence GP, LLC |
