This Data May Make Lennar Corporation (LEN) ‘The’ Homebuilder To Buy

Lennar Corporation (NYSE:LEN) are searching for data that proves this is the homebuilder to buy. This may be it.

In the 21st century investor’s toolkit, there are dozens of metrics shareholders can use to track publicly traded companies. Two of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top money managers can outpace the S&P 500 by a significant margin (see just how much).

Equally as key, optimistic insider trading activity is a second way to look at the world of equities. As the old adage goes: there are many motivations for a bullish insider to sell shares of his or her company, but only one, very simple reason why they would buy. Plenty of academic studies have demonstrated the useful potential of this method if investors understand what to do (learn more here).

Now that that’s out of the way, it’s important to discuss the latest info for Lennar Corporation (NYSE:LEN).

What does the smart money think about Lennar Corporation (NYSE:LEN)?

At the end of the second quarter, a total of 54 of the hedge funds we track were bullish in this stock, a change of 13% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings significantly.

When using filings from the hedgies we track, Ken Heebner’s Capital Growth Management had the biggest position in Lennar Corporation (NYSE:LEN), worth close to $236.2 million, accounting for 6.3% of its total 13F portfolio. Sitting at the No. 2 spot is Cobalt Capital Management, managed by Wayne Cooperman, which held a $73 million position; 7% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Sean Cullinan’s Point State Capital, Steven Cohen’s SAC Capital Advisors and Jason Capello’s Merchants’ Gate Capital.

Consequently, specific money managers have been driving this bullishness. Capital Growth Management, managed by Ken Heebner, created the most valuable position in Lennar Corporation (NYSE:LEN). Capital Growth Management had 236.2 million invested in the company at the end of the quarter. Wayne Cooperman’s Cobalt Capital Management also made a $73 million investment in the stock during the quarter. The other funds with brand new LEN positions are Sean Cullinan’s Point State Capital, Steven Cohen’s SAC Capital Advisors, and Jason Capello’s Merchants’ Gate Capital.

How are insiders trading Lennar Corporation (NYSE:LEN)?

Insider buying made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the last half-year time frame, Lennar Corporation (NYSE:LEN) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Lennar Corporation (NYSE:LEN). These stocks are The Ryland Group, Inc. (NYSE:RYL), NVR, Inc. (NYSE:NVR), Toll Brothers Inc (NYSE:TOL), D.R. Horton, Inc. (NYSE:DHI), and PulteGroup, Inc. (NYSE:PHM). This group of stocks are the members of the residential construction industry and their market caps are similar to LEN’s market cap.