LGI Homes (NASDAQ:LGIH) Trading Down 7.9% – Here’s Why

LGI Homes, Inc. (NASDAQ:LGIH) fell 7.9% during mid-day trading on Tuesday . The stock traded as low as $55.80 and last traded at $56.0110. 200,895 shares were traded during trading, a decline of 48% from the average session volume of 386,737 shares. The stock had previously closed at $60.83.

Analysts Set New Price Targets

A number of research analysts recently weighed in on LGIH shares. Weiss Ratings reiterated a “sell (d)” rating on shares of LGI Homes in a report on Monday, December 29th. Citizens Jmp raised their price objective on LGI Homes from $85.00 to $95.00 and gave the stock a “market outperform” rating in a report on Wednesday, January 7th. Finally, Citigroup reiterated an “outperform” rating on shares of LGI Homes in a report on Wednesday, January 7th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, LGI Homes has an average rating of “Hold” and an average target price of $74.63.

LGI Homes Stock Performance

The stock has a 50 day simple moving average of $50.66 and a 200 day simple moving average of $52.35. The company has a quick ratio of 0.58, a current ratio of 20.98 and a debt-to-equity ratio of 0.79. The company has a market cap of $1.23 billion, a price-to-earnings ratio of 17.07 and a beta of 1.90.

LGI Homes (NASDAQ:LGIH) last announced its earnings results on Tuesday, February 17th. The financial services provider reported $0.97 EPS for the quarter, beating the consensus estimate of $0.96 by $0.01. The business had revenue of $473.97 million for the quarter, compared to the consensus estimate of $479.60 million. LGI Homes had a return on equity of 4.08% and a net margin of 4.25%.The company’s revenue was down 15.0% on a year-over-year basis. During the same period last year, the business posted $2.15 EPS. As a group, analysts predict that LGI Homes, Inc. will post 8.46 EPS for the current year.

Institutional Investors Weigh In On LGI Homes

A number of large investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd lifted its holdings in LGI Homes by 75.5% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider’s stock worth $28,000 after buying an additional 237 shares in the last quarter. Russell Investments Group Ltd. increased its position in shares of LGI Homes by 106.6% during the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider’s stock worth $30,000 after acquiring an additional 305 shares during the last quarter. Los Angeles Capital Management LLC acquired a new position in shares of LGI Homes in the fourth quarter worth about $29,000. Kemnay Advisory Services Inc. purchased a new position in LGI Homes in the fourth quarter valued at about $32,000. Finally, MassMutual Private Wealth & Trust FSB boosted its holdings in LGI Homes by 74.8% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 928 shares of the financial services provider’s stock valued at $48,000 after purchasing an additional 397 shares during the last quarter. 84.89% of the stock is owned by institutional investors and hedge funds.

LGI Homes Company Profile

LGI Homes, Inc (NASDAQ: LGIH) is a residential homebuilder primarily focused on serving first-time and first-time move-up homebuyers in the United States. The company specializes in the acquisition, development and sale of affordable single-family homes and townhomes. LGI Homes operates through an integrated model that encompasses land sourcing, lot development, home construction, and post-closing customer support including warranty services.

In addition to its core homebuilding activities, LGI Homes offers ancillary services to streamline the homebuying process for its customers.