LGI Homes (NASDAQ:LGIH) Stock Crosses Below 200-Day Moving Average – Should You Sell?

LGI Homes, Inc. (NASDAQ:LGIH)’s stock price crossed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $50.30 and traded as low as $40.65. LGI Homes shares last traded at $40.93, with a volume of 523,499 shares.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Citizens Jmp raised their price target on shares of LGI Homes from $85.00 to $95.00 and gave the stock a “market outperform” rating in a research note on Wednesday, January 7th. Weiss Ratings restated a “sell (d)” rating on shares of LGI Homes in a report on Monday, December 29th. Finally, Citigroup reaffirmed an “outperform” rating on shares of LGI Homes in a research report on Wednesday, January 7th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $74.63.

LGI Homes Stock Down 3.1%

The firm has a market cap of $857.20 million, a P/E ratio of 11.84 and a beta of 1.88. The company has a quick ratio of 0.76, a current ratio of 20.98 and a debt-to-equity ratio of 0.79. The firm has a fifty day moving average of $51.35 and a 200-day moving average of $50.13.

LGI Homes (NASDAQ:LGIH) last posted its quarterly earnings results on Tuesday, February 17th. The financial services provider reported $0.97 earnings per share for the quarter, beating analysts’ consensus estimates of $0.96 by $0.01. The firm had revenue of $473.97 million during 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 business’s revenue was down 15.0% compared to the same quarter last year. During the same period last year, the company earned $2.15 earnings per share. On average, equities research analysts anticipate that LGI Homes, Inc. will post 8.46 earnings per share for the current year.

Insider Activity at LGI Homes

In related news, COO Michael Larry Snider sold 7,887 shares of the business’s stock in a transaction on Monday, March 9th. The shares were sold at an average price of $42.04, for a total transaction of $331,569.48. Following the transaction, the chief operating officer directly owned 30,517 shares in the company, valued at approximately $1,282,934.68. The trade was a 20.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Charles Michael Merdian sold 7,211 shares of the company’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $42.04, for a total transaction of $303,150.44. Following the sale, the chief financial officer directly owned 20,540 shares in the company, valued at $863,501.60. This trade represents a 25.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 22,451 shares of company stock valued at $943,840. 12.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On LGI Homes

Several hedge funds have recently bought and sold shares of LGIH. Caitong International Asset Management Co. Ltd increased its position in LGI Homes by 75.5% during the third 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 during the last quarter. Versant Capital Management Inc lifted its position in shares of LGI Homes by 35.1% in the third quarter. Versant Capital Management Inc now owns 947 shares of the financial services provider’s stock valued at $49,000 after buying an additional 246 shares during the last quarter. PNC Financial Services Group Inc. boosted its stake in shares of LGI Homes by 4.8% during the 2nd quarter. PNC Financial Services Group Inc. now owns 5,976 shares of the financial services provider’s stock worth $308,000 after acquiring an additional 275 shares during the period. Illinois Municipal Retirement Fund increased its holdings in shares of LGI Homes by 2.6% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 10,970 shares of the financial services provider’s stock worth $567,000 after acquiring an additional 275 shares during the last quarter. Finally, Russell Investments Group Ltd. increased its holdings in shares of LGI Homes by 106.6% during the 2nd 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. 84.89% of the stock is currently 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.