LGI Homes (NASDAQ:LGIH) Reaches New 12-Month Low – Here’s What Happened

LGI Homes, Inc. (NASDAQ:LGIH) shares hit a new 52-week low on Wednesday . The company traded as low as $39.54 and last traded at $39.1140, with a volume of 55416 shares. The stock had previously closed at $40.93.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on LGIH. Citizens Jmp boosted 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. Citigroup restated an “outperform” rating on shares of LGI Homes in a report on Wednesday, January 7th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of LGI Homes in a research report on Monday, December 29th. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, LGI Homes presently has an average rating of “Hold” and a consensus target price of $74.63.

LGI Homes Stock Down 3.1%

The stock has a market capitalization of $857.20 million, a price-to-earnings 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 50-day moving average of $51.35 and a two-hundred day moving average of $50.13.

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

Insider Buying and Selling

In related news, CFO Charles Michael Merdian sold 7,211 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $42.04, for a total transaction of $303,150.44. Following the transaction, the chief financial officer directly owned 20,540 shares of the company’s stock, valued at approximately $863,501.60. The trade was a 25.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Michael Larry Snider sold 6,000 shares of the company’s stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $42.04, for a total transaction of $252,240.00. Following the completion of the transaction, the chief operating officer owned 175,556 shares in the company, valued at approximately $7,380,374.24. This represents a 3.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 22,451 shares of company stock worth $943,840. 12.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On LGI Homes

A number of hedge funds have recently modified their holdings of LGIH. Caitong International Asset Management Co. Ltd raised its holdings in shares of 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 acquiring an additional 237 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in LGI Homes in the fourth quarter valued at about $29,000. Russell Investments Group Ltd. grew its stake in LGI Homes by 106.6% in the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider’s stock valued at $30,000 after purchasing an additional 305 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new position in LGI Homes in the 4th quarter worth about $32,000. Finally, Rockefeller Capital Management L.P. increased its position in LGI Homes by 1,759.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 874 shares of the financial services provider’s stock worth $38,000 after purchasing an additional 827 shares during the last quarter. 84.89% of the stock is owned by institutional investors and hedge funds.

About LGI Homes

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.