UBS Group AG Cuts Stock Holdings in LGI Homes, Inc. $LGIH

Key Points

• UBS Group AG trimmed its LGI Homes stake by 25.6% in the fourth quarter, selling 23,923 shares and leaving it with 69,621 shares worth about $2.99 million.
• LGI Homes reported earnings of $0.24 per share for the latest quarter, beating analyst estimates, although revenue of $319.74 million came in below expectations and fell 9% year over year.
• Sentiment remains mixed: insiders sold shares in recent months, while analysts’ views are split, resulting in a consensus Hold rating with an average target price of $72.75.

UBS Group AG reduced its position in shares of LGI Homes, Inc. (NASDAQ:LGIH - Free Report) by 25.6% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 69,621 shares of the financial services provider's stock after selling 23,923 shares during the period. UBS Group AG owned approximately 0.30% of LGI Homes worth $2,991,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the company. Wasatch Advisors LP increased its holdings in LGI Homes by 3.4% in the second quarter. Wasatch Advisors LP now owns 1,467,855 shares of the financial services provider's stock valued at $75,624,000 after buying an additional 48,795 shares in the last quarter. Voss Capital LP increased its holdings in LGI Homes by 33.3% in the third quarter. Voss Capital LP now owns 300,000 shares of the financial services provider's stock valued at $15,513,000 after buying an additional 75,000 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in LGI Homes by 5.3% in the first quarter. Goldman Sachs Group Inc. now owns 250,142 shares of the financial services provider's stock valued at $16,627,000 after buying an additional 12,524 shares in the last quarter. Voloridge Investment Management LLC increased its holdings in LGI Homes by 118.5% in the third quarter. Voloridge Investment Management LLC now owns 155,012 shares of the financial services provider's stock valued at $8,016,000 after buying an additional 84,079 shares in the last quarter. Finally, Raymond James Financial Inc. increased its holdings in LGI Homes by 1.9% in the second quarter. Raymond James Financial Inc. now owns 138,506 shares of the financial services provider's stock valued at $7,136,000 after buying an additional 2,574 shares in the last quarter. 84.89% of the stock is owned by hedge funds and other institutional investors.

LGI Homes Stock Performance

Shares of LGIH opened at $46.11 on Tuesday. The company has a debt-to-equity ratio of 0.81, a current ratio of 18.56 and a quick ratio of 0.70. The firm has a 50 day simple moving average of $42.09 and a 200-day simple moving average of $47.05. LGI Homes, Inc. has a 1-year low of $33.55 and a 1-year high of $69.50. The stock has a market cap of $1.07 billion, a price-to-earnings ratio of 15.12 and a beta of 1.90.

LGI Homes (NASDAQ:LGIH - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The financial services provider reported $0.24 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.22. LGI Homes had a net margin of 4.22% and a return on equity of 3.80%. The business had revenue of $319.74 million during the quarter, compared to analysts' expectations of $328.22 million. During the same period last year, the company posted $0.17 EPS. The company's revenue was down 9.0% on a year-over-year basis. Equities analysts forecast that LGI Homes, Inc. will post 2.76 EPS for the current fiscal year.

Insider Transactions at LGI Homes

In other news, CFO Charles Michael Merdian sold 7,211 shares of the firm'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 completion of the transaction, the chief financial officer directly owned 20,540 shares of the company's stock, valued at $863,501.60. This trade represents a 25.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Scott James Garber sold 1,353 shares of the firm's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $42.04, for a total transaction of $56,880.12. Following the transaction, the general counsel directly owned 21,716 shares of the company's stock, valued at approximately $912,940.64. This trade represents a 5.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 22,451 shares of company stock valued at $943,840 in the last ninety days. Corporate insiders own 12.60% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on LGIH. Zacks Research raised shares of LGI Homes from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 21st. Wall Street Zen cut shares of LGI Homes from a "hold" rating to a "sell" rating in a report on Saturday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of LGI Homes in a report on Friday. Finally, JPMorgan Chase & Co. increased their target price on shares of LGI Homes from $38.00 to $41.00 and gave the company an "underweight" rating in a report on Thursday, April 30th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $72.75.

LGI Homes 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.

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