JMP Securities Has Lowered Expectations for LGI Homes (NASDAQ:LGIH) Stock Price

Key Points

• JMP Securities has reduced its target price for LGI Homes from $140 to $75, indicating a potential upside of 25.81% from the current share price.
• Despite a recent drop in revenue and mixed ratings from various analysts, LGI Homes has reported $1.36 EPS for the quarter, surpassing the consensus estimate of $1.21.
• Institutional investors hold 84.89% of LGI Homes' stock, with recent increases in stakes from several investment firms.

LGI Homes (NASDAQ:LGIH - Get Free Report) had its price target lowered by equities researchers at JMP Securities from $140.00 to $75.00 in a research report issued to clients and investors on Thursday, Marketbeat Ratings reports. The brokerage currently has a "market outperform" rating on the financial services provider's stock. JMP Securities' price target would indicate a potential upside of 31.33% from the company's current price.

LGIH has been the topic of several other reports. Wedbush reissued a "neutral" rating and issued a $93.00 price target on shares of LGI Homes in a research note on Monday, July 7th. Citigroup reiterated an "outperform" rating on shares of LGI Homes in a report on Thursday. Finally, JPMorgan Chase & Co. dropped their target price on shares of LGI Homes from $52.00 to $47.00 and set an "underweight" rating for the company in a report on Wednesday, July 9th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $71.67.

LGI Homes Trading Down 0.2%

Shares of LGIH stock opened at $57.11 on Thursday. The company has a current ratio of 18.18, a quick ratio of 0.64 and a debt-to-equity ratio of 0.85. LGI Homes has a 12-month low of $47.17 and a 12-month high of $125.83. The stock has a market capitalization of $1.32 billion, a P/E ratio of 8.61 and a beta of 1.69. The firm's 50 day moving average is $53.06 and its 200 day moving average is $62.62.

LGI Homes (NASDAQ:LGIH - Get Free Report) last posted its earnings results on Tuesday, August 5th. The financial services provider reported $1.36 earnings per share for the quarter, topping analysts' consensus estimates of $1.21 by $0.15. The firm had revenue of $483.49 million for the quarter, compared to the consensus estimate of $546.96 million. LGI Homes had a net margin of 7.63% and a return on equity of 8.00%. The business's quarterly revenue was down 19.8% on a year-over-year basis. During the same period in the previous year, the firm posted $2.48 EPS. Research analysts expect that LGI Homes will post 8.46 earnings per share for the current year.

Institutional Trading of LGI Homes

Institutional investors have recently added to or reduced their stakes in the business. Wealth Enhancement Advisory Services LLC lifted its stake in shares of LGI Homes by 213.5% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 10,234 shares of the financial services provider's stock valued at $680,000 after purchasing an additional 6,970 shares during the last quarter. GAMMA Investing LLC increased its position in shares of LGI Homes by 219.1% during the 1st quarter. GAMMA Investing LLC now owns 887 shares of the financial services provider's stock worth $59,000 after purchasing an additional 609 shares in the last quarter. Northern Trust Corp lifted its holdings in LGI Homes by 11.5% in the fourth quarter. Northern Trust Corp now owns 219,547 shares of the financial services provider's stock valued at $19,628,000 after buying an additional 22,615 shares during the period. Janney Montgomery Scott LLC grew its holdings in LGI Homes by 22.4% during the first quarter. Janney Montgomery Scott LLC now owns 3,406 shares of the financial services provider's stock valued at $226,000 after purchasing an additional 623 shares during the period. Finally, Tributary Capital Management LLC boosted its holdings in shares of LGI Homes by 15.0% in the first quarter. Tributary Capital Management LLC now owns 215,556 shares of the financial services provider's stock valued at $14,328,000 after buying an additional 28,095 shares during the period. Institutional investors own 84.89% of the company's stock.

LGI Homes Company Profile

LGI Homes, Inc designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to large institutions looking to acquire single-family rental properties.