JPMorgan Chase & Co. Forecasts Strong Price Appreciation for LGI Homes (NASDAQ:LGIH) Stock

Key Points

• JPMorgan Chase & Co. has raised its price target for LGI Homes from $47.00 to $48.50, indicating a potential upside of 9.78% from the current stock price.
• Analysts have mixed ratings on LGI Homes, with an average target price of $72.13, including a "market outperform" rating from JMP Securities and a "sell" rating from Weiss Ratings.
• Despite a year-over-year revenue decline of 19.8%, LGI Homes reported $1.36 EPS for the last quarter, surpassing the consensus estimate of $1.21 EPS.

LGI Homes (NASDAQ:LGIH - Get Free Report) had its price target boosted by investment analysts at JPMorgan Chase & Co. from $47.00 to $48.50 in a report released on Tuesday,Benzinga reports. The firm currently has an "underweight" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 9.78% from the company's current price.

LGIH has been the topic of a number of other research reports. Capital One Financial set a $60.00 price objective on LGI Homes in a report on Thursday, October 9th. Wedbush reissued a "neutral" rating and set a $95.00 price objective on shares of LGI Homes in a report on Monday, October 6th. JMP Securities increased their price objective on LGI Homes from $75.00 to $85.00 and gave the company a "market outperform" rating in a report on Wednesday, August 27th. Citigroup reissued a "market outperform" rating on shares of LGI Homes in a report on Wednesday, August 27th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of LGI Homes in a report on Wednesday, October 8th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, LGI Homes has an average rating of "Hold" and an average target price of $72.13.

LGI Homes Stock Up 2.2%

LGIH stock traded up $0.95 during mid-day trading on Tuesday, hitting $44.18. The stock had a trading volume of 46,717 shares, compared to its average volume of 343,293. 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 1-year low of $42.69 and a 1-year high of $118.31. The company has a fifty day moving average of $58.34 and a 200 day moving average of $56.06. The stock has a market capitalization of $1.02 billion, a price-to-earnings ratio of 6.70 and a beta of 1.77.

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

Hedge Funds Weigh In On LGI Homes

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Envestnet Portfolio Solutions Inc. lifted its position in shares of LGI Homes by 8.8% during the 1st quarter. Envestnet Portfolio Solutions Inc. now owns 3,023 shares of the financial services provider's stock worth $201,000 after buying an additional 245 shares during the period. Exencial Wealth Advisors LLC lifted its position in shares of LGI Homes by 8.0% during the 1st quarter. Exencial Wealth Advisors LLC now owns 3,621 shares of the financial services provider's stock worth $241,000 after buying an additional 269 shares during the period. PNC Financial Services Group Inc. lifted its position 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 buying an additional 275 shares during the period. Russell Investments Group Ltd. lifted its position 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 buying an additional 305 shares during the period. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position in shares of LGI Homes by 6.8% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 5,288 shares of the financial services provider's stock worth $272,000 after buying an additional 336 shares during the period. Institutional investors own 84.89% of the company's stock.

About LGI Homes

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.

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