LGI Homes, Inc. (NASDAQ:LGIH) Given Consensus Rating of "Hold" by Brokerages

Key Points

• LGI Homes, Inc. has received a consensus rating of "Hold" from brokerages, with one analyst rating it a sell, two as hold, and two as buy, while the average target price is set at $75.00.
• In its latest quarterly earnings, LGI Homes reported $1.36 earnings per share, exceeding estimates, but saw a 19.8% decrease in revenue compared to the previous year.
• Institutional investors currently hold about 84.89% of LGI Homes stock, indicating strong investment interest in the company.

Shares of LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) have been given a consensus recommendation of "Hold" by the five analysts that are presently covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have issued a buy rating on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $75.00.

A number of research firms recently weighed in on LGIH. JMP Securities raised their price target on shares of LGI Homes from $75.00 to $85.00 and gave the company a "market outperform" rating in a research report on Wednesday, August 27th. Citigroup reissued a "market outperform" rating on shares of LGI Homes in a research report on Wednesday, August 27th. Wedbush reissued a "neutral" rating and set a $93.00 price target on shares of LGI Homes in a research report on Monday, July 7th. Finally, JPMorgan Chase & Co. dropped their price target on shares of LGI Homes from $52.00 to $47.00 and set an "underweight" rating on the stock in a research report on Wednesday, July 9th.

Institutional Trading of LGI Homes

A number of large investors have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC increased its holdings in LGI Homes by 10.6% during the fourth quarter. Tower Research Capital LLC TRC now owns 2,210 shares of the financial services provider's stock worth $198,000 after buying an additional 212 shares during the last quarter. Envestnet Portfolio Solutions Inc. increased its holdings in LGI Homes by 8.8% during the first 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 last quarter. Exencial Wealth Advisors LLC increased its holdings in LGI Homes by 8.0% during the first 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 last quarter. PNC Financial Services Group Inc. increased its holdings in LGI Homes by 4.8% during the second 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 last quarter. Finally, Russell Investments Group Ltd. increased its holdings in LGI Homes by 106.6% during the second 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 last quarter. Hedge funds and other institutional investors own 84.89% of the company's stock.

LGI Homes Stock Up 3.5%

Shares of LGI Homes stock traded up $2.13 during trading hours on Tuesday, reaching $62.63. The company's stock had a trading volume of 547,030 shares, compared to its average volume of 420,280. LGI Homes has a one year low of $47.17 and a one year high of $125.83. The company has a market capitalization of $1.44 billion, a P/E ratio of 9.45 and a beta of 1.75. The stock's fifty day simple moving average is $57.92 and its two-hundred day simple moving average is $59.98. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.64 and a current ratio of 18.18.

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

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.