LGI Homes, Inc. (NASDAQ:LGIH) Receives Average Recommendation of "Hold" from Analysts

Key Points

• LGI Homes has a consensus analyst rating of “Hold” from six brokerages, with an even split between sell, hold, and buy ratings. The average 12-month price target is $72.75.
• Recent analyst actions were mixed, including downgrades from Wall Street Zen and Weiss Ratings, while Zacks Research upgraded the stock to hold and JPMorgan raised its target price to $41 but kept an underweight rating.
• LGI Homes reported better-than-expected earnings of $0.24 per share for the latest quarter, though revenue missed estimates and fell 9% year over year. The stock was trading down about 5% and insiders had recently sold shares.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) has earned a consensus rating of "Hold" from the six brokerages that are currently covering the firm, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and two have issued a buy rating on the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $72.75.

Several brokerages recently commented on LGIH. Wall Street Zen downgraded shares of LGI Homes from a "hold" rating to a "sell" rating in a report on Saturday, May 23rd. Weiss Ratings reaffirmed a "sell (d)" rating on shares of LGI Homes in a report on Friday, May 22nd. Zacks Research raised shares of LGI Homes from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 21st. Finally, JPMorgan Chase & Co. lifted their target price on shares of LGI Homes from $38.00 to $41.00 and gave the stock an "underweight" rating in a report on Thursday, April 30th.

Insider Buying and Selling at LGI Homes

In other LGI Homes news, CFO Charles Michael Merdian sold 7,211 shares of the business's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $42.04, for a total value of $303,150.44. Following the completion of the sale, the chief financial officer owned 20,540 shares of the company's stock, valued at $863,501.60. The trade was a 25.98% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, General Counsel Scott James Garber sold 1,353 shares of the company'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 sale, 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 position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 22,451 shares of company stock valued at $943,840 in the last quarter. Company insiders own 12.60% of the company's stock.

Institutional Trading of LGI Homes

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Voss Capital LP boosted its stake in shares of LGI Homes by 33.3% in the 3rd quarter. Voss Capital LP now owns 300,000 shares of the financial services provider's stock valued at $15,513,000 after purchasing an additional 75,000 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in shares of LGI Homes by 244.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 61,384 shares of the financial services provider's stock valued at $3,174,000 after purchasing an additional 43,572 shares during the last quarter. SG Americas Securities LLC boosted its stake in shares of LGI Homes by 1,158.0% in the 4th quarter. SG Americas Securities LLC now owns 91,471 shares of the financial services provider's stock valued at $3,930,000 after purchasing an additional 84,200 shares during the last quarter. Commons Capital LLC bought a new stake in shares of LGI Homes in the 3rd quarter valued at $593,000. Finally, Royce & Associates LP boosted its stake in shares of LGI Homes by 53.2% in the 4th quarter. Royce & Associates LP now owns 87,729 shares of the financial services provider's stock valued at $3,769,000 after purchasing an additional 30,461 shares during the last quarter. Institutional investors own 84.89% of the company's stock.

LGI Homes Stock Down 5.0%

LGI Homes stock opened at $47.31 on Thursday. The firm has a market capitalization of $1.10 billion, a PE ratio of 15.51 and a beta of 1.87. The company's 50-day moving average is $43.47 and its 200-day moving average is $47.10. LGI Homes has a fifty-two week low of $33.55 and a fifty-two week high of $69.50. The company has a debt-to-equity ratio of 0.81, a current ratio of 18.56 and a quick ratio of 0.70.

LGI Homes (NASDAQ:LGIH - Get Free Report) last announced its earnings results on Tuesday, April 28th. The financial services provider reported $0.24 EPS for the quarter, topping the consensus estimate of $0.02 by $0.22. The business had revenue of $319.74 million during the quarter, compared to the consensus estimate of $328.22 million. LGI Homes had a net margin of 4.22% and a return on equity of 3.80%. LGI Homes's revenue was down 9.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.17 EPS. Sell-side analysts anticipate that LGI Homes will post 2.76 earnings per share for the current year.

LGI Homes Company 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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