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

Key Points

• LGI Homes, Inc. has been given an average "Hold" rating by five rating firms, with a 12-month price target set at $71.67.
• Hedge funds and institutional investors own approximately 84.89% of LGI Homes' stock, with several firms significantly increasing their stakes during the second quarter.
• The company reported a quarterly earnings of $1.36 per share, exceeding estimates, but experienced a 19.8% drop in revenue compared to the previous year.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) has been assigned an average rating of "Hold" from the five research firms that are covering the stock, MarketBeat reports. One research 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. The average 1-year price objective among brokerages that have updated their coverage on the stock in the last year is $71.6667.

A number of research analysts have weighed in on the stock. JMP Securities set a $75.00 price target on shares of LGI Homes and gave the company a "market outperform" rating in a research report on Thursday. Citigroup reaffirmed an "outperform" rating on shares of LGI Homes in a research report on Thursday. Wedbush reiterated a "neutral" rating and set a $93.00 price objective on shares of LGI Homes in a research note on Monday, July 7th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of LGI Homes from $52.00 to $47.00 and set an "underweight" rating on the stock in a research note on Wednesday, July 9th.

LGI Homes Trading Down 2.5%

LGIH stock traded down $1.43 during midday trading on Friday, reaching $55.68. 41,101 shares of the company's stock traded hands, compared to its average volume of 321,937. The company has a market capitalization of $1.28 billion, a P/E ratio of 8.37 and a beta of 1.69. The company has a debt-to-equity ratio of 0.85, a current ratio of 18.18 and a quick ratio of 0.64. LGI Homes has a fifty-two week low of $47.17 and a fifty-two week high of $125.83. The business has a 50-day moving average price of $53.06 and a two-hundred day moving average price of $62.62.

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

Institutional Trading of LGI Homes

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Dimensional Fund Advisors LP increased its stake in shares of LGI Homes by 0.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,504,384 shares of the financial services provider's stock worth $134,491,000 after buying an additional 6,706 shares during the last quarter. Wasatch Advisors LP increased its stake in shares of LGI Homes by 2.7% in the fourth quarter. Wasatch Advisors LP now owns 1,395,710 shares of the financial services provider's stock worth $124,776,000 after buying an additional 36,608 shares during the last quarter. Khrom Capital Management LLC increased its stake in shares of LGI Homes by 19.4% in the fourth quarter. Khrom Capital Management LLC now owns 1,095,801 shares of the financial services provider's stock worth $97,965,000 after buying an additional 177,698 shares during the last quarter. CDAM UK Ltd increased its stake in shares of LGI Homes by 4.4% in the first quarter. CDAM UK Ltd now owns 766,210 shares of the financial services provider's stock worth $50,930,000 after buying an additional 32,267 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in shares of LGI Homes by 5.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 395,810 shares of the financial services provider's stock worth $26,309,000 after buying an additional 19,017 shares during the last quarter. 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.