LGI Homes (NASDAQ:LGIH) Announces Earnings Results

Key Points

• LGI Homes beat quarterly expectations: EPS came in at $1.16 versus the $0.98 consensus estimate, while revenue reached $516.05 million, 6.7% higher than a year earlier. EPS declined from $1.36 in the prior-year quarter.
• The stock rose to $59.72 during Tuesday trading, with shares remaining below the 12-month high of $69.50. LGI Homes has an average analyst rating of “Hold” and an average price target of $72.75.
• Institutional investors own 84.89% of LGI Homes, with several funds—including Invesco and Tudor Investment—recently increasing their positions.

LGI Homes (NASDAQ:LGIH - Get Free Report) released its quarterly earnings data on Tuesday. The financial services provider reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.18, Zacks reports. LGI Homes had a return on equity of 3.80% and a net margin of 4.22%.The business had revenue of $516.05 million during the quarter, compared to analysts' expectations of $489.23 million. During the same period in the prior year, the firm posted $1.36 EPS. The business's quarterly revenue was up 6.7% compared to the same quarter last year.

LGI Homes Stock Performance

LGI Homes stock traded up $3.62 during midday trading on Tuesday, hitting $59.72. 152,983 shares of the company's stock were exchanged, compared to its average volume of 427,063. The company has a debt-to-equity ratio of 0.81, a quick ratio of 0.70 and a current ratio of 18.56. The stock has a market cap of $1.39 billion, a price-to-earnings ratio of 19.59 and a beta of 1.83. LGI Homes has a 12-month low of $33.55 and a 12-month high of $69.50. The firm's 50 day simple moving average is $56.36 and its 200 day simple moving average is $50.22.

Analysts Set New Price Targets

LGIH has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a "sell (d)" rating on shares of LGI Homes in a report on Friday, May 22nd. Wall Street Zen raised shares of LGI Homes from a "sell" rating to a "hold" rating in a research report on Saturday, June 6th. Zacks Research upgraded shares of LGI Homes from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 21st. Finally, JPMorgan Chase & Co. boosted their price target on shares of LGI Homes from $38.00 to $41.00 and gave the company an "underweight" rating in a research report on Thursday, April 30th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, LGI Homes currently has an average rating of "Hold" and an average price target of $72.75.

Institutional Trading of LGI Homes

Several institutional investors and hedge funds have recently added to or reduced their stakes in LGIH. Virtu Financial LLC grew its stake in shares of LGI Homes by 18.8% in the 4th quarter. Virtu Financial LLC now owns 7,889 shares of the financial services provider's stock valued at $339,000 after purchasing an additional 1,246 shares during the last quarter. Invesco Ltd. raised its position in LGI Homes by 49.6% during the 4th quarter. Invesco Ltd. now owns 123,081 shares of the financial services provider's stock worth $5,288,000 after buying an additional 40,832 shares during the last quarter. VARCOV Co. purchased a new position in LGI Homes during the 4th quarter worth $282,000. Voloridge Investment Management LLC lifted its stake in shares of LGI Homes by 10.1% in the 4th quarter. Voloridge Investment Management LLC now owns 170,657 shares of the financial services provider's stock worth $7,331,000 after acquiring an additional 15,645 shares during the period. Finally, Tudor Investment Corp ET AL lifted its stake in shares of LGI Homes by 342.4% in the 4th quarter. Tudor Investment Corp ET AL now owns 30,523 shares of the financial services provider's stock worth $1,311,000 after acquiring an additional 23,623 shares during the period. 84.89% of the stock is owned by hedge funds and other institutional investors.

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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