LGI Homes (NASDAQ:LGIH) Posts Earnings Results, Beats Estimates By $0.15 EPS

Key Points

• LGI Homes reported a quarterly earnings of $1.36 EPS, beating expectations by $0.15, despite a 19.8% year-over-year decline in revenue.
• Shares of LGI Homes increased by $6.01 midday on the release day, reaching a price of $60.65, with institutional investors holding 84.89% of the stock.
• Analysts have varied price targets for the stock, with JMP Securities setting a target at $140.00 while JPMorgan reduced their target to $47.00.

LGI Homes (NASDAQ:LGIH - Get Free Report) posted its quarterly earnings data on Tuesday. The financial services provider reported $1.36 EPS for the quarter, beating analysts' consensus estimates of $1.21 by $0.15, Zacks reports. The company had revenue of $483.49 million during the quarter, compared to analyst estimates of $546.96 million. LGI Homes had a net margin of 7.63% and a return on equity of 8.00%. The business's quarterly revenue was down 19.8% on a year-over-year basis. During the same period in the prior year, the firm earned $2.48 earnings per share.

LGI Homes Trading Down 0.2%

Shares of LGI Homes stock traded down $0.12 during trading on Friday, hitting $57.11. 299,585 shares of the company were exchanged, compared to its average volume of 377,760. The company has a debt-to-equity ratio of 0.85, a current ratio of 18.18 and a quick ratio of 0.54. The firm's fifty day moving average price is $53.06 and its 200 day moving average price is $62.83. LGI Homes has a 1-year low of $47.17 and a 1-year high of $125.83. The firm has a market capitalization of $1.32 billion, a P/E ratio of 8.61 and a beta of 1.69.

Hedge Funds Weigh In On LGI Homes

Several institutional investors and hedge funds have recently modified their holdings of LGIH. Goldman Sachs Group Inc. raised its stake in LGI Homes by 5.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 250,142 shares of the financial services provider's stock valued at $16,627,000 after acquiring an additional 12,524 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of LGI Homes by 5.2% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,502 shares of the financial services provider's stock worth $831,000 after purchasing an additional 621 shares during the period. Finally, Royal Bank of Canada increased its position in shares of LGI Homes by 58.7% in the first quarter. Royal Bank of Canada now owns 4,721 shares of the financial services provider's stock worth $313,000 after purchasing an additional 1,746 shares during the period. 84.89% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

LGIH has been the subject of several research reports. Citigroup restated an "outperform" rating on shares of LGI Homes in a report on Thursday. Wedbush reissued a "neutral" rating and issued a $93.00 price target on shares of LGI Homes in a research report on Monday, July 7th. JPMorgan Chase & Co. lowered 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. Finally, JMP Securities lowered their price objective on shares of LGI Homes from $140.00 to $75.00 and set a "market outperform" rating on the stock in a research note on Thursday. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have issued a buy rating to the company's stock. According to data from MarketBeat.com, LGI Homes currently has a consensus rating of "Hold" and a consensus target price of $71.67.

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.