LGI Homes (NASDAQ:LGIH) Posts Earnings Results, Beats Expectations 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) issued its quarterly earnings results on Tuesday. The financial services provider reported $1.36 EPS for the quarter, topping analysts' consensus estimates of $1.21 by $0.15, Zacks reports. LGI Homes had a net margin of 7.63% and a return on equity of 8.00%. The business had revenue of $483.49 million during the quarter, compared to the consensus estimate of $546.96 million. During the same period in the previous year, the firm posted $2.48 earnings per share. The company's quarterly revenue was down 19.8% compared to the same quarter last year.

LGI Homes Stock Down 0.2%

NASDAQ LGIH traded down $0.13 during trading hours on Thursday, hitting $57.89. The company had a trading volume of 121,494 shares, compared to its average volume of 322,538. The firm's 50 day moving average is $52.79 and its 200 day moving average is $63.52. The company has a debt-to-equity ratio of 0.85, a current ratio of 18.18 and a quick ratio of 0.54. LGI Homes has a fifty-two week low of $47.17 and a fifty-two week high of $125.83. The company has a market capitalization of $1.36 billion, a price-to-earnings ratio of 8.73 and a beta of 1.69.

Analyst Upgrades and Downgrades

Several analysts have commented on LGIH shares. Wedbush restated a "neutral" rating and issued a $93.00 price target on shares of LGI Homes in a report on Monday, July 7th. Citigroup reaffirmed an "outperform" rating on shares of LGI Homes in a research report on Thursday. JMP Securities decreased their price target on shares of LGI Homes from $140.00 to $75.00 and set a "market outperform" rating on the stock in a report on Thursday. Finally, JPMorgan Chase & Co. dropped their price objective on LGI Homes from $52.00 to $47.00 and set an "underweight" rating for the company in a report on Wednesday, July 9th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the company. According to MarketBeat.com, LGI Homes presently has a consensus rating of "Hold" and a consensus price target of $71.67.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of LGI Homes by 5.2% during 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 acquiring an additional 621 shares during the last quarter. Royal Bank of Canada boosted its stake in LGI Homes by 58.7% during the 1st quarter. Royal Bank of Canada now owns 4,721 shares of the financial services provider's stock valued at $313,000 after purchasing an additional 1,746 shares during the period. Finally, Goldman Sachs Group Inc. grew its position 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 worth $16,627,000 after purchasing an additional 12,524 shares during the last quarter. 84.89% of the stock is owned by institutional investors and hedge funds.

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.