LGI Homes (NASDAQ:LGIH) Price Target Raised to $41.00

Key Points

• JPMorgan Chase raised its price target on LGI Homes to $41 from $38 but maintained an "underweight" rating, implying about a 16.3% downside from the current stock price.
• Analyst coverage is mixed (2 Buy, 2 Hold, 2 Sell) with a consensus "Hold" and an average target of $72.75; shares traded around $48.97, with Q1 EPS of $0.24 beating estimates while revenue fell 9% year-over-year.
• Company insiders have been net sellers (22,451 shares sold in the last 90 days, including notable sales by the General Counsel and CFO), while institutional investors own roughly 84.9% of the stock.

LGI Homes (NASDAQ:LGIH - Get Free Report) had its price target hoisted by stock analysts at JPMorgan Chase & Co. from $38.00 to $41.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has an "underweight" rating on the financial services provider's stock. JPMorgan Chase & Co.'s price objective would suggest a potential downside of 16.28% from the company's current price.

Other analysts also recently issued reports about the company. Citigroup reissued an "outperform" rating on shares of LGI Homes in a research report on Wednesday, January 7th. Citizens Jmp lifted their price objective on LGI Homes from $85.00 to $95.00 and gave the company a "market outperform" rating in a research note on Wednesday, January 7th. Finally, Zacks Research raised LGI Homes from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 21st. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $72.75.

LGI Homes Trading Up 2.2%

Shares of LGIH traded up $1.04 during midday trading on Thursday, reaching $48.97. The company had a trading volume of 488,969 shares, compared to its average volume of 470,210. LGI Homes has a 1-year low of $33.55 and a 1-year high of $69.50. The stock has a market cap of $1.13 billion, a PE ratio of 15.65 and a beta of 1.86. The firm has a 50 day simple moving average of $43.19 and a 200-day simple moving average of $46.97. The company has a quick ratio of 0.76, a current ratio of 20.98 and a debt-to-equity ratio of 0.79.

LGI Homes (NASDAQ:LGIH - Get Free Report) last issued its earnings results on Tuesday, April 28th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.11 by $0.13. The business had revenue of $319.74 million during the quarter, compared to the consensus estimate of $336.60 million. LGI Homes had a return on equity of 4.08% and a net margin of 4.25%.The company's revenue for the quarter was down 9.0% on a year-over-year basis. During the same period last year, the company earned $0.17 EPS. Research analysts forecast that LGI Homes will post 2.45 EPS for the current fiscal year.

Insider Activity

In related news, General Counsel Scott James Garber sold 1,353 shares of LGI Homes stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $42.04, for a total value of $56,880.12. Following the sale, the general counsel directly owned 21,716 shares in the company, valued at $912,940.64. The trade was a 5.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Charles Michael Merdian sold 7,211 shares of LGI Homes stock in a transaction that occurred on 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 in the company, valued at approximately $863,501.60. This trade represents a 25.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 22,451 shares of company stock valued at $943,840. Company insiders own 12.60% of the company's stock.

Institutional Trading of LGI Homes

A number of institutional investors have recently bought and sold shares of the company. Inspire Investing LLC boosted its position in LGI Homes by 21.8% during the first quarter. Inspire Investing LLC now owns 13,186 shares of the financial services provider's stock worth $521,000 after purchasing an additional 2,356 shares in the last quarter. Louisiana State Employees Retirement System purchased a new stake in shares of LGI Homes in the first quarter valued at $356,000. Rockefeller Capital Management L.P. lifted its position in shares of LGI Homes by 1,759.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 874 shares of the financial services provider's stock valued at $38,000 after acquiring an additional 827 shares in the last quarter. River Road Asset Management LLC lifted its position in shares of LGI Homes by 2.0% in the fourth quarter. River Road Asset Management LLC now owns 931,391 shares of the financial services provider's stock valued at $40,013,000 after acquiring an additional 18,682 shares in the last quarter. Finally, Virtu Financial LLC lifted its position in shares of LGI Homes by 18.8% in the fourth quarter. Virtu Financial LLC now owns 7,889 shares of the financial services provider's stock valued at $339,000 after acquiring an additional 1,246 shares in the last quarter. 84.89% of the stock is currently owned by hedge funds and other institutional investors.

About LGI Homes

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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