LGI Homes (NASDAQ:LGIH) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded LGI Homes from a “sell” to a “hold,” adding to a mixed analyst view that currently leaves the stock with an overall consensus rating of Hold and a target price of $72.75.
• LGI Homes reported better-than-expected earnings for the latest quarter, posting $0.24 EPS versus the $0.02 estimate, though revenue came in below expectations and fell 9% year over year.
• Insiders have been selling shares, including the COO and general counsel, while institutional investors continue to hold the majority of the stock, owning 84.89% of shares outstanding.

LGI Homes (NASDAQ:LGIH - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Sunday.

Other equities research analysts have also recently issued reports about the company. JPMorgan Chase & Co. raised their target price on LGI Homes from $38.00 to $41.00 and gave the company an "underweight" rating in a research note on Thursday, April 30th. Zacks Research upgraded shares of 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 issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $72.75.

LGI Homes Stock Up 0.8%

NASDAQ:LGIH opened at $46.67 on Friday. The company has a current ratio of 18.56, a quick ratio of 0.70 and a debt-to-equity ratio of 0.81. The stock has a 50 day moving average of $42.66 and a 200-day moving average of $47.03. The firm has a market capitalization of $1.08 billion, a PE ratio of 15.30 and a beta of 1.90. LGI Homes has a 52 week low of $33.55 and a 52 week high of $69.50.

LGI Homes (NASDAQ:LGIH - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.22. LGI Homes had a return on equity of 3.80% and a net margin of 4.22%.The business had revenue of $319.74 million for the quarter, compared to the consensus estimate of $328.22 million. During the same quarter last year, the business posted $0.17 EPS. The business's revenue was down 9.0% on a year-over-year basis. Analysts predict that LGI Homes will post 2.76 EPS for the current year.

Insider Buying and Selling

In related news, COO Michael Larry Snider sold 6,000 shares of the stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $42.04, for a total value of $252,240.00. Following the completion of the transaction, the chief operating officer owned 175,556 shares in the company, valued at $7,380,374.24. This represents a 3.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, General Counsel Scott James Garber sold 1,353 shares of the firm's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $42.04, for a total transaction of $56,880.12. Following the transaction, the general counsel directly owned 21,716 shares in the company, valued at approximately $912,940.64. The trade was a 5.87% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 22,451 shares of company stock valued at $943,840 over the last 90 days. 12.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On LGI Homes

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Voss Capital LP grew its holdings in LGI Homes by 33.3% during the third quarter. Voss Capital LP now owns 300,000 shares of the financial services provider's stock worth $15,513,000 after acquiring an additional 75,000 shares during the period. JPMorgan Chase & Co. lifted its holdings in LGI Homes by 244.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 61,384 shares of the financial services provider's stock valued at $3,174,000 after acquiring an additional 43,572 shares during the last quarter. SG Americas Securities LLC boosted its position in shares of LGI Homes by 1,158.0% during the 4th quarter. SG Americas Securities LLC now owns 91,471 shares of the financial services provider's stock valued at $3,930,000 after purchasing an additional 84,200 shares in the last quarter. Commons Capital LLC bought a new position in shares of LGI Homes during the 3rd quarter valued at about $593,000. Finally, Rafferty Asset Management LLC grew its stake in shares of LGI Homes by 83.2% in the 3rd quarter. Rafferty Asset Management LLC now owns 30,624 shares of the financial services provider's stock worth $1,584,000 after purchasing an additional 13,909 shares during the last quarter. 84.89% of the stock is owned by 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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