LGI Homes (NASDAQ:LGIH) Sets New 52-Week Low Following Weak Earnings

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $52.91 and last traded at $52.64, with a volume of 16811 shares traded. The stock had previously closed at $54.64.

The financial services provider reported $0.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.75 by ($0.29). The company had revenue of $351.42 million during the quarter, compared to the consensus estimate of $380.07 million. LGI Homes had a return on equity of 10.32% and a net margin of 8.75%. The company's revenue for the quarter was down 10.1% on a year-over-year basis. During the same period last year, the business posted $0.72 EPS.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on LGIH shares. Wedbush reaffirmed a "neutral" rating and issued a $115.00 price objective (down previously from $125.00) on shares of LGI Homes in a report on Tuesday, January 7th. JPMorgan Chase & Co. dropped their price target on shares of LGI Homes from $82.00 to $80.00 and set an "underweight" rating on the stock in a research note on Tuesday, January 14th. JMP Securities reaffirmed a "market outperform" rating and set a $140.00 price target on shares of LGI Homes in a report on Wednesday. Finally, Seaport Res Ptn raised LGI Homes from a "strong sell" rating to a "hold" rating in a report on Monday, January 27th. Two analysts have rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $111.67.

Insider Buying and Selling at LGI Homes

In other news, COO Michael Larry Snider sold 1,105 shares of the stock in a transaction that occurred on Monday, March 10th. The shares were sold at an average price of $75.94, for a total value of $83,913.70. Following the completion of the transaction, the chief operating officer now directly owns 27,102 shares in the company, valued at $2,058,125.88. This trade represents a 3.92 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 12.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On LGI Homes

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of LGI Homes by 2.4% during the 4th quarter. Vanguard Group Inc. now owns 2,274,907 shares of the financial services provider's stock valued at $203,377,000 after purchasing an additional 54,039 shares during the period. Dimensional Fund Advisors LP grew its holdings in LGI Homes by 0.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,504,384 shares of the financial services provider's stock worth $134,491,000 after acquiring an additional 6,706 shares during the period. Wasatch Advisors LP raised its position in LGI Homes by 2.7% in the fourth quarter. Wasatch Advisors LP now owns 1,395,710 shares of the financial services provider's stock worth $124,776,000 after acquiring an additional 36,608 shares in the last quarter. Khrom Capital Management LLC lifted its holdings in LGI Homes by 19.4% in the 4th quarter. Khrom Capital Management LLC now owns 1,095,801 shares of the financial services provider's stock valued at $97,965,000 after acquiring an additional 177,698 shares during the last quarter. Finally, River Road Asset Management LLC boosted its position in shares of LGI Homes by 30.6% during the 4th quarter. River Road Asset Management LLC now owns 907,923 shares of the financial services provider's stock valued at $81,168,000 after purchasing an additional 212,468 shares in the last quarter. 84.89% of the stock is currently owned by institutional investors and hedge funds.

LGI Homes Price Performance

The company has a current ratio of 12.72, a quick ratio of 0.54 and a debt-to-equity ratio of 0.77. The business's fifty day moving average is $65.00 and its 200 day moving average is $85.30. The firm has a market capitalization of $1.29 billion, a P/E ratio of 6.61 and a beta of 1.93.

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.