LGI Homes (NASDAQ:LGIH) Releases Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Key Points

• LGI Homes reported $0.24 EPS, beating consensus by $0.13, but revenue declined 9.0% year‑over‑year to $319.74 million, missing estimates of $336.6 million.
• Shares jumped $4 to $49.32 after the results; the stock has a market cap of $1.14 billion, a P/E of 15.57 and a 52‑week range of $33.55–$69.50, while current volume was below its average.
• Company insiders sold 22,451 shares in the past 90 days (including CFO and GC transactions), and analyst coverage is mixed with a MarketBeat consensus rating of "Hold" and a $74.63 target price.

LGI Homes (NASDAQ:LGIH - Get Free Report) issued its earnings results on Tuesday. The financial services provider reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.13, Zacks reports. LGI Homes had a return on equity of 4.08% and a net margin of 4.25%.The firm had revenue of $319.74 million for the quarter, compared to analyst estimates of $336.60 million. During the same period in the previous year, the company posted $0.17 earnings per share. The business's revenue was down 9.0% on a year-over-year basis.

LGI Homes Stock Performance

Shares of NASDAQ:LGIH traded up $4.00 on Tuesday, reaching $49.32. The company's stock had a trading volume of 179,164 shares, compared to its average volume of 454,880. LGI Homes has a 52-week low of $33.55 and a 52-week high of $69.50. The stock's 50-day moving average is $43.51 and its two-hundred day moving average is $46.93. The stock has a market capitalization of $1.14 billion, a P/E ratio of 15.57 and a beta of 1.86. The company has a debt-to-equity ratio of 0.79, a current ratio of 20.98 and a quick ratio of 0.76.

Analyst Upgrades and Downgrades

LGIH has been the subject of a number of research reports. Weiss Ratings reiterated a "sell (d)" rating on shares of LGI Homes in a report on Monday, December 29th. Zacks Research upgraded LGI Homes from a "strong sell" rating to a "hold" rating in a report on Tuesday, April 21st. Citigroup reiterated an "outperform" rating on shares of LGI Homes in a report on Wednesday, January 7th. Finally, Citizens Jmp increased their target price on LGI Homes from $85.00 to $95.00 and gave the company a "market outperform" rating in a report on Wednesday, January 7th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $74.63.

Insider Buying and Selling at LGI Homes

In related news, CFO Charles Michael Merdian sold 7,211 shares of the firm's stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $42.04, for a total transaction of $303,150.44. Following the completion of the sale, the chief financial officer directly 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. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Scott James Garber sold 1,353 shares of the company's stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $42.04, for a total transaction of $56,880.12. Following the completion of the sale, 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 disclosure for this sale is available in the SEC filing. In 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 Investors Weigh In On LGI Homes

Large investors have recently bought and sold shares of the company. VARCOV Co. acquired a new stake in LGI Homes during the fourth quarter worth about $282,000. WINTON GROUP Ltd acquired a new stake in LGI Homes during the second quarter worth about $281,000. Jump Financial LLC acquired a new stake in LGI Homes during the fourth quarter worth about $253,000. FORA Capital LLC acquired a new stake in LGI Homes during the second quarter worth about $247,000. Finally, Headlands Technologies LLC acquired a new stake in LGI Homes during the fourth quarter worth about $225,000. 84.89% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.