LGI Homes (NASDAQ:LGIH) Sets New 1-Year Low - Time to Sell?

Key Points

• LGI Homes' stock price recently hit a new 52-week low at $46.89, down from a previous close of $50.12, highlighting potential market challenges.
• Analysts have mixed ratings for LGI Homes, with consensus showing a "Hold" rating and a target price around $75.67, indicating cautious investor consideration.
• The company reported earnings per share (EPS) of $1.36 for the last quarter, exceeding estimates but with significant year-over-year revenue decline of 19.8%.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s stock price hit a new 52-week low during trading on Tuesday . The stock traded as low as $47.06 and last traded at $46.89, with a volume of 297205 shares trading hands. The stock had previously closed at $50.12.

Analyst Upgrades and Downgrades

LGIH has been the subject of a number of research reports. JPMorgan Chase & Co. lowered their target price on LGI Homes from $52.00 to $47.00 and set an "underweight" rating for the company in a research note on Wednesday, July 9th. Wedbush reissued a "neutral" rating and set a $95.00 price objective on shares of LGI Homes in a research note on Monday. Weiss Ratings restated a "sell (d+)" rating on shares of LGI Homes in a report on Saturday, September 27th. JMP Securities upped their price target on shares of LGI Homes from $75.00 to $85.00 and gave the company a "market outperform" rating in a report on Wednesday, August 27th. Finally, Citigroup reissued a "market outperform" rating on shares of LGI Homes in a research report on Wednesday, August 27th. Two investment 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's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $75.67.

LGI Homes Price Performance

The firm has a 50-day moving average of $59.24 and a 200-day moving average of $56.90. The company has a debt-to-equity ratio of 0.85, a quick ratio of 0.64 and a current ratio of 18.18. The firm has a market capitalization of $1.07 billion, a P/E ratio of 7.02 and a beta of 1.77.

LGI Homes (NASDAQ:LGIH - Get Free Report) last issued its earnings results on Tuesday, August 5th. The financial services provider reported $1.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.21 by $0.15. LGI Homes had a net margin of 7.63% and a return on equity of 8.00%. The company had revenue of $483.49 million for the quarter, compared to analysts' expectations of $546.96 million. During the same quarter last year, the company posted $2.48 earnings per share. The firm's quarterly revenue was down 19.8% on a year-over-year basis. As a group, analysts predict that LGI Homes, Inc. will post 8.46 EPS for the current year.

Institutional Trading of LGI Homes

Several hedge funds have recently bought and sold shares of LGIH. MassMutual Private Wealth & Trust FSB lifted its position in shares of LGI Homes by 453.1% during the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 531 shares of the financial services provider's stock valued at $27,000 after buying an additional 435 shares in the last quarter. Russell Investments Group Ltd. raised its stake in LGI Homes by 106.6% during the 2nd quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider's stock worth $30,000 after acquiring an additional 305 shares during the period. Caitong International Asset Management Co. Ltd lifted its holdings in LGI Homes by 12,620.0% during the first quarter. Caitong International Asset Management Co. Ltd now owns 636 shares of the financial services provider's stock valued at $42,000 after purchasing an additional 631 shares in the last quarter. Signaturefd LLC boosted its position in shares of LGI Homes by 284.4% in the second quarter. Signaturefd LLC now owns 815 shares of the financial services provider's stock worth $42,000 after purchasing an additional 603 shares during the period. Finally, Rexford Capital Inc. bought a new position in shares of LGI Homes in the second quarter worth approximately $52,000. Institutional investors own 84.89% of the company's stock.

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.

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