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

Key Points

• LGI Homes shares reached a new 52-week low at $43.99, reflecting a decline in stock value as trading persisted at approximately $44.64.
• Recent analyst ratings indicate mixed opinions on LGI Homes, with two analysts assigning a Buy rating and others issuing Sell or neutral ratings, leading to an average "Hold" rating with a consensus target price of $71.75.
• Financial performance shows a 19.8% year-over-year decline in revenue, reporting $483.49 million, despite beating earnings expectations by earning $1.36 per share.

Shares of LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) hit a new 52-week low on Monday . The stock traded as low as $43.99 and last traded at $44.64, with a volume of 27808 shares. The stock had previously closed at $44.77.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. Weiss Ratings reiterated a "sell (d+)" rating on shares of LGI Homes in a report on Wednesday, October 8th. Capital One Financial set a $60.00 price objective on shares of LGI Homes in a report on Thursday. Wedbush restated a "neutral" rating and issued a $95.00 price target on shares of LGI Homes in a report on Monday, October 6th. JMP Securities raised 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, JPMorgan Chase & Co. cut their price target on shares of LGI Homes from $52.00 to $47.00 and set an "underweight" rating on the stock in a report on Wednesday, July 9th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $71.75.

LGI Homes Price Performance

The company has a debt-to-equity ratio of 0.85, a current ratio of 18.18 and a quick ratio of 0.64. The company's 50-day simple moving average is $58.56 and its 200-day simple moving average is $56.22. The company has a market cap of $1.02 billion, a price-to-earnings ratio of 6.68 and a beta of 1.77.

LGI Homes (NASDAQ:LGIH - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The financial services provider reported $1.36 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to the consensus estimate of $546.96 million. During the same quarter last year, the company earned $2.48 earnings per share. LGI Homes's revenue for the quarter was down 19.8% on a year-over-year basis. On average, equities research analysts anticipate that LGI Homes, Inc. will post 8.46 EPS for the current year.

Institutional Trading of LGI Homes

Several large investors have recently bought and sold shares of LGIH. Envestnet Portfolio Solutions Inc. raised its stake in shares of LGI Homes by 8.8% during the first quarter. Envestnet Portfolio Solutions Inc. now owns 3,023 shares of the financial services provider's stock valued at $201,000 after purchasing an additional 245 shares in the last quarter. Exencial Wealth Advisors LLC raised its stake in shares of LGI Homes by 8.0% during the first quarter. Exencial Wealth Advisors LLC now owns 3,621 shares of the financial services provider's stock valued at $241,000 after purchasing an additional 269 shares in the last quarter. PNC Financial Services Group Inc. raised its stake in shares of LGI Homes by 4.8% during the second quarter. PNC Financial Services Group Inc. now owns 5,976 shares of the financial services provider's stock valued at $308,000 after purchasing an additional 275 shares in the last quarter. Russell Investments Group Ltd. raised its stake in shares of LGI Homes by 106.6% during the second quarter. Russell Investments Group Ltd. now owns 591 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 305 shares in the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in shares of LGI Homes by 6.8% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 5,288 shares of the financial services provider's stock valued at $272,000 after purchasing an additional 336 shares in the last quarter. Institutional investors and hedge funds own 84.89% of the company's stock.

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.

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