LGI Homes (NASDAQ:LGIH) Sets New 1-Year Low - What's Next?

Key Points

• LGI Homes shares hit a new 52-week low — the stock traded as low as $39.54 (last $39.11) on Wednesday with about 55,416 shares changing hands, well below its 50- and 200-day moving averages (~$51.65/$50.30).
• Analyst sentiment is mixed (MarketBeat consensus "Hold", average price target $74.63) while the latest quarter showed EPS of $0.97 (beat by $0.01) but revenue fell 15% year‑over‑year, and company insiders have sold meaningful stakes recently.

LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $39.54 and last traded at $39.1140, with a volume of 55416 shares trading hands. The stock had previously closed at $40.93.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on LGIH shares. Citizens Jmp lifted their price target on shares of LGI Homes from $85.00 to $95.00 and gave the stock a "market outperform" rating in a research report on Wednesday, January 7th. Weiss Ratings restated a "sell (d)" rating on shares of LGI Homes in a report on Monday, December 29th. Finally, Citigroup reaffirmed an "outperform" rating on shares of LGI Homes in a research note on Wednesday, January 7th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $74.63.

LGI Homes Price Performance

The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.76 and a current ratio of 20.98. The company has a market capitalization of $910.40 million, a price-to-earnings ratio of 12.57 and a beta of 1.88. The company has a 50-day moving average price of $51.65 and a 200-day moving average price of $50.30.

LGI Homes (NASDAQ:LGIH - Get Free Report) last announced its quarterly earnings results on Tuesday, February 17th. The financial services provider reported $0.97 earnings per share for the quarter, beating analysts' consensus estimates of $0.96 by $0.01. The business had revenue of $473.97 million for the quarter, compared to the consensus estimate of $479.60 million. LGI Homes had a net margin of 4.25% and a return on equity of 4.08%. LGI Homes's revenue for the quarter was down 15.0% on a year-over-year basis. During the same period last year, the company posted $2.15 EPS. On average, equities research analysts expect that LGI Homes, Inc. will post 8.46 EPS for the current fiscal year.

Insider Activity

In other LGI Homes news, CFO Charles Michael Merdian sold 7,211 shares of LGI Homes stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $42.04, for a total transaction of $303,150.44. Following the transaction, the chief financial officer directly owned 20,540 shares in the company, valued at approximately $863,501.60. The trade was a 25.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, COO Michael Larry Snider sold 7,887 shares of the stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $42.04, for a total value of $331,569.48. Following the completion of the sale, the chief operating officer owned 30,517 shares of the company's stock, valued at $1,282,934.68. This trade represents a 20.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 22,451 shares of company stock valued at $943,840 in the last quarter. Company insiders own 12.30% of the company's stock.

Hedge Funds Weigh In On LGI Homes

Several institutional investors and hedge funds have recently modified their holdings of the business. Caitong International Asset Management Co. Ltd increased its stake in LGI Homes by 75.5% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 551 shares of the financial services provider's stock worth $28,000 after purchasing an additional 237 shares in the last quarter. Versant Capital Management Inc lifted its stake in LGI Homes by 35.1% in the third quarter. Versant Capital Management Inc now owns 947 shares of the financial services provider's stock valued at $49,000 after buying an additional 246 shares in the last quarter. PNC Financial Services Group Inc. boosted its holdings in shares of LGI Homes by 4.8% in 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 buying an additional 275 shares during the period. Illinois Municipal Retirement Fund increased its position in shares of LGI Homes by 2.6% during the third quarter. Illinois Municipal Retirement Fund now owns 10,970 shares of the financial services provider's stock worth $567,000 after acquiring an additional 275 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position 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 worth $30,000 after acquiring an additional 305 shares in the last quarter. 84.89% of the stock is currently owned by institutional investors and hedge funds.

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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