LGI Homes (NASDAQ:LGIH) Shares Down 4.7% - Here's Why

Key Points

• Shares of LGI Homes fell 4.7%, closing at $50.66, with a notable drop in trading volume, down 69% from the average daily volume.
• Several analysts have given mixed ratings on LGI Homes, with a current average rating of "Hold" and an average target price of $75.67.
• LGI Homes reported a 19.8% decline in revenue compared to the previous year, with an EPS of $1.36, beating estimates but lower than last year's $2.48.

Shares of LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) dropped 4.7% during mid-day trading on Monday . The stock traded as low as $50.99 and last traded at $50.66. Approximately 105,662 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 340,106 shares. The stock had previously closed at $53.17.

Wall Street Analyst Weigh In

Several research analysts recently commented on LGIH shares. Weiss Ratings reissued a "sell (d+)" rating on shares of LGI Homes in a research note on Saturday, September 27th. Wedbush restated a "neutral" rating and set a $95.00 price target on shares of LGI Homes in a research report on Monday. Citigroup reaffirmed a "market outperform" rating on shares of LGI Homes in a research note on Wednesday, August 27th. JMP Securities boosted their target price on LGI Homes from $75.00 to $85.00 and gave the stock a "market outperform" rating in a report on Wednesday, August 27th. Finally, JPMorgan Chase & Co. cut their price target on LGI Homes from $52.00 to $47.00 and set an "underweight" rating for the company in a report on Wednesday, July 9th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, LGI Homes presently has an average rating of "Hold" and an average target price of $75.67.

LGI Homes Price Performance

The firm has a market capitalization of $1.16 billion, a price-to-earnings ratio of 7.56 and a beta of 1.77. The stock's fifty day moving average price is $59.37 and its two-hundred day moving average price is $57.04. The company has a current ratio of 18.18, a quick ratio of 0.64 and a debt-to-equity ratio of 0.85.

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

Institutional Investors Weigh In On LGI Homes

Institutional investors and hedge funds have recently bought and sold shares of the stock. MassMutual Private Wealth & Trust FSB increased its position in shares of LGI Homes by 453.1% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 531 shares of the financial services provider's stock worth $27,000 after purchasing an additional 435 shares in the last quarter. Russell Investments Group Ltd. increased its position in 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 buying an additional 305 shares during the period. Caitong International Asset Management Co. Ltd increased its position 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 worth $42,000 after buying an additional 631 shares during the period. Signaturefd LLC lifted its stake in LGI Homes by 284.4% in the second quarter. Signaturefd LLC now owns 815 shares of the financial services provider's stock valued at $42,000 after buying an additional 603 shares during the last quarter. Finally, Rexford Capital Inc. acquired a new stake in shares of LGI Homes in the second quarter valued at approximately $52,000. 84.89% of the stock is owned by hedge funds and other institutional investors.

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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