LGI Homes (NASDAQ:LGIH) Shares Gap Up - What's Next?

Key Points

• LGI Homes shares gapped up from $65.02 to $67.66 at the market open, with the last trading price at $65.84 and a volume of 62,559 shares exchanged.
• Analysts have set mixed price targets for LGI Homes, with JPMorgan lowering their target to $47 and JMP Securities cutting theirs to $75, while Citigroup maintains an "outperform" rating.
• The company's latest earnings report showed a $1.36 EPS, beating estimates but with a 19.8% decline in quarterly revenue compared to the previous year.

Shares of LGI Homes, Inc. (NASDAQ:LGIH - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $65.02, but opened at $67.66. LGI Homes shares last traded at $65.84, with a volume of 62,559 shares changing hands.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on LGIH shares. JPMorgan Chase & Co. decreased 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. JMP Securities cut their price target on LGI Homes from $140.00 to $75.00 and set a "market outperform" rating for the company in a research note on Thursday, August 7th. Wedbush restated a "neutral" rating and issued a $93.00 price target on shares of LGI Homes in a report on Monday, July 7th. Finally, Citigroup reiterated an "outperform" rating on shares of LGI Homes in a report on Thursday, August 7th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat.com, LGI Homes presently has a consensus rating of "Hold" and a consensus target price of $71.67.

LGI Homes Stock Down 0.7%

The company has a 50 day moving average of $54.08 and a 200-day moving average of $62.21. 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 has a market capitalization of $1.49 billion, a P/E ratio of 9.74 and a beta of 1.69.

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

Hedge Funds Weigh In On LGI Homes

Institutional investors and hedge funds have recently bought and sold shares of the business. Wealth Enhancement Advisory Services LLC lifted its stake in shares of LGI Homes by 213.5% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 10,234 shares of the financial services provider's stock worth $680,000 after acquiring an additional 6,970 shares during the period. GAMMA Investing LLC lifted its stake in shares of LGI Homes by 219.1% in the 1st quarter. GAMMA Investing LLC now owns 887 shares of the financial services provider's stock worth $59,000 after acquiring an additional 609 shares during the period. Northern Trust Corp lifted its stake in shares of LGI Homes by 11.5% in the fourth quarter. Northern Trust Corp now owns 219,547 shares of the financial services provider's stock valued at $19,628,000 after purchasing an additional 22,615 shares during the period. Janney Montgomery Scott LLC lifted its stake in shares of LGI Homes by 22.4% in the first quarter. Janney Montgomery Scott LLC now owns 3,406 shares of the financial services provider's stock valued at $226,000 after purchasing an additional 623 shares during the period. Finally, Tributary Capital Management LLC increased its holdings in LGI Homes by 15.0% during the 1st quarter. Tributary Capital Management LLC now owns 215,556 shares of the financial services provider's stock valued at $14,328,000 after acquiring an additional 28,095 shares in the last quarter. 84.89% of the stock is currently owned by institutional investors and hedge funds.

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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